Exports remain the furniture industry's main growth engine, says RisCo.ro study

Exports remain the furniture industry’s main growth engine, says RisCo.ro study

Newsroom 03/07/2015 | 12:58

2014 has known a positive evolution in the furniture sector, even though industry leaders were less optimistic about its evolution, shows a study by RisCo.ro. All top ten industry players registered profit in 2014, with export remaining the main sales source. However, an increase in internal sales has also been felt.

The biggest profit was registered by Johnson Controls in Arges, reaching some RON 158 million (EUR 35.2 million), after having RON 53.3 million (EUR 11.87 million) in loss in 2013. They had a turnover of RON 1.46 billion (EUR 0.33 billion), down by almost RON 170 million (EUR 37.87 million) as compared to 2013. Their number of employees also increased. Major changes in the company’s financial structure occurred in terms of a 25 percent reduction in stocks to RON 23 million (EUR 15.12 million) and an increase in receivables by almost half to RON 384.4 million (EUR 85.64 million).

Aramis Invest, taking second place after Johnson Controls, has known a drop in profit by RON 4.3 million, but had a turnover increase to RON 567.1 million. Italsofa saw a drop in both profit and turnover, but kept its third place in the industry top.

“2015 will not bring significant changes in the furniture market, which appears to have recovered from the difficult years of the recession. Exports will continue to be the driving force of this sector, with a gradual increase of the degree of raw material processing. However, profitability margins are put under significant competitive pressure in the industry and will be on a downward slope, by 3.5 to four percent as opposed to five percent over what they were a few years ago,” concludes the RisCo.ro study.

Natalia Martian