Efforts to accelerate growth and improve earnings progressed to plan in 2017 as Louis Poulsen lifted group revenue by 7% and boosted EBITDA by 40%. The strong financial performance was driven by continued investments in the business and progress across brand building, product development and sales as well as organisational and operational improvements.
Based on positive brand and product developments in 2017, Louis Poulsen grew total revenue to DKK 801 million (2016: DKK 750 million) with an increasing share deriving from newly launched products and strong contributions from the existing portfolio of renowned design icons. Louis Poulsen continued to expand the group’s sales force and store network adding 134 new shop-in-shops during the year, while simultaneously opening three new owned web shops in Sweden, Norway and Germany.
Profitability improved significantly as EBITDA grew to DKK 146 million (2016: DKK 104 million) resulting in an EBITDA margin of 18% (2016: 14%) driven by higher revenue as well as organisational and operational improvements. Louis Poulsen’s focus on ensuring quality and efficiency in the product development process while reducing sourcing costs was instrumental to the group’s ability to successfully launch 13 new products during the year and generate strong financial results. In addition, the streamlining and strengthening of Louis Poulsen’s sales organisation across several markets played a key role in ensuring improved profitability and laying the foundation for future growth.
“2017 was a great year for Louis Poulsen as we saw our employees’ team efforts and hard work materialise in terms of a strengthening of our brand and product development as well as significant growth in revenue and earnings. We continued building a stronger sales organisation to meet the increasing demand and stimulate customers’ interest in new and heritage products alike, and the 2017 results clearly underline that Louis Poulsen is on the right track,” said CEO Søren Mygind Eskildsen.
Based on the positive earnings development, Louis Poulsen improved cash flow from operating activities to DKK 146 million (2016: DKK 99 million) and reduced the group’s net interest-bearing debt to DKK 34 million (2016: DKK 110 million). The group maintained a high investment level and will continue to invest in physical stores, e-commerce and presence on third party platforms, among other things.
“Developments in 2017 certainly bode well for Louis Poulsen’s future, and we have set out to continue the positive trend and pursue profitable growth across our markets and platforms. Our ambitions for the coming five years project continued expansion of the sales network across Europe, Asia and the US in particular combined with further operational improvements. We will continue the flow of successful and profitable product launches to further develop Louis Poulsen as a high-end global lighting brand and business poised for further growth,” said CEO Søren Mygind Eskildsen.
Management expects continued revenue growth and improved earnings in 2018 based on the positive developments in 2017 and continued strengthening of the sales force.
Søren Mygind Eskildsen, CEO
|
DKK’m |
2017 |
2016 |
|
Revenue |
801 |
750 |
|
EBITDA |
146 |
104 |
|
EBITDA margin, % |
18.2 |
13.9 |
|
Equity |
354 |
278 |
|
Net interest-bearing debt |
34 |
110 |
|
Employees, end-2017 |
459 |
393 |
Louis Poulsen is a Danish lighting manufacturer founded in 1874 and born out of the Scandinavian design tradition where form follows function. The function and design of our products are tailored to reflect and support the rhythm of natural light. Since our first collaboration with Poul Henningsen in 1924, his views on the dualities of design and light have influenced our light philosophy. Every detail in the design has a purpose. Every design starts and ends with light.
We believe in passionate craftsmanship that produces quality lighting and appealing design products. In close partnership with world-class designers, architects and other talents, we have established Louis Poulsen as one of the key global suppliers of architectural and decorative lighting across the professional and private lighting markets for both indoor and outdoor applications. Louis Poulsen has a global distribution network, 12 subsidiaries and dedicated showrooms in Copenhagen, Stockholm, Miami, Helsinki, Oslo, Los Angeles, Singapore, Tokyo and Dusseldorf. We design to shape light.
Louis Poulsen: Sarah Lærke Stevens, sls@louispoulsen.dk, Tel: (+45) 4123 7903
Press release, 9 May 2018