Actona Group invests in transformation to drive profitable growth

Actona Group reports a revenue of DKK 2.5bn for the financial year 2024/25, maintaining its position as a significant manufacturer and wholesaler in the European furniture market

The annual results reflect a continued challenging market and an industry marked by geopolitical uncertainty. Actona Group experienced a seven percent decline in net revenue for the financial year, primarily driven by intense price competition and declining volumes across several markets, including the DACH region. EBITDA landed at DKK 29m compared to DKK 225m last year. After a goodwill impairment of DKK 44m – and other depreciation – EBIT was realised at DKK -56m compared to DKK 140m last year.

“It has been a challenging year, where geopolitical conditions have significantly contributed to creating a considerable gap between our results and overall ambition,” says Jimmi Mortensen, President & CEO of Actona Group.

“Despite these challenges, we maintain strong confidence in our adjusted business model, which combines our historical sourcing operations in Asia with the acquisition of European upholstery manufacturing. We have initiated a significant transformation and integration programme, expected to be fully implemented by the end of 2027. The program is designed to bring us back on track toward our ambition of continuous profitable growth,” adds Jimmi Mortensen.

A focused effort to strengthen the core business
The transformation and integration programme, called Transform the CORE, is not only intended to simplify the business but also to fully leverage the synergies between the different business units. Particular focus is placed on the full integration of the upholstery production sites in Poland and Lithuania, represented by the two brands SITS and Flexlux.

During the financial year 2024/25, significant steps have been taken towards a simplified business model, with a focus on optimizing capacity within individual units. These changes include the closure of the manufacturing site in China and the relocation of the sourcing centre in China, which continues to serve as the largest exporter of volume products to the more than 90 countries Actona Group supplies. In Europe, the focus is on centralizing production capacity for customized products with short lead times.

“We are beginning to see the first early signs of impact from the programme, and we remain confident in the continued positive effect of the transformation efforts. The program will also contribute to a significant enhancement of our market offering, meaning that in the financial year 2025/26 we will introduce a range of new product lines across our three brands – Actona, SITS and Flexlux,” says Jimmi Mortensen.

To further strengthen the position and relevance of the European brands Flexlux and SITS, a strategic collaboration has been established with the Copenhagen-based design studio Tadaima. Tadaima is known for timeless and durable designs made to be cherished for a lifetime and brings a strong commitment to preserving craftsmanship traditions.

Continued progress on sustainability
Throughout the financial year 2024/25, Actona Group has made significant progress in its sustainability efforts. The share of FSC-certified wood exceeded 90 percent, marking an important step toward the goal of achieving 100 percent certified wood across all operations. In addition, Actona Group achieved a substantial reduction in greenhouse gas emissions within Scope 1 and 2 – by more than 10 percentage points compared to the previous year.

This underscores the Group’s continued commitment to taking responsibility while ensuring operational efficiency.

“We expect to continue navigating a challenging market, with potential volume declines over the next one to two years. At the same time, we continue to see a very fragmented and unconsolidated market presenting several opportunities. This gives us confidence in the direction we are heading, together with our strong partnerships, which remain one of the cornerstones of our future success,” says Jimmi Mortensen.