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Furniture maker Vilniaus Baldai may have difficulty maintaining sales growth

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Lithuania's Vilniaus Baldai (Vilnius Furniture) may find it difficult to keep the strong sales growth it achieved last year, the business daily Verslo Žinios reports.

The company, which manufactures furniture for Sweden's Ikea, feels that competing with producers from other countries becomes increasingly difficult.

"Ikea's sales continue to grow, so there are opportunities. It all depends on how well we use them," Vilniaus Baldai CEO Aidas Mackevičius says.

Last year, Vilniaus Baldai remained Lithuania's biggest furniture manufacturer as annual sales revenue jumped by almost 21 percent to a record high of 238.4 million litas (EUR 69.1 m).

This year, the company may have difficulty maintaining this growth rate, Mackevičius says.

Vilniaus Baldai sells 98 percent of its products to Ikea and makes annual production forecasts. However, the CEO of the company, which is listed on the Vilnius stock exchange, would not disclose either detailed forecasts for this year or exact investment plans.

Vilniaus Baldai, which is majority owned by Invalda, had a workforce of 456 at the end of 2011.

BNS
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