“We maintain a rapid pace of growth. Signals of slowing demand in Europe and a potential recession of the German economy have yet to have any influence on our operations. Last year, we firmly entered the largest continental European market in Germany and the revenue share from it grew to a tenth,” says Tomas Mauricas, CEO of the SBA company Kauno Baldai.
According to him, sales in the company’s traditional markets of the Netherlands and Scandinavia also saw double-digit growth. This year, Kauno Baldai intends to continue increasing its export into these markets and double its sales in Germany, where it has already found reliable trade partners.
Annual double-digit growth over the past three years has seen the sales of Kauno Baldai almost double. According to T. Mauricas, a long term foundation for the company’s growth was established by the turn from commissioned production to collections created by the company itself. Over three years, the company increased the share of its collections from 48% to 75%. These proportions are to be maintained this year as well.
“Our strength is the product we make because Western customers seek exceptionality and non-standard furniture models. To them, we are a new and interesting manufacturer, which sells most of its products under its own brand. Thus we hope that Kauno Baldai’s results for this year will not be massively impacted much by forecasts of a looming recession and that this year we will maintain a double-digit figure of sales growth. Of course, it would be impossible without proactive direct work with potential clients in the export markets and our professionals in production,” T. Mauricas says.
Kauno Baldai exports 100% of its production to Western Europe. This is sold by major retail networks and internet stores in the Benelux and Scandinavian countries, as well as Germany. The Kaunas-based company employs over 350 staff.
The SBA Group is one of the largest Lithuanian business groups, operating in real estate, textile and furniture manufacturing sectors. The group’s companies employ close to 5,000 employees. The furniture sector is comprised of the SBA Furniture Company, which manages Klaipėdos Baldai, Šilutės Baldai, Germanika, Visagino Linija, Mebelain and Kauno Baldai. The SBA textiles sector is comprised of the innovative apparel manufacturer Utenos Trikotažas together with the companies Šatrija and Mrija. SBA also owns the real estate innovation company Urban Inventors, which is developing the Green Hall business valley in Vilnius and the BLC business centre in Kaunas, also the investment management company Capitalica Asset Management, which manages the Kaunas based business centre Kauno Dokas, the Vilnius based 135 and will develop the modern office compound Verde in Riga’s Skanste area close to the city’s centre. SBA has also established SBA Modular, which plans to build a factory in Lithuania and produce modular multi-storey houses. Also, the group has recently acquired the robotics and automation solutions company Robotex.