Louis Poulsen A/S

Annual Report 2016

Copenhagen, April 7 2017

2016 was a year of great progress for Louis Poulsen

Louis Poulsen made great progress in 2016 based on exciting new product launches, operational improvements and strong financial performance. Group revenue grew by 5% to DKK 750 million and EBITDA increased by 17% to DKK 104 million, corresponding to an EBITDA margin of 14%. Significant investments were made in accelerating growth in the coming years, and Louis Poulsen expects further revenue growth and a positive development in EBITDA in 2017.

Total revenue increased to DKK 750 million (2015: DKK 716 million) with particularly strong performance across Scandinavia and Europe following targeted investments in expansion of the sales force in recent years. Furthermore, the efforts to reduce time-to-market for new products showed results in 2016 and allowed Louis Poulsen to offer customers new light fixtures at a faster pace, while simultaneously optimising the allocation of resources for design and manufacturing with a shorter running-in period. These improvements within sales and operations contributed to a significant increase in EBITDA to DKK 104 million (2015: DKK 89 million). Based on the positive earnings development, Louis Poulsen further reduced the group’s net interest-bearing debt to DKK 110 million (2015: DKK 189 million).

We continued the positive developments in 2016 and improved group revenue and profitability while simultaneously spending substantial resources on building a stronger business in the longer term. We are investing in our sales and marketing platform as well as research and development to boost revenue and enhance efficiency across the creative and manufacturing processes. In 2016, we successfully established 50 new shop-in-shops and reduced our average time-to-market for new products by 65%,” said CEO Christian Engsted.

During the year, Louis Poulsen streamlined the group’s organisational setup in several markets and continued the expansion of the sales force to accommodate demand from both residential and professional customers. In addition, further efficiency measures were initiated within the areas of internal logistics, quality, assembly and painting to continue the positive trend in the coming period.

“The future seems bright for Louis Poulsen with a solid point of departure for further development of our exciting product range and a positive business outlook for the coming years with favourable market projections in the high-end segment in mature and growth regions alike. We are aiming to win market shares by upgrading our distribution point network for residential sales with another 100 shop-in-shops in 2017 and strengthening our professional sales to retail chains and in the outdoor market in particular,” said CEO Christian Engsted.

Management expects continued revenue growth and improved profitability in 2017 based on the positive developments in 2016 and the outlook for the coming period.

Christian Engsted, CEO

 

Selected key figures and financial ratios

DKK’m

2016

2015

Revenue

750

716

EBITDA

104

89

EBITDA margin, %

13.9

12.4

Total equity

278

247

Net interest-bearing debt

110

189

Employees, end-2016

393

418

 

We design to shape light

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, Oslo, Los Angeles, Tokyo and Dusseldorf. We design to shape light.

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