Tomas Mauricas, the Head of Kauno Baldai, says: „European demand for furniture is recovering slowly from stagnation, and we do not foresee a rapid recovery in the near future. Manufacturers are still facing challenges, but we managed to expand last year through long-term commitment, new trading partners and increased outlets. The strongest sales growth was in Scandinavia, up 19 per cent. In Benelux and Germany, the growth was more moderate – around 7 per cent each“.
According to him, despite the challenging economic situation in Germany, the company plans to grow the fastest in this country, aiming to increase sales by at least 20 per cent in 2025. Additionally, the number of orders has risen significantly in Norway. In other countries, sales are expected to grow more moderately. T. Mauricas states that current order trends indicate that Kauno Baldai should sell approximately 30 per cent more products this year due to increasing retail locations.
T. Mauricas predicts: „With demand for furniture still not having returned to a significant growth path, prices for most raw materials have stabilised or fluctuated slightly. However, no matter how much we invest in production efficiency, with rising wages, logistics and energy costs, manufacturing companies are running out of reserves to cover rising costs at the expense of business. Therefore, the pressure to raise product prices increases slightly as production costs rise. I would not rule out the possibility that, for these reasons, furniture manufacturers may adjust their prices this year“.
The upholstered furniture manufacturer Kauno Baldai exports 100 per cent of its products. Sales in the Benelux countries and Scandinavia account for approximately one-third of the company's revenue.
