Last year’s sales are the largest in the nearly 30-year history of the group’s existence, and the consolidated net profit of the SBA Group grew 70 per cent in that period, growing from 8.2 to almost 14 million euros.
“2019 was a successful and vigorous year for the SBA Group. Our companies grew their sales in global markets, and we also expanded the geography of our markets. We continued significant investment in existing and new projects and obtaining new businesses. Our motivated and ambitious team, investment in people, effective process management, robots and other innovations led to this final result of the entire group’s operations,” SBA Group VP Jolanta Grašienė says.
Growth in all sectors
The companies of SBA Group operate in three main sectors – furniture manufacturing, textile and real estate. They all saw revenue growth last year.
The largest in the Baltic States, the SBA Group furniture sector increased its sales by 11 per cent in 2019 and also reached its historic best result with almost 318 million euros. Klaipėdos Baldai, Visagino Linija and Mebelain also saw double-digit sales growth as the soft furniture manufacturer Kauno Baldai, which has been entering new markets in Western Europe, saw its revenue jump by a fifth.
Last year, operations developed intensively in the SBA real estate sector, seeing 47 per cent increased total income, reaching 13 million euros. Last year, the SBA company Urban Inventors completed developing its business Centre BLC in Kaunas near Unity Square, which was renewed by SBA. This year also saw intensive development and completion of the business centre Green Hall 3, and SBA Technology and Innovation Park logistics centre’s constructions were also launched and completed. The group’s company Capitalica Asset Management completed the second stage of development for the business centre Kauno Dokas, and began developing the central Riga business centre Verde.
The combined rental space of the SBA real estate sector (Urban Inventors companies and the Capitalica Asset Management fund) grew by 40 per cent over the course of the year, and by the end of 2019 reached almost 63 thousand square metres. Most of this space was already leased out or reserved.
The SBA textile sector group Utenos Trikotažas saw its consolidated sales reach 30.79 million euros in 2019, which is a little higher than the year before with 30.46 million euros. The textile group’s functional-technical clothing manufacturer Šatrija recorded 9.1 per cent revenue growth, and its production was worth 3.69 million euros over the year.
New projects in the future
Last year, the SBA group invested almost 60 million euros into new projects, expanding capacities and advanced technologies, which is a third more than in 2018.
“Even during the pandemic, we continued intensive negotiations on several new projects, which would continue to expand the SBA Group’s scope and spectrum of operations globally. Yes, the pandemic will leave a scar on the group’s results this year, but we have mobilised and rallied to ensure it is as small as possible. If the world successfully combats the virus and if we avoid a second wave, already next year we expect ample growth,” J. Grašinė states.
According to Grašienė, the pandemic has also slightly adjusted previous business development plans, however, they are not being abandoned. This year, it is planned to complete the furniture component factory Laminn, which is being built in SBA Technology and Innovation Park, and Kauno Baldai continues to actively analyse opportunities for expansion.
Other companies in the furniture sector are expanding their capacities and seeking new opportunities as well. The robotics solution company Robotex, which SBA purchased last year, is also planning expansion into foreign markets. Last year, SBA also established SBA Modular, which aims to construct sustainable modular multi-storey buildings.
