Gabriel_Annual_Report_2024-25 - Flipbook - Page 12
CONTENTS // MANAGEMENT COMMENTARY // FINANCIAL REVIEW
In 2024/25, additional resources were added only to
a limited extent. The Group nevertheless increased its
efforts and strengthened its market position. The resources added were allocated to only a few, but significant areas and supplemented by an increased effort in
the marketing process. This has made the Group’s sales
processes more efficient and product and brand communication more targeted and precise.
The European fabric business delivered growth in the
year under review as a result of increases on almost all
markets. The growth is a result of several years’ investments in sales development and marketing position
throughout Europe and a highly satisfactory execution
of the Group’s sales strategy. After a number of years of
solid annual growth, the SampleMaster business unit in
Europe realised a small decrease in revenue. However,
the revenue decrease in Europe is counterbalanced by
an increase in North America, where the business is now
well-established.
In 2024/25, the North American market delivered a
marked increase in revenue, as a result of the longstanding efforts to establish Gabriel in both the USA
and Canada.
For several years, the Group has added resources to
develop the Asian market, with China as the hub. It
is thus satisfactory that marked revenue growth was
realised in 2024/25.
Management assesses that realised growth in the continuing operations is the result of a strengthened market
position following increased efforts and continued good
execution of the sales and marketing strategy. The total
efforts made during 2024/25 are realistic grounds for
expectations of continued growth.
Product development, business development
and innovation
Gabriel’s “product and process innovation” covers the
entire process from concept to finished product and
continued to be a high-priority core process in 2024/25.
Investments in innovation and development (which are
recognised under intangible assets in the statement of
financial position) were DKK 6.9 million for continuing
operations in the 2024/25 financial year (DKK 6.9 million
in the previous year), equivalent to 1.3% of revenue (1.2%
in the previous year).
New products and solutions are being developed in
coordination with the Group’s most important customers.
Customers’ future needs are identified through research
and analyses of market trends that form the basis for
both technological and product development. These coordinated initiatives increase the accuracy of targeting
and reduce the time to market of products, solutions and
services to be launched.
Product development and innovation are anchored
centrally but take place in all of Gabriel’s strategic business units, which collectively support the Group's core
process of product and process innovation. A structured
and documented development process is applied to
identify the individual products’ market potential. The
process exploits the value of a coordinated joint effort
targeting the market’s leading furniture manufacturers.
For a number of years, Gabriel has set targets for launching a substantial number of new fabrics on the world
market. In 2024/25, the portfolio of globally competitive
fabrics was further expanded. Six new fabrics were thus
launched and one existing product was updated with a
view to securing further growth. SampleMaster forged a
major number of new customer partnerships, many as
a result of development work. The target for new products’ share of revenue is at least 30%, but amounted to
only 16% because several major projects reached their
five-year age limit. Gabriel continues to focus on supporting growth through product development and innovation where product strategies are adjusted to the
development of the business and market.
One of the newly launched fabrics is a product that
further develops the innovative circular “Gabriel Loop”
product platform. Gabriel Loop is a unique combination
of product and value chain innovation. The products are
not only designed to be recycled, but are also produced
in a unique collaboration along the value chain where
textile waste is recycled in yarns and new fabrics. The introduction of Cura Loop expands the Gabriel Loop platform and technology with an innovative product based
on 100% recycled textile waste, thus marking yet another
important step in the continual development and innovation of circular materials solutions.
horizon and comprise both internal research and collaboration with external partners, universities and research
centres. In 2025, the externally financed innovation project
UnBlend was started up with support from Innovation
Fund Denmark and Trace. The project aims to explore
and develop new methods of recycling high-quality materials, with special emphasis on preserving the value of
the materials in new circular processes.
The innovation projects offer significant – if uncertain –
potential earnings and focus mainly on the development
of technical solutions, new fabrics and related products
intended for use on Gabriel’s existing value chain.
Targeted communication of Gabriel’s innovation and
development strategy has forged and retained close
relationships with selected furniture manufacturers’
designers, development teams and decision makers.
The DesignMaster business unit in Aalborg and the development department in Beijing regularly engage in
design-based development and consultancy based
on customers’ and end-users’ wishes and needs. This
requires a thorough understanding of the market and
targeted research.
Outlook
Management expects that the challenging market conditions affecting the furniture industry will continue in the
2025/26 financial year, primarily as a result of continued geopolitical risks and these risks’ impact on international demand.
The ShapeKnit business area offers unique customised
solutions through innovative three-dimensional knitting
technology. The design and development process is
based in innovation centres in Bingen and Aalborg and
at UAB Gabriel Textiles. Production takes place mostly
at UAB Gabriel Textiles.
However, continuing business operations delivered
growth in revenue and profit for the 2024/25 financial year and management expects that this trend will
continue.
Based on Gabriel’s total strategy for design and product
development, innovation and sustainability, the work
of developing new products is carried out across disciplines. The Group also works on production innovation projects that enable increased differentiation of
the value offer. These projects often have a longer time
On this basis, revenue of DKK 510 - 550 million (0 - 10%
growth) and operating profit (EBIT) of DKK 40 - 55 million
(DKK 44 million in 2024/25) are expected.
A high level of uncertainty surrounds the expectations for
the year, primarily as a result of the above-mentioned
market risks.
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