Gabriel_Annual_Report_2024-25 - Flipbook - Page 4
CONTENTS // MANAGEMENT COMMENTARY // SUMMARY
Gabriel delivers solid improvement of its key figures and ratios in a financial year when
continuing operations deliver revenue growth and a marked increase in profit, while
discontinued operations are strengthened in Europe and restructured in Mexico.
Summary
The Gabriel Group delivered revenue of DKK 902.7 million
in the 2024/25 financial year compared to DKK 912.3
million in the 2023/24 financial year. Operating profit
(EBIT) was DKK 28.2 million in 2024/25 compared to DKK
10.9 million in 2023/24.
The external forensic investigation of the irregularities that
were found and corrected in the consolidated financial
statements and parent company financial statements
for 2023/24 was completed.
Realised results are attributable to a steep increase in
continuing operations, continued strong performance
by the FurnMaster business in Europe, but also from anticipated negative results in the FurnMaster business in
Mexico caused by the ongoing restructuring.
In 2024/25, continuing operations delivered revenue
of DKK 516.0 million (DKK 483.5 million), equivalent to
growth of DKK 32.5 million (7%). Operating profit (EBIT)
was DKK 44.1 million (DKK 19.7 million). In addition, continuing operations delivered the following financial highlights (comparative figures in parentheses):
Given the geopolitical conditions and the ongoing restructuring of the Mexican FurnMaster business unit,
market growth has proved challenging, but the development in both revenue and profit is satisfactory.
Gabriel announced in August 2024 that it intended to sell
the FurnMaster business units. They were consequently
accounted for as discontinued operations in the 2023/24
annual report. The divestment was not completed in the
2024/25 financial year, mainly as a consequence of temporary external impacts on the global M&A activity level.
The identified irregularities in the Mexican unit and their
consequences naturally also influenced the outcome of
the attempt to sell this unit. The FurnMaster business units
remain classified as discontinued operations and assets
held for sale, because management expects that a sale
can be achieved in the 2025/26 financial year.
See note 9 for a description of discontinued operations.
• EBITDA margin was 16.2% (11.7%)
• Operating profit (EBIT) was DKK 44.1 million (DKK 19.7
million)
• EBIT margin was 8.5% (4.1%)
• Profit before tax was DKK 33.8 million (DKK 4.0 million)
• Profit after tax was DKK 24.8 million (negative DKK
1.5 million)
• Cash flows from operating activities in the Group were
DKK 119.7 million (DKK 37.3 million).
The increase in the continuing operations derives from
growth realised by the global fabric business in North
America, Europe and Asia, while SampleMaster realised
revenue on a par with the previous year.
In the annual report covering the 2023/24 financial
year, management stated that it expected revenue
from continuing operations of the order of DKK 485 530 million and operating profit (EBIT) of DKK 20 - 30
million in 2024/25. During the year, the expectations for
operating profit (EBIT) for the year were upwardly adjusted three times while the revenue expectations were
specified during the year.
Realised operating profit (EBIT) of DKK 44.1 million from
continuing operations exceeds management’s expectations for the full year and is a result of targeted efforts
to improve productivity.
In addition to the above development in the company’s
operations, the financial year was marked by the external forensic investigation initiated as a result of the identified irregularities in the Mexican FurnMaster company
and the consequent corrections made. The conclusions
to the investigation are set out in the financial review,
on page 11 of this annual report.
Expectations for the future
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.
However, continuing business operations delivered
growth in revenue and profit for the 2024/25 financial year and management expects that this trend will
continue.
On this basis, revenue of DKK 510 - 550 million and
operating profit (EBIT) of DKK 40 - 55 million are expected
from continuing operations.
As in previous years, a high level of uncertainty surrounds
the expectations for the 2025/26 financial year, primarily
as a result of the above-mentioned market risks.
The Board of Directors recommends the following to the
general meeting of Gabriel Holding A/S, to be held on
11 December 2025:
• Approval of the annual report for 2024/25
• Submission of the remuneration report for an advisory vote
• Distribution of a dividend of DKK 5.00 per DKK 20 share
• Approval of the remuneration of the Board of Directors
for the current financial year
• Re-appointment of Søren Mygind Eskildsen, Hans O.
Damgaard, Søren B. Lauritsen and Randi Toftlund
Pedersen as board members.
• Election of EY Godkendt Revisionspartnerselskab as
the company’s auditors
• Authorisation of the Board of Directors to permit the
company to acquire treasury shares at a total nominal
value of DKK 7,560,000, the equivalent of 20% of the
company's share capital
• Approval of amendment to the articles of association.
The official annual report is published on the company’s website. As part of the Group’s sustainability efforts,
there will be no printed version of the report.
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