Flying Tiger Copenhagen: Solid revenue must translate into a strong bottom line
May 27, 2019
A solid turnover of DKK 5.6 billion and an operating result of DKK 257 million are among the highlights of Flying Tiger Copenhagen’s annual report for 2018. The bottom line is not satisfactory, but the management as well as the owners have full confidence in the unique DNA of the Danish retail chain, and they believe that the consolidation strategy now initiated will deliver results also on the bottom line. The first four months of 2019 live up to the budget both on revenue and earnings and it also shows a positive like-for-like growth.
Flying Tiger Copenhagen’s customers have never on average purchased as much as they did in 2018. In the annual report published today for 2018, the Danish retail chain presents a strong turnover of DKK 5.6 billion and an operating result of DKK 257 million. It is a testimony to the strong DNA, characterised by unique products and a shopping experience that inspire customers all over the world.
While many players in the retail market are experiencing decreasing revenues, Flying Tiger Copenhagen’s sales activities in the stores are steady, showing an almost unchanged like-for-like growth for 2018. The first four months of 2019 also live up to the budget both on revenue and operational earnings and it also shows a positive like-for-like growth of 1.2%.
The first four months of 2019
As announced in January, the final result is not satisfactory. The bottom line shows a negative result of DKK
-541 million, and therefore a thorough consolidation and transformation process was initiated at the end of 2018. After five years of expansion, where a new store opened every third day, the focus is now on making the whole organisation more profitable. This should result in the positive figures on the top line also being reflected to a higher extent in the bottom line.
“Naturally, the result on the bottom line is not satisfactory in itself, but it is very important to stress that this does not in any way reflect the full picture of the situation in Flying Tiger Copenhagen. For example, 40% of the negative result is due to a technical change in the accounting reporting compared to 2017. In short, it is not money going out of the company.
When looking at the operations, we are presenting a record in revenues. We have flat like-for-like sales and we are showing a positive operating profit. I am convinced that most of those operating in the current retail market envy us for our like-for-like sales. The owners and I have full confidence in Flying Tiger Copenhagen’s concept and business being healthy and sustainable, which is testified by our results over the first four months in 2019”, CEO Martin Jermiin says.
The CEO is now looking forward to unfolding the consolidation strategy in 2019, which will represent a year of stabilisation:
”Any consolidation process comes with short term costs, but in the long run it will demonstrate its rationality. We are in the middle of an optimisation of the operations in our stores and in our support functions, and we already now see positive results. In plain language, we are cleaning up. In the warehouses, in the main offices and in our stores. It’s about optimising costs, consolidating our store network, strenghtneing our supply chain, improving our existing stores and lastly it’s about developing our DNA and concept”, Martin Jermiin continues.
About Flying Tiger Copenhagen
• Founded in 1988 by Lennart Lajboschitz, today Martin Jermiin is CEO
• Revenue for 2018 equals DKK 5.6 billion
• Introduces 300 new products each month
• Counts more than 6,000 employees globally
• 990 stores in 30 countries and in 3 continents (Europe, Asia and USA)
• 77 stores in Denmark alone
• Offers everything from party items, home decor, children toys, gadgets, gift ideas to prize winning design.
For further information please contact:
Nina Brønden Jakobsen