One of Poland's leading furniture retailers – Black Red White – has released its financial data for 2023. The report shows that 2023 was not kind to the company.
Compared to 2022, the company's revenues decreased by almost 14%. The decrease mainly concerned the domestic market – economic uncertainty and the macroeconomic situation in 2023, including high inflation, high interest rates resulting in an increase in the costs of servicing financial liabilities – translated into postponing purchase decisions regarding furniture for the future. This thesis is confirmed by the statistical data of the Central Statistical Office, in which the category "furniture" (presented together with RTV and household appliances) is one of the categories that recorded the greatest regression in retail sales year on year.
Black Red White: Average employment reduced by more than 10%
The company reports that in terms of type, the largest decrease in costs concerned the consumption of materials and energy, which are mostly variable in nature, related to the volume of sales. In the case of external services, costs decreased by 3% – in 2023 there was a change in the sales structure and an increase in the share of sales to contractors for whom the company bears the transport costs. The company's results were negatively affected by the increase in employee costs, including the minimum wage (+16% in the first half of the year and +20% in the second half of the year compared to 2022) – employee costs decreased by 6% compared to the previous year, while the average employment decreased by over 10%. At the same time, an increase in public and legal charges was noted – costs
taxes and fees increased by 3% in 2023.
Net loss of PLN 89.6 million
These factors contributed to a significant deterioration in the company's sales result, which for 2023 ended with a sales loss of PLN 93 million.
Financial costs increased by PLN 9 million year-on-year; interest rates were increased several times in 2022, the annualized effect of which materialized in 2023.
The company generated a gross loss of PLN 99.7 million and a net loss of PLN 89.6 million.
Black Red White SA is the parent company in the Black Red White Group. The company determines the Group's development strategy and exercises ownership supervision over all subsidiaries. It also plays a key role as the largest manufacturing entity in the Group and as the entity managing furniture wholesale in the Black Red White Group.
Black Red White SA is one of the largest manufacturers of cabinet furniture in Poland (i.e. furniture for which the basic production material is chipboard and its derivatives) for self-assembly. The company manufactures furniture based on its own resources and machinery. The group also sells furniture from other manufacturers.
