German kitchen furniture manufacturer Rotpunkt has reported a turnover of 100m euros in 2023. Andreas Wagner and Heinz-Jürgen Meyer, managing partners at Rotpunkt Küchen, said: "In view of the extremely difficult market conditions that followed the enhanced demand of Covid-19, this is a very satisfactory result." Sven Herden, MD of sales & marketing added: "Of course we would like to achieve more growth in turnover but, given the widely reported economic downturn and inflation, I feel these results are realistic for the beginning of the year."
Rotpunkt’s turnover has steadily risen over the last 5-10 years, seeing an increase of over 35m euros when compared to 2018 figures at 65m euros. The company said that the continued rise in materials and energy prices challenged its business operations in 2023. However, it was able to limit these amplified costs with moderate price adjustments so it could maintain its standing as a strong multimillion-pound company with positive earnings. It continued to invest in a new warehousing & logistics building, and also in machinery, logistics, its vehicle fleet, the digitalisation of production and business processes, as well as social issues for the Rotpunkt workforce.
The company said that business across the British Isles has been faced with particularly high inflation rates, when compared to the rest of Europe and these increases have slowed the level of growth in the UK. In response, Rotpunkt will invest in its sales and development team to promote a greater level of engagement from new and existing customers. Given that the UK is regarded as one of the largest markets in Europe, it seems only logical to accelerate investment across these sales territories.
In a statement, the senior management team concluded: "The market is tough right now and in the short term, forecasts show this financial year won’t get any easier. However, we can still offer a positive outlook as 2024 has just begun and currently, there is a good build-up of orders, so we are confident over the coming months.” Sven Herden added: "At the moment, it is important to maintain Rotpunkt's good economic position, strengthen existing partnerships and take a closer look at choice suppliers and new business connections. However, risk assessments of this kind are not exclusive to Rotpunkt, and retailers are also looking closely at who they can rely on.”
