Warsaw (Puls Biznesu) – Hard times for many
furniture producers are approaching. Strong zloty is the reason.
When Grajewo published poor third quarter results, the board producer said it
was because of falling orders from furniture producers operating in Poland.
According to Grajewo estimates, furniture companies cut production in the first
quarter by 20 percent. The main reason was falling profitability of exports
disturbed by appreciating zloty.
“The situation in exports is not bad, it’s very bad”, Jacek Zdybel, deputy
CEO of Paged Meble admitted.
His company re-directs part of sales to the Polish market.
“Upcoming years will be very difficult because the Polish market won’t be
able to absorb the production of the whole sector”, Jacek Zdybel added.
Swarzedz furniture producer says that year-on-year sales have been growing so
far but it is partly because last year was very poor.
“We expected sales in Poland would grow higher. It’s harder to restructure
the company now”, Lukasz Stelmaszyk, Swarzedz CEO said.
He adds that rivals limit exports and struggle in the Polish market.
“If 85 percent of the furniture produced in Poland is exported, we should
expect production decrease when the exchange rate is so unfavorable. It’s hard
to say how big the decrease will be”, Lukasz Stelmaszyk explained.
Maciej Formanowicz, the CEO of the National Chamber of Furniture Producers
and of listed Forte company, calms down.
“Grajewo might have seen its sales fall but it does not mean that furniture
producers cut output. Competition among board producers is bigger and you must
simply get used to this”, Maciej Formanowicz said.
He admits, however, that the situation in the furniture sector is tough.
“Especially in exports. Forte sales realized in euro are even higher than a
year earlier but of course it looks slightly worse when counted in zloty”,
Maciej Formanowicz explained.