Strong results in a turbulent time

PRESS RELEASE - june 2020

Westpack A/S finishes the 2019/2020 financial year on a level with the previous year – despite the COVID-19 crisis, massive investments and an increased workforce – with pre-tax profits of DKK 28.9 million and EBITDA increased to DKK 32.4 million.

The Danish packaging group Westpack, with headquarters in Holstebro, has in recent years been able to present annual accounts showing profits that have gradually increased year after year.

On that basis, CEO Morten Dalsgaard is slightly disappointed that the 2019/2020 figures, which have just been published, paint a slightly different picture.

“When your profits increase year after year it is, of course, a shame to see a figure that on the surface shows a slight decline. But when you look at the broader picture, there is still good reason to be satisfied,” he says.

Before tax, the annual accounts for 2019/2020 show a profit of DKK 28.9 million compared to DKK 29.8 million the previous year, while the company has managed to increase its EBITDA from DKK 31.7 million to DKK 32.4 million.

“So, in a year when we have invested heavily, increased our workforce and, not least, been hit hard by the COVID-19 lockdown during the last four months of the financial year, we have nevertheless achieved a result on a par with previous years. It demonstrates robustness in our business model and in the company in general, so we can definitely allow ourselves to be happy with the result,” says Morten Dalsgaard.

New high-bay warehouse, more machinery and a larger workforce

During the past financial year Westpack has expanded its headquarters in Holstebro, with a new 4,300 sq. m modern high-bay warehouse, to increase efficiency in logistics even further. In addition, five new machines have been purchased and three more are on the way. The workforce has also increased in the past financial year, expanding from 87 to 103 employees. Westpack has furthermore invested in a new web shop and a new financial system.

“With this expansion in our capacity we have been able to bring home a previously remote storage facility and, with this, increase our efficiency. We have, at the same time, created additional space for our Danish production, and with our new machinery we will be able to manufacture even more products here in Holstebro,” says Morten Dalsgaard, who points out that the company’s business model – manufacturing in Denmark combined with purchasing of products and solutions in Asia (primarily China and Indonesia) – was the main reason why Westpack got through the first part of the COVID-19 crisis more or less unscathed, when China shut down.

“We first got hit as China shut down in January and February, but with our manufacturing and warehouse in Denmark we were still able to service our clients until China opened up again. But as the European markets shut down in March and for the next two to three months, we were hit a second time, as the retail business more or less disappeared from one day to the next. Of course, this has affected our financial statements this year and will also affect next year’s results,” says Morten Dalsgaard, but he remains generally optimistic.

“We are experiencing significant growth in our web shop. And we believe that, with the other investments we have made over the past financial year, we will continue to increase our growth and profits; and, looking at the first few months of the current fiscal year, we are already ahead of budget,” he emphasises.

Westpack A/S develops, designs, manufactures and sells standard and custom packaging for the jewellery, watches and eyewear industries. Clients range from small independent goldsmiths, watchmakers and eyewear stores to retail chains and global design brands. Manufacturing takes place partly at the headquarters in Holstebro and partly through their sourcing company in China, which is responsible for procurement, quality assurance and logistics in relation to more than 50 partners in Asia.

For further information please contact:

CEO Morten Dalsgaard, Westpack A/S, tel. +45 41 71 75 81 / email: [email protected]