It was at the beginning of the year that Ehandel.se reported on the record-breaking investment rain over the men's fashion company John Henric, when the venture capital firm eEquity stepped in with new capital. Preliminary estimates for the financial year were then presented, but now the company's official and revised annual report has been established with Bolagsverket (the Swedish Companies Registration Office).
The final figures show a historically strong result for the men's fashion brand. Net sales increased during the year by 14 percent to just over SEK 261 million, up from just under SEK 230 million the previous year.
At the same time, profitability exploded. Operating profit quadrupled to just over SEK 17 million, compared to SEK 4.3 million the year before. This is a profit increase of 301 percent.
Strengthened krona and margin focus
John Henric, which sells accessories and clothing for men through its own stores and e-commerce, navigated a market characterized by cautious consumers during the year. In the management report, the company writes:
The Swedish krona strengthened against both USD and EUR, which gradually contributed to improved purchasing conditions. At the same time, several of the company's markets were characterized by continued cautious consumers, which meant a continued focus on efficiency, margins and cost control.
According to management, the improvement in results was driven primarily by a strengthened gross margin, good cost control and the impact of previously implemented investments in the company's infrastructure.
Reinvesting all profits
The success on the bottom line is also reflected in the result after financial items, which increased to almost SEK 17 million, while profit after tax more than tripled to SEK 9.6 million. To meet the expansion, the workforce has grown from 51 to 61 employees.
Despite the significant profit increase, the owners have chosen not to take any money out of the company. According to the annual general meeting, zero krona will be distributed in dividends, with all of this year's profit being balanced in the new account and reinvested to continue building the brand internationally.