New Flying Tiger Copenhagen strategy ensures satisfactory 2019 result
July 15, 2020
The retail chain’s consolidation strategy made serious headway in 2019. With 41% growth in adjusted EBITDA compared with the previous year, Flying Tiger Copenhagen is on track to become a profitable business.
After some years of unsatisfactory results, Flying Tiger Copenhagen is now pleased to announce a considerably improved operating result.
In its financial statement for 2019, the Danish retail chain announced revenue of DKK 5,226m and EBITDA of DKK 409m.
Despite a bottom line of DKK -75m, and a slight 0.5% decline in revenue, CEO Martin Jermiin is satisfied with the progress in the retail chain’s activities.
“After years of successful international growth, where we in some years opened a new store every three days, in 2019, we put our aggressive growth plan on hold to consolidate and ensure profitability. This means that we have focused on optimising operations at our stores and reducing costs, so that we can build up a stronger, healthier and more profitable store portfolio. The positive development in the 2019 financial statement testifies that our efforts are paying off. The result is therefore not just satisfactory, it also gives us confidence in our ability to deliver an even better performance in the future,” says Martin Jermiin, CEO of Flying Tiger Copenhagen.
As a consequence of COVID-19, and based on a precautionary principle and orders from local authorities, Flying Tiger Copenhagen chose to temporarily close the vast majority of their stores.
At the peak of the pandemic, Flying Tiger Copenhagen received a capital injection of DKK 650m from the owners and their banks. This has ensured that the retail chain can weather the effects of coronavirus crisis well, while continuing to implement the consolidation strategy and roll out its new e-commerce platform.
“Like everyone else, we have also felt the effects of COVID-19. Before the pandemic broke out, we were ahead of our expectations for 2020, but the virus forced us to temporarily close a very high proportion of our global store portfolio for a period. Closed stores are naturally never good for a business like ours. Our owners trust in our concept and strategy, and they have ensured that we can continue our work on developing our business – also online,” says Martin Jermiin.
In January 2020, Flying Tiger Copenhagen launched its first online store in Denmark. The plan is to roll out the concept to more European markets.
“We want to be where our customers are. Our online store is a comprehensive and carefully prepared initiative that has exceeded all our expectations in Denmark. In May, the concept was launched in Sweden – also with great success. Now we are preparing to roll out our online universe to more European markets in the course of 2020,” says Martin Jermiin.
About Flying Tiger Copenhagen
- Founded in 1988 by Lennart Lajboschitz, the company is now led by CEO Martin Jermiin
- Flying Tiger Copenhagen is owned by the company Zebra A/S, which is headquartered at Strandgade 71-73 in Copenhagen, Denmark, and the private equity fund EQT as principal shareholder
- Revenue in 2019 totalled DKK 5.2bn
- Approximately 6,000 employees worldwide
- 909 stores in 27 countries in Europe and Asia
- Supplies everything from party decorations, home accessories and children’s toys, to gadgets, attractive gifts and award-winning product designs
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