Embellence Group as an investment

Favourable growth and high profitability

Embellence Group’s net sales rose 4.3% on average between 2019 and 2021 and amounted to MSEK 646.9 at the end of 2021. During the same period, the gross profit margin remained stable at around55%, while the adjusted EBITA margin rose from 13.2% to 15.4%. The main drivers of this improved profitability included a stronger focus on the premium segment and cost efficiencies.

Strong brands

Operations at Embellence Group are based on a portfolio of strong brands, all with a premium or luxury position in their respective niches. The common denominator is that consumers, architects and interior designers all over the world consider these brands relevant. Investments are continuously made in the portfolio, with a focus on premium design, high-quality products, online and offline inspiration, and a high level of service.

Strong market position

Embellence holds a strong market position and is a market leader in all home markets. In Sweden and Norway, the market share in the premium segment is 43% and 63%, respectively. In the value segment, the estimated market share is 47% and 42%, respectively. In Italy, the estimated market share in the premium segment is 23%, primarily through Wall&decò. The corresponding figure for the UK is 29%.

Successful focus on premium

By continuously investing in marketing, innovation and design – com­bined with acquisitions of international brands – the share of total sales attributable to premium has gradually increased in recent years. Com­pared with other segments, the premium segment shows higher growth and higher gross profit margins.

Extensive design archive

Embellence’s combined design archive consists of around 10,000 designs from different eras and representing different styles. Overall, this offers good opportunities to remain relevant throughout different cycles and trend shifts. The archive includes both proprietary designs and in-licensed designs created by external designers.

Broader range

The extensive design archive enables expansion into other segments of the interior decoration market, including textiles, cushions, blankets and trays. All brands have commenced work in this area that will con­tinue throughout 2022.

Geographic expansion and growing share of international sales Embellence’s brands are sold in more than 90 countries, and there are also showrooms in Milan, London and Cologne. The company has been working actively to increase the share of international sales for some time. In 2021, Europe and Rest of World accounted for nearly 50% of net sales.

Well-invested production facilities

The company’s largest production facilities are located in Borås, Sweden and Cervia, Italy. The facility in Borås has been upgraded in recent years by investing in more efficient flows and better conditions for digital printing. The facility in Cervia became operational in summer 2021 and is state-of-the-art in terms of efficiency and productivity.