High inventories and reduced consumer demand are being felt by the distribution company Witt in Gødstrup. Recently published financial statements show a turnover of 695 million and a profit of 18 million after tax. A 33% decrease in turnover compared to last year. But it's not so bad after all...
In 2022, Witt was hit by several external challenges that slowed growth. High inventories at retailers combined with a general decline in consumer purchasing interest created a kind of double negative effect for the company. High freight costs and exchange rates also played a significant role in the 2022 accounts because goods arrived in the Nordics at higher costs than expected. Additionally, there were still challenges with the delivery of certain components from factories.
Employee Retention and Increased Investment
On the other hand, 2022 was the year Witt embarked on a worldwide export journey with their own revolutionary pizza ovens with rotating stones, ensuring uniform, crispy baking and a double burner that retains heat and quickly bakes pizza after pizza.
Similarly, strategic acquisitions were made in a number of companies and partners. These include the companies Membantu, byKlipKlap, exs nordic, and CookPerfect.
“Despite the market downturn, we have chosen to retain our good employees and, in some cases, hire more. Additionally, we have chosen to invest in a new IT system, larger storage capacity, and new business areas. We believe this will add value in the long run,” says Claus Tange, CEO of Witt.
As the spearhead of their food concept, Witt opened a high-end gourmet restaurant in May 2022. In a spectacular Dome and with handpicked staff, 'Restaurant domæne' has gotten off to an exceptionally good start with many excellent reviews and inclusion in the exclusive 'White Guide Denmark'.
A new, exclusive training center also saw the light of day in Gødstrup. WittSTUDIO is a different fitness center staffed with physiotherapists and personal trainers, focusing on resistance training based on science. WittSTUDIO is intended to ensure employee well-being and function as a 'living showroom' for Witt's various sports brands.
Growth Strengthened
Although the market is generally affected by a lack of purchasing interest, Witt is optimistic about 2023. Witt's products are still in demand by consumers, and the strategic company acquisitions are expected to contribute to growth in the coming years.
“We are optimistic about 2023 both in terms of a more stable product flow with our retailers and because we have high expectations for our new brands Membantu, byKlipKlap, Cookperfect, and especially Witt ETNA Pizza Ovens, which are truly driving Witt's internationalization with customers throughout Europe – and beyond Europe,” says Claus Tange.
As part of the growth plans and increased focus on internationalization, Witt has established subsidiaries in both the Baltics and the USA. To ensure delivery speed in the new markets, Witt has also established storage facilities in North Carolina, California, and Latvia. Witt is no longer just a Nordic distribution house but has truly ventured into the global market and established itself as an international brand house.
