Management's review
Beskrivelse af virksomhedens væsentligste aktiviteter:Primary activities
LTP Group at a glance
LTP Group is a supply chain and manufacturing partner that works with premium garment and furniture brands. LTP Group has extensive experience in dealing with textiles for various products and collaborates with the customers to constantly improve the sustainable quality of production skills and services that guarantee the durability of the products supplied.
LTP Group partners with Sport & Outdoor Garment and Interior Furniture brands that share LTP Group's vision of being a quality-focused, creative, and value-creating industry leader.
LTP Group has adapted to the changing market since it started in the 1980s. As a global manufacturer, LTP Group operates 9 modern production sites in 5 countries.
LTP Group is a key link in the supply chain between material suppliers and the brands, providing vital services from the concept stage to the final product delivery.
Performance and progress
Following the exceptional growth of 2022, LTP Group faced a normalizing market environment in 2023 across both our Garment and Furniture divisions.
Garment division:
The Sport & Outdoor garment market experienced a continued decline in customer and consumer demand, compounded by high inventory levels within brands and retailers. Despite a 29% decrease in sales compared to the record-breaking year of 2022, the Garment division remains a leader in its sector, supported by a healthy 10% Compound Annual Growth Rate (CAGR) over the past decade.
Furniture division:
The European contract furniture market faced a general economic slowdown throughout 2023, impacting demand by an estimated 15%. LTP Group's Furniture division sales decreased by 11%. However, the division has maintained a strong foundation with a robust 10% CAGR over the past decade.
LTP Group actively cultivates a reputation as a reliable and adaptable partner for our customers, suppliers, and manufacturing partners. This commitment is backed by our financial strength and flexibility. Our entire team is dedicated to exceeding customer expectations by proactively finding solutions, ensuring on-time deliveries, and adapting to evolving industry needs.
We've transitioned our customer relationships towards a more comprehensive partnership model. This collaborative approach focuses on securing production capacity, optimizing the supply chain, fulfill sustainable needs of tomorrow and jointly balance financial risks.
Despite the market challenges, the impact of the war in Ukraine, LTP group managed to deliver revenue of DKK 0,9 billion. This corresponds to a decrease of 22% compared to 2022.
Strategic priorities
It is LTP Groups vision to be #1 preferred manufacturer in the market segments we operate, preparing for bold decision to expand the scope of business. To excel in a constantly evolving environment, embrace the unknown of tomorrow by building a resilient, agile, innovative, global, and scalable organization comprised by empowered, dedicated and responsible employees.
LTP Group's success is built upon the dedication and expertise of our global workforce. Our employees are the driving force behind our ability to deliver exceptional value to customers, foster innovation, and achieve sustainable growth. We recognize the importance of personal development and fostering strong human connections. LTP Group is committed to cultivating a positive and inclusive company culture that empowers our employees and embraces diversity.
LTP Group has a presence in 6 countries, with the Danish headquarter as the strategic center. The global locations help customers with nearshoring and provide a flexible way to ensure high quality, capacity, and innovation platforms in Europe, Asia, and North America.
LTP Group is strategically investing in technology across our entire operation – manufacturing, logistics, sales, and administration. This focus on data, advanced analytics, and digital solutions drives continued growth, scalability, and a more resilient business. These digital advancements benefit all LTP Group partners. Optimized processes improve efficiency and collaboration, while data-driven insights empower better decision-making. Technology is critical to achieving our sustainability goals. By leveraging data and 3D design technology, we foster eco-friendly innovation. This empowers us to collaborate with customers and reduce their environmental footprint throughout the supply chain.
LTP Group is deeply committed to driving positive change in the industries we serve. We go beyond being a production partner – we believe in creating products that are both functional and long-lasting. To truly embed this commitment, sustainability is woven into the very fabric of our operations, values, and company culture.
Recognizing its critical importance, we have made sustainability a core pillar of our corporate strategy. This translates into four key areas of focus:
- Care for People: We prioritize the well-being of our employees and the communities we touch.
- Embrace Circularity: We champion sustainable practices throughout the product lifecycle, minimizing waste and maximizing resource use.
- Fight for Climate: We actively seek solutions to reduce our environmental impact and combat climate change.
- Unlock Transparency: We believe in open communication and fostering a transparent supply chain.
By focusing on these core commitments, LTP Group aims to be a leader in sustainable manufacturing practices, not just within our own operations, but inspiring across the entire industry.
LTP Group divisional activities and purposes
LTP Group includes two divisions: LTP Garment and LTP Furniture.
LTP Garment empowers premium brands to create active and conscious apparel choices. We're a global manufacturer with regional innovation centers in Europe and Asia, where our dedicated experts develop over 1,500 new styles annually. We offer a comprehensive product portfolio encompassing six key categories: Active Sport, Cycling, Outdoor, Athleisure, Urban Performance, and Sustainable Fashion & Lifestyle.
LTP Garment value proposition resides in the following areas:
- Global & Sophisticated R&D: Our network of innovation centers fosters cutting-edge design and development.
- Cutting-Edge Production: Leverage our highly competitive production facilities equipped with the latest technologies for both large and small batches.
- Dedicated Expertise: Benefit from our in-house specialists in each product category.
- High-End Quality: Our own factories specialize in crafting premium garments.
- Value-Added Services: We go beyond manufacturing. We offer a suite of services to support your success, including collaborative Design of 3D CLO technology allowing co-development of sustainable garments and Industry Insights in our 360° Innovation Book keeps you informed about the latest materials, trims, and trends.
LTP Group have legal ownership of two entities in Belarus, which no longer deliver manufacturing services for the customers. All machinery, tools and equipment are frozen due to local regulations, and the net carrying value was written off at the end of 2022. LTP Group efforts to liquidate the entities has not been successful until the date of this report.
Additionally, we actively participate in FairWear Foundation audits initiated by our brand partners, demonstrating our unwavering commitment to ethical labor practices.
The dedicated team of more than 500 employees handles great volume and flexibility emphasised by the fact that every 15 seconds a new furniture item is finished at LTP.
The production is lean and efficient designed and powered to handle short lead times and large number of variances. All European manufacturing sites are ISO-9001 & ISO-14001 certified to ensure the highest quality and environmental standards. To secure transparency in the Supply Chain STEP certifications is obtained for the European production sites.
LTP Furniture Development Accelerator Center include the latest 3D development software along with in-house wood and foam cutting capabilities to serve customers demands for shorter time-to-market on new product development as well as creating fewer prototypes of each piece of furniture leading to faster decision making and minimizing waste.
During 2023 LTP Furniture production facility in Mexico has been offering our customers manufacturing and easy access to the largest furniture market in the world: North America. The Mexican production facility counts 4. 000 square meters and is located in Saltillo, which is an optimal logistic hub to reach the border of the United States in just hours.
From one of the 4 factories in Lithuania and Mexico more than 1,3 million pcs are produced every year.
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