Cabinplant Ensures Stable Earnings Despite Global Uncertainty

Despite the uncertainties in global markets, Cabinplant, the Danish machine manufacturer specializing in advanced systems for the food industry, has successfully ended 2023 on a high note. With a remarkable profit of DKK 48 million before tax and a revenue of DKK 418 million. This achievement reflects the company’s focused efforts to ensure stability in its earnings, even amid challenging market conditions.

A Strategic Approach to Stability
Cabinplant’s success comes from its strategic focus on balancing innovation with stability. In recent years, the company has refined its approach to project selection, ensuring that development costs are spread across multiple clients and risks are minimized.

“We have become more selective in the projects we pursue,” explains CEO Lars Ryholl. “Our goal has been to create stability in earnings, and we have succeeded by taking on projects that offer both innovation and broader market relevance.”

By leveraging its expertise and combining familiar elements with new developments, Cabinplant has significantly reduced the financial risks traditionally associated with innovative projects. This approach has allowed the company to continue delivering pioneering solutions to the global food industry without compromising its financial health.

Navigating Global Uncertainty with Confidence
Entering 2023 with a record-high order backlog, Cabinplant demonstrated resilience and agility in a year marked by global uncertainty. A key success was securing a significant project in Germany for a biodynamic vegetable processing facility, valued at a three-digit million DKK amount.

“The global market has been uncertain, but our objectives on stability and strategic projects have been achieved,” says Ryholl. “While we have seen companies take a more cautious approach to investments, we have been able to secure key projects that drive both growth and innovation.”

Despite the unpredictability of the market, Cabinplant remains optimistic. The company’s order backlog for the next six months is strong, providing a solid foundation for continued success. Additionally, Cabinplant is actively expanding its presence in the U.S. market, while also seeing promising growth opportunities in South America.

Looking Ahead
Cabinplant’s strategic focus on stability and calculated risk has positioned the company well for the future. Although Ryholl does not anticipate record-breaking results in 2024 due to a slower first half of the year, he expects the company to achieve “reasonable earnings” for the year.

Founded in 1969, Cabinplant remains a leader in designing and manufacturing systems for processing, weighing, and packing food products. Today, more than 95% of its production is exported globally, with a strong focus on Europe and growing interest in America. In 2016, the American food group CTB, owned by Berkshire Hathaway, acquired a majority stake in Cabinplant, further strengthening its global position.

Source: Metal-Supply.dk