The year that began with the “perfect storm” ended with the highest profit ever for two companies in the Norrøna group.
Interest in outdoor life and hiking equipment has gained momentum during the pandemic.
This contributed to record results for the two largest companies in the Norrøna Group last year.
The latest annual accounts of Norrøna Sport, which produces and sells bags and clothing, among other things, shows that profit after tax reached NOK 95.5 million in 2020.
This is more than double the result of NOK 39.8 million in 2019, as well as the highest ever.
Norona focuses on tourism – the majority of Norwegian travel companies buy
The company, which sold sports and leisure goods from stores in Norway, Sweden, Switzerland and Finland, also posted a record result last year.
Norrøna Retail increased its annual profit to NOK 22 million, which is a double of a result of just under one million in the previous year.
From crisis year to peak year
“2020 has of course been a challenging year for our companies and employees with a lot of uncertainty and turmoil,” Norrøna CEO and owner Jørgen Jørgensen wrote in an email to E24.
– It started with the perfect storm – poor snow conditions, Gresvig’s bankruptcy, XXL and covid-19 problems, then turned into a beneficial boost in outside interest, especially in the Norwegian market, and thus demand for Norrøna products, wrote Jorgensen, who also distributes praise to the board The managers and employees of the group.
It is the fourth generation of owners of the clothing factory, which was founded in 1929. The magazine Capital Jorgensen’s fortune is estimated at one billion Norwegian kroner.
Strong growth of sports chains: sales volume 3.3 billion
Norrøna Sport’s turnover ended at NOK 598 million, an increase of five per cent over the previous year. At the retail company, revenue increased more than 20 percent to NOK 232 million.
When the Corona pandemic hit hard last spring and shut down society, a number of industries were hit hard.
– We noticed an immediate halt to demand, which gradually rebounded after a period of 14 days, and then there was a real momentum in demand in June and July 2020, a historic peak, Malik Norona wrote.
The retail company exited in 2020 with fifteen stores. This year, it expanded with 11 stores, with new products being developed, according to the owner.
driven corona support
According to annual accounts, Norrøna Sport received approximately NOK 319,000 in Corona support from the state, while Norrøna Retail received approximately NOK 495,000.
The two companies repaid this subsidy in 2021, according to the calculations, as the decision is based on a strong outcome.
A billion in Corona subsidies could have been paid without companies incurring a loss
Jørgensen wrote that support schemes to “reduce uncertainty for the vast majority of companies were important”.
When it turned out that our market came back “quickly” and developed better than it could have done otherwise, it was completely against my values and I kept that support, even if we could have done it.
Support for travel companies
Meanwhile, it is reported that travel company Norrøna Hvitserk has received support which has been retained. Calculations show that this company lost 1.6 million last year, after its sales fell more than 65 percent.
Norrøna has also received support in the USA.
There isn’t the same Social Security for American workers, so the scheme is designed for companies to lay off employees to a lesser degree.
– We have chosen not to lay off any store employee in any country, despite the stores being closed for periods. Our employees are so important to Norona that they can provide services, and our employees have certainly made it through this difficult time,” Jorgensen wrote.
According to the calculations, Norrøna Sport has set aside 15 million NOK for the dividend, money that Jorgensen states will go to pay wealth tax and the tax on the profits themselves.
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