Annual report and plans for the future – Michael Frihagen

Following the release of our 2023 annual report, CEO Michael Frihagen discussed the future and the renovation of our historic premises in an interview with regional newspaper Jydske Vestkysten.

Logistics company H. Daugaard has delivered its second-best result to date and is currently investing significantly in the renovation of its historic headquarters. But there are also acquisitions in store.

Close to the port and train station in Kolding is the historic address Toldbodgade 7, today housing logistics company H. Daugaard, which has been headquartered here since 1980.

Crucial to the company are the nearby Port of Kolding, Port of Vejle, and a 25,000 square metre warehouse hotel in Vamdrup, which are the key Danish locations for the group. H. Daugaard has managed to once again secure double-digit earnings in 2023 – in the millions, that is.

The parent company’s bottom line came to DKK 16.1 million before taxes, and while this is slightly below the numbers for the all-time record year of 2022, CEO and co-owner Michael Frihagen is satisfied with the result.

He said, ‘We’re not aiming to surpass 2022 anytime soon, as it was an exceptional year for us as well as the industry. For the same reason, we’re very satisfied with last year’s result, where a small decrease in revenue was due in particular to the normalisation of oil prices. This meant that the industry’s freight surcharges were somewhat below 2022 levels, which is reflected in our figures.’

He added, ‘In terms of the volume of shipments and orders handled, we were close to 2022 levels, which I’m very pleased about.’

Major renovation

The company’s growth and earnings are not generated in Denmark alone. The company also has offices in Luxembourg and the Czech Republic, and H. Daugaard employs around 110 people outside the country’s borders.

However, this does not mean that the company is shifting its focus away from the home base. On the contrary, H. Daugaard has opted to allocate a double-digit million amount to a renovation of its headquarters at Toldbodgade 7, according to the CEO.

Michael Frihagen said, ‘We’re proud to own such a historic building, which is why we put in new windows and replaced the roof last year. Next, we’ll move on to the interior, which will be completely redone. The final building will be much more contemporary.’

For some time now, H. Daugaard has been renovating its headquarters at Toldbodgade 7 close to the Port of Kolding. The roof has been replaced and the interior is currently being remodelled.

While the renovation is taking place, 40 of the company’s employees are temporarily working from rented premises above Kolding train station, and this is scheduled to continue until 01 November this year, which is when the logistics company can move back to Toldbodgade.

The CEO explained, ‘At that time, we’ll have room for around 65 employees, so the rebuilding and renovation also means we can gather more resources here in proximity to the Port of Kolding.’.

More acquisitions

Back in 2021, the logistics company purchased maritime transport company Grau Shipping at Port of Kolding, an acquisition that boosted the company’s core business from day one, according to the CEO.

‘Having more great colleagues and know-how in shipping has really lifted us,’ Michael Frihagen said, ‘This is why we have our sights set on several potential acquisitions this year, although I can’t name them yet.’.

The logistics company is also focusing on organic growth, meaning growth that isn’t generated solely through acquisitions.

‘In 2023, we upgraded significantly on the sales side so we can gain even more customers,’ Michael Frihagen said. ‘We have a both-and strategy when it comes to acquisitions, and we only make the acquisition if there is knowledge to be gained. We don’t do it to inflate key figures.’.

Logistikfirma lander stort overskud: Ombygger historisk hovedkontor for millioner og vil købe op | jv.dk