Helgstrand Dressage Reports Profit of 1 Million Euro in 2023

Dressage

Denmark

In a press release posted on 29 December 2023 on its official website, Helgstrand Dressage reports "a multimillion profit despite challenging market conditions in 2022 and 2023".

In one year time the company's net profit has plummeted from 15.9 million euro in 2022 to 1 million euro in 2023. Parent company Global Equestrian Group recorded massive losses in 2023.

Decline in Demand in Luxury Goods

The release stated: "While the results reflect the economic and geopolitical uncertainty, as well as the high interest rates and inflation that the industry has faced in the past year, Helgstrand Dressage achieves a turnover of more than DKK 377 million (50.5 million euro), an operating profit of over DKK 17 million (2.28 million euro), and a profit exceeding DKK 8 million (1.07 million). The financial statement covers the period from July 1st, 2022, to June 30th, 2023."

Anders Bjørnstrup, Commercial Director at Helgstrand Dressage, explained that, "the turbulence in the markets has been particularly evident by a general decline in demand for luxury goods, among other things. This has been a recurring theme for the entire industry - including Helgstrand Dressage. In light of this, I am of course pleased that we manage to generate a profit. We have an incredibly loyal customer base, and we highly value their ongoing commitment. With our solid equity behind us, we look to the future with confidence, and we believe that the market will turn around again."

"A Strong Financial Position"

Helgstrand Dressage's equity is valued at almost DKK 414 million as of June 30th, 2023. According to recent reports Windsome Farm, the Wellington property which Helgstrand bought for 17.4 million in 2020, has not been sold despite an earlier publication in the American press.

"Helgstrand Dressage maintains a strong financial position and remains well-prepared for the future," the statement read.

In 2016, Helgstrand Dressage declared a profit of 4.8 million euro. In 2017 it was a whopping 14.7 million euro. In 2018 the profit was 12.5 million euro. That year the company owners (Helgstrand and Waterland) gave themselves a dividend of 21 million euro. In the difficult corona year a profit of 1.75 million euro was declared. In 2021 the profit was back up to 14.75 million euro. In 2022 it was 15.9 million euro.

Global Equestrian Group

A closer look, however, at the Global Equestrian Group reports of 2023 - the umbrella company that owns Helgstrand Dressage - shows far different figures.

For the financial year starting on 1 July 2022 and ending 30 June 2023 (with the reports published on 27 December 2023), the "Global Equestrian Group Holding ApS" recorded a loss in 2023 of 21.7 million euro. In 2022 the loss was 6.1 million euro, while in the 2020 corona year this company made an almost 500,000 euro profit. The revenue of the Holding exceeded 1.3 billion Danish Kroner (174 million euro). The total assets are valued at 400 million euro.

Company "Global Equestrian Group ApS", which is owned by "Global Equestrian Group Holding," recorded a loss of 20.6 million euro. In 2022 there was a loss of 10.3 million euro, while in the 2020 corona year there was a profit of around 500,000 euro.

Turbulent Times

The press release further added that, "While Helgstrand Dressage continues to experience strong interest from all markets with demand for its selection of horses, market conditions mean that there is currently lower activity, especially in the sale of horses. Helgstrand Dressage is in good and constructive dialogue with customers but expects the activity to remain subdued in the coming year."

Helgstrand has been facing turbulent months in November and December after the broadcast of the undercover documentary "Operation X: Secrets of the Horse Billionaire" on Danish TV2. The programme showed footage of alleged systemic horse abuse in order to sell horses at a fast pace. As a result Andreas Helgstrand has been suspended from representing Denmark in 2024 at competitions and Helgstrand, Thomas Sigtenbjerggaard, Maria Anita Andersen and Ole Hummelshøj have been expelled by Danish Riding Instructor Association (DR-IF).