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In H2 auctions (May and September), the value of brokerage sales grew by 15% year-on-year, while the number of skins sold decreased. So, in theory, this would be a good basis for profit improvement, as revenue would be growing and at the same time the cost level should be lower compared to last year’s H2.
However, this year’s figures are not as interesting as what will happen next year. Saga’s competitor Kopenhagen Fur brokered 6.5 million pieces of furs this year, while Saga brokered 10.4 million pieces. It will be interesting to see what happens to prices and Saga’s volumes when such a large amount of supply disappears. Fur prices have risen by 30% from autumn 2023 prices, and current prices are already profitable for producers.
The fur business has historically been very cyclical, and a moderate price increase directly benefits the bottom line. For example, in 2021, Saga made an operating profit of 11 M€ when fur prices rose.
