Nightclub Navigates Deficit Amidst Investment Surge

Financial Headwinds Persist Despite Rising Turnover

The popular nightclub Folkebadet Sandvika AS has reported a substantial deficit of NOK 20.6 million over the past four years, despite increasing revenue and efforts to boost customer spending.

Optimism for Profitability

Company CEO Martin Schilde had projected profitability for 2024, a goal that was not met, with the company recording a pre-tax deficit of NOK 4.4 million. Schilde attributes the shortfall primarily to significant investments and depreciation costs associated with a nearly NOK 40 million outlay.

“If we take away, among other things, depreciation, then we were in profits last year. We have invested almost 40 million there. So we are really brilliant – this is the first year we are plus if we ignore the depreciation, among other things.”

—Martin Schilde, CEO

He further elaborated that turnover has grown without price increases, indicating strong customer engagement. However, the impact of substantial investments and the lingering effects of the COVID-19 pandemic continue to affect the company’s financial performance.

Future Outlook Brightens

Looking ahead, Schilde expressed confidence that Folkebadet Sandvika AS will achieve profitability in 2025, even after accounting for depreciation. The company has observed increased turnover compared to the previous year, though patrons are reportedly spending less per table, even as table occupancy rises.

The Board, in its financial accounts, anticipates significant improvements in results and equity over the coming years, driven by enhanced operational activities and further cost reductions.

Years of Red Ink

The company’s financial performance over the last four years shows a consistent pre-tax deficit:

• 2021: – NOK 3,742,000
• 2022: – NOK 6,028,000
• 2023: – NOK 6,481,000
• 2024: – NOK 4,324,000

Despite these losses, revenues have climbed annually, from NOK 16.3 million in 2021 to NOK 23.8 million in the most recent year. This increase suggests that the venue remains popular, with last year’s turnover equivalent to approximately 165,473 pints sold at NOK 144 each.

In comparison, a recent survey by Statista indicated that the average price of a beer in Norway was approximately NOK 85 in 2023, highlighting Folkebadet Sandvika’s positioning within the market (Statista 2023).