IT CONTINUES EXPANDING ITS FACILITIES
It intends to have a turnover of more than 21 million euros.
AFP Courts has installed a total of 450 padel courts during the first 2022 quarter. AFP Courts’ managers expect to keep the same pace during the rest of the year and reach 1.300 courts by the end of 2022. The company is expanding its manufacturing facilities, which are planned to be completed in 2023.
AFP Courts has started 2022 with a 40% growth in turnover in the first quarter of the year in respect to the same period last year and a global of 450 padel courts installed. The company, which in 2021 installed 870 courts and had a turnover of 12.5 million euros, expects to exceed 21 million euros in turnover in 2022, according to the firm’s co-CEO and co-founder, José Manuel Delgado, and to build and install around 1.300 courts.
The co-CEO and co-founder of AFP Courts positively estimates the growth experienced in the first quarter of this year, stating that “although some markets are starting to show signs of maturity, others are opening up and a positive growth is starting to take place in larger markets”.
FOCUS: EUROPE AND THE UNITED STATES
Delgado explains that the company’s focus will be on countries such as the United Kingdom, Germany, the Netherlands and the United States. In addition, a significant growth has been noticed in Italy for the last two years.
However other markets such as the Nordic countries and Belgium, which are still important, could soon begin to show signs of saturation. Delgado points out that, for example, when his company set foot for the first time in Sweden, in 2014, that country had only 12 padel courts, whereas now the number of courts installed is close to 4,000.
FACTORY EXPANSION
Since its beginnings, AFP Courts has been manufacturing its courts in its own facilities in the province of Barcelona. With the aim of increasing its production capacity to be able to supply all the demand they receive, the company is in the process of expanding both its logistics warehouse and manufacturing plant. At the beginning of 2023 they expect to have a total of 12,000 square meters.
Likewise, without specifying, the co-CEO says that the company is “in advanced negotiations to have its own production line outside Spain, on the American continent”.
In any case, Delgado points out that the current 100% production in Spain represents a competitive advantage in the face of incipient competition in other European countries.
Nowadays, in the padel market, most of the main suppliers are Spanish. However, Delgado comments that there are beginning to be initiatives to manufacture courts by local companies in some of the more mature countries, such as Sweden, Italy and Holland. In any case, the executive points out that it is still more competitive in price to manufacture in Spain and transport to the rest of Europe than to manufacture directly in other European countries.
MORE EXPENSIVE RAW MATERIALS
AFP Courts is not currently experiencing supply shortages. However, Delgado indicates that there is a situation of “great uncertainty” due to the increase in the price of the raw materials required for the manufacturing of padel courts, such as glass, steel, aluminum or the material for the artificial turf.
The businessman indicates that there is a “great volatility of prices”, with important changes from month to month, as well as “exorbitant upward variations”. He adds that, in this context, “it is difficult to maintain the rates for the final customer”.
BARRIERS
José Manuel Delgado emphasizes that “the sport of padel is already so strong that it is unstoppable”. However, he points out that, in addition to the rising cost of raw materials, there is another barrier that may hinder the launch of padel into some countries; these are the technical regulations that may exist.
To give an example, he mentions the situation in Germany, Holland and the USA, where there is no impeachment to the installation of indoor courts, but the regulations are very strict with respect to outdoor facilities. In these countries, however, the manager points out that “AFP Courts currently complies with all the technical requirements”.
INVESTMENT IN EDUCATION
The manager emphasizes that “we have been one of the companies that have invested the most in introducing padel in many countries such as the United States, the United Kingdom, Sweden…”. In this respect, he adds that “we are going to try to promote even more the educational part of the sport, because we have seen that it is important for the development in the new countries”.
As he explains, “it’s not only about setting up a club but also, for example, providing the customer with courses to train coaches who in turn, will train future players”. Delgado recalls that All for Padel, as a group, offers an integral concept, the adidas concept 360º, including the design and manufacturing of padel courts, hardware for padel racquets and balls as well as adidas accessories, and it also has its own training academy.
Other projects that AFP Courts is currently working on, according to Delgado, are: to further enhance the sustainability of all the materials they use; to introduce the greatest amount of technology for the development of a smart court; and to help make the sport of padel completely inclusive.
te de montar un club sino también, por ejemplo, de facilitar al cliente cursos para formar entrenadores que a su vez formen a futuros practicantes”. Delgado recuerda que All for Padel, como grupo, ofrece un concepto integral, el adidas concept 360º, incluyendo el diseño y fabricación de pistas de pádel, el hardware de palas y bolas y accesorios adidas y también cuenta con una academia propia de formación.
Otros proyectos que AFP Courts tiene actualmente entre manos, según concluye Delgado, son: potenciar aún más la sostenibilidad de todos los materiales que utilizan; introducir el máximo de tecnología para el desarrollo de una pista inteligente; y ayudar a que el deporte del pádel sea completamente inclusivo.