First quarter summary
Comments and numbers relate to continuing operations, unless otherwise stated.
- Net sales declined by -19% to
SEK 2,615m (3,241), corresponding to an organic decline of -20% (-7). - Gross margin improved to 36.6% (33.1). Adjusted for items affecting comparability, the gross
margin improved to 37.3% (36.7). - Operating profit amounted to
SEK -44m (-246). - Items affecting comparability amounted to
SEK -17m (-298). - Operating profit excl. items affecting comparability (IAC) was
SEK -27m (52). - Profit after tax, total operations, amounted to
SEK -246m (-214) corresponding to earnings per
share after dilution ofSEK -1.46 (-1.28). - Operating cash flow, total operations, amounted to
SEK -574m (-38). - Several measures to strengthen the balance sheet completed; factory property sale and leaseback
transaction, sale of non-core operations inAustria (ewe) andthe Netherlands (Bribus) and an announced guaranteed preferential rights issue. - Bribus and ewe reported as discontinued operations. Portfolio Business Units has been
dissolved. Going forward, the Group reports two segments; the Nordic andUK regions.
Events after the close of the quarter
- The preferential rights issue successfully closed in April.
- Kristoffer Ljungfelt new President & CEO as of
May 1 .
CEO comment
On
The market remains difficult for both our consumer and project businesses. We anticipate that the combination of high interest rates and a decline in housing starts will continue to weigh on our project market throughout the remainder of the year. In the consumer market, we see modest improvements in consumer confidence and an increase in design appointments across all countries, albeit starting from a low base. The challenging market is reflected in our organic net sales that declined 20% in the quarter. Despite improved gross margin and cost out activities the operating income was slightly negative.
Together with the Nobia team, I am committed to take all actions necessary to take us through the current headwinds. As we press forward with the execution of our strategy, including transformation of our operations in the
In the first quarter, we successfully undertook significant actions to improve our balance sheet. This included divesting non-core assets ewe and Bribus, entering a sale and leaseback agreement for our Jönköping site, conducting a share rights issue, and securing extended credit facilities with our banks. I want to put on record my appreciation to all our shareholders for their support and participation.
The transformation of the
Completion of the Nordic factory in Jönköping is also progressing well. I recently visited the factory together with one of our largest customers and it is impressive to witness the progress the team has made and how it will step-change our competitiveness in multiple ways. We produced over 30,000 cabinets from Jönköping in the quarter, this is modest volume but ahead of our plan and an important step toward the full commissioning of the factory. The work is, however, far from complete and the next step is to deliver full kitchen manufacturing and then ramp up volume.
The cost program executed in 2023 has rendered savings well ahead of plan. However, as the market continues to be challenging we plan to reduce our fixed cost base further. This includes the transitioning to a more asset light model in the
Having encountered numerous challenges in recent years including a material downturn in new house building activity, as a result there is pent-up demand in our markets. While we anticipate facing further challenging conditions for the remainder of 2024 we are making progress across all aspects of our business and these changes will position us well for growth and market share gains.
I recognize the significant work ahead but I want to thank our teams for the hard work they do everyday across all our markets and especially so in these challenging times.
Kristoffer Ljungfelt
President & CEO
This disclosure contains information that
For further information
Henrik Skogsfors, CFO
+46 70 544 2112
henrik.skogsfors@nobia.com
+46 706 647335
tobias.norrby@nobia.com
Nobia develops, manufactures and sells kitchen solutions through a number of strong brands in
https://news.cision.com/nobia-ab/r/interim-report-january---march-2024,c3977685
https://mb.cision.com/Main/5927/3977685/2794238.pdf
(c) 2024 Cision. All rights reserved., source