Interim report January-June 2017
• Net sales for the second quarter amounted to SEK 3,408 million (3,403).
• Organic growth was 1 per cent (4).
• Operating profit amounted to SEK 413 million (420), corresponding to an operating margin of 12.1 per cent (12.3).
• Currency losses had an impact of approximately SEK 35 million on the Group’s operating profit, of which SEK 0 million in translation effects and a negative SEK 35 million in transaction effects.
• Profit after tax amounted to SEK 314 million (302), corresponding to earnings per share after dilution of SEK 1.86 (1.80).
• Operating cash flow amounted to SEK 193 million (238).
Consolidated net sales, earnings and cash flow
Demand for kitchens in the Nordic region and Central Europe in the second quarter is deemed to have improved year-on-year. In the UK, the kitchen market weakened as the result of heightened macroeconomic uncertainty.
Sales increased organically 1 per cent (4), positively impacted by increased sales values and negatively affected by fewer delivery days compared with the preceding year. Currency losses of SEK 12 million (losses: 176) impacted sales.
The gross margin amounted to 39.9 per cent (40.1), adversely affected by currency fluctuations and a changed sales mix, which were partly offset by higher sales values.
Operating profit declined due to lower volumes and currency losses.
The return on operating capital was 32.0 per cent in the past twelve-month period (Jan-Dec 2016: 32.5). The return on equity was 13.9 per cent in the past twelve-month period (Jan-Dec 2016: 13.0).
Operating cash flow declined as the result of a negative change in working capital and higher investments compared with the corresponding quarter in 2016.
Comments from the CEO
“Given the conditions with fewer delivery days than last year, I am pleased with the results for the second quarter. Organic growth in the Nordic region was primarily driven by a strong increase in new housing construction in all Nordic countries. Our project sales in the UK also increased, while sales to consumers declined slightly. Although the operating profit was burdened by currency losses, our profit generation in the first half is ahead of last year’s. We are now working intensively towards our target of growing organically and via acquisitions. Overall, I remain confident in our ambition to deliver profitable growth,” says President and CEO Morten Falkenberg.
For further information
Contact any of the following on +46 (0)8 440 16 00 or +46 (0)705 95 51 00:
• Morten Falkenberg, President and CEO
• Kristoffer Ljungfelt, CFO
• Lena Schattauer, Head of Communication and Investor Relations
Nobia develops and sells kitchens through some twenty strong brands in Europe, including Magnet in the UK; HTH, Norema, Sigdal, Invita, Marbodal in Scandinavia; Petra and A la Carte in Finland and Ewe, FM and Intuo in Austria. Nobia generates profitability by combining economies of scale with attractive kitchen offerings. The Group has approximately 6,000 employees and net sales of about SEK 13 billion. The Nobia share is listed on the Nasdaq Stockholm under the ticker NOBI. Website: www.nobia.com
This information is such that Nobia is obliged to made public pursuant to the EU’s Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, on 21 July 2017 at 1:00 p.m. CET.