Year-end report January-December 2017
• Net sales for the fourth quarter amounted to SEK 3,116 million (3,155).
• Organic growth was 0 per cent (5).
• Operating profit amounted to 282 million (297), corresponding to an operating margin of 9.1 per cent (9.4).
• Currency effects on operating profit totalled approximately negative SEK 25 million in transaction effects. Translation effects were approximately SEK 0 million.
• Profit after tax amounted to 232 million (loss: 264), corresponding to earnings per share after dilution of SEK 1.38 (loss: 1.56).
• Operating cash flow amounted to SEK 196 million (480).
• The Board proposes an ordinary dividend of SEK 3.50 per share (3.00) as well as an extra dividend of SEK 3.50 per share (–). The Board also proposes that authorisation is obtained to cancel treasury shares.
Consolidated net sales, earnings and cash flow
The market during the fourth quarter is deemed overall to be on a level with the year-earlier period.
Organic growth was unchanged (5 per cent), positively impacted by growth in sales in the Nordic region and negatively impacted by decreased sales in the UK. Currency losses of SEK 36 million (losses: 114) impacted sales.
The gross margin improved to 39.2 per cent (37.5), primarily as a result of higher sales values and a changed sales mix.
Operating profit declined as a result of discontinuation costs for the UK Interior Solutions unit and currency losses, which were only partially offset by higher sales values.
The return on operating capital was 31.5 per cent in the past twelve-month period (Jan-Dec 2016: 32.5). The return on equity was 27.8 per cent in the past twelve-month period (Jan-Dec 2016: 13.0).
Operating cash flow declined, primarily as a result of a negative change in working capital, mainly due to increased payments in the UK year-on-year.
Comments from the CEO
“Nobia has had a good year. Despite currency headwind and a challenging UK market, we deliver an EBIT margin that reaches our financial target of 10 per cent. Given the company’s satisfactory net profit and strong balance sheet, the Board proposes a dividend totalling SEK 7 per share. Our strong financial position will also enable continued investments in growth, both organic and via acquisitions.
In the fourth quarter sales continued to grow in the Nordics, while sales in the UK were down, primarily because we have exited the Homebase business. I am pleased that the Group’s underlying earnings, adjusted for currency and the ceasing of Homebase, were better than the same quarter last year,” 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
This year-end report is information such that Nobia is obliged to make 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 6 February 2018 at 8:00 a.m. CET.
Nobia develops and sells kitchens through some twenty strong brands in Europe, including Magnet in the UK; HTH, Norema, Sigdal, Invita, and 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 6,100 employees and net sales of about SEK 13 billion. The Nobia share is listed on Nasdaq Stockholm under the ticker NOBI. Website: www.nobia.com