Second quarter summary
Comments and numbers relate to continuing operations, unless otherwise stated.
** Net sales decreased to
** Gross margin was 35.6% (36.0). Excl. items affecting comparability, the margin increased to 39.4% (35.9).
** Operating profit amounted to
** Items affecting comparability (IAC), referring mainly further restructuring measures in the
** Operating profit excluding IAC was
** Profit after tax, total operations, amounted to
** Operating cash flow, total operations, amounted to
** The preferential rights issue closed in April and raised
** Kristoffer Ljungfelt new President & CEO as of
**
** Further cost reduction measures announced.
The kitchen market remained weak in the second quarter, primarily due to a sustained decline in new build housing across our regions, with no signs of short-term improvement. In contrast, the consumer market looks more promising, with the number of consumer leads and design appointments gradually increasing throughout the spring and now exceed those from the same period last year, although last year's figures were historically low.
Net sales for the Group declined -6% organically, with growth in the
This spring has brought significant changes in the Group as we have adapted to the challenging market situation. Amongst other we successfully completed a share rights issue to strengthen our balance sheet, enhanced our consumer offerings to drive growth and market share gains in retail, and downsized the organization where necessary due to falling volumes in the project business.
Despite these efforts, much work remains to align the business with current market conditions. We announced a second major cost reduction program this quarter, having successfully executed the first program that realized around
The
In the Nordics, with the high exposure to the new build housing segment, net sales declined -14% organically. We continued to adjust our cost base in the supply chain and drove further gross margin improvements through consumer sales with higher average order values. Recent activities showed good performance in
The completion of our new state-of-the-art factory in Jönköping is progressing at high pace. In June we conducted our first trial of an end-to-end flow, with all highly automated machinery operating simultaneously. Witnessing this in action was truly impressive, and I am confident that this will represent a significant breakthrough in the manufacturing of sustainable, design-rich kitchens, providing Nobia with additional competitive advantages in the future.
As we continue to navigate a challenging market environment, including anticipated further declines in the project segment, we remain confident in our market position that features some of the industry's strongest kitchen brands. We continue to work relentlessly on executing our strategic initiatives; improving cost efficiency, realizing the full potential of the Nordic region, and executing the
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
https://news.cision.com/nobia-ab/r/interim-report-second-quarter-2024,c4015089
https://mb.cision.com/Main/5927/4015089/2919380.pdf
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