Kährs Group's 2Q 2017 net sales amounted to SEK 792 million ($98 million), an increase of SEK 37 million ($4.6 million), or 5% compared with the 2Q 2016. The improvement can be attributed to a stable and favourable trend for hardwood flooring, while sales of resilient flooring are more volatile over the quarter since essentially all sales occur in the projects market, as the company says in the press release received by Lesprom Network.
2Q 2017 operating EBITA totalled SEK 75 million ($9.3 million), corresponding to an operating margin of 9.5% and an increase of 23 %.
Operating profit (EBIT) was SEK 46 million ($5.7 million), or 5.8%. This worsening of EBIT of SEK 11 million ($1.4 million) can be attributed to non-recurring items of SEK 30 million ($3.7 million) related to changes in the production structure, especially the closure of the production facility in Tuupovaara, Finland.
Net sales for the 1H 2017 amounted to SEK 1,574 million ($194 million), an increase of 9% compared with the corresponding period in 2016.
January – June 2017 operating EBITA was SEK 144 million ($17.8 million), corresponding to an operating margin of 9.1%. Operating profit (EBIT) for the 1H 2017 was SEK 109 million ($13.4 million), corresponding to 6.9%. This improvement of SEK 2 million ($0.2 million)was achieved through solid sales growth and a stable gross margin, thereby offsetting the high non-recurring items of SEK 35 million ($4.3 million) for the period.
President and CEO Christer Persson comments:“Kährs Group showed stable sales growth and continued improvement in operating profit in the 2Q. Our three hardwood flooring segments, Nordics, Europe and Other Markets, all contributed to the sales increase of 5%, compared with the previous year. The Kährs Group continues to develop in a positive direction. We have a good strategic platform to continue our profitable growth, with strength in our production facilities, our wide range of products and our well-established international sales organisation.”
Kährs Holding AB is a world-leading flooring manufacturer in hardwood and resilient flooring.
