Total net sales for the Kährs Group totalled SEK 937 million ($89.2 million) for the Q4 2022, compared to SEK 867 million ($82.6 million) for the Q4 2021. This corresponds to organic growth of 0%. Strong sales in Residential Nordics, where there is still a good level of activity on the completion of new construction projects that were started in the second half of 2021 and the first half of 2022. Residential North America and Commercial also showed organic growth in the Q4 while demand in West & South Europe and Emerging Markets decreased significantly.
During the period January–December 2022, the Group’s sales amounted to SEK 4,002 million ($381 million). Kährs thus passed an important milestone with net sales of more than SEK 4 billion ($381 million). The strong sales in the residential segment in the Nordics have been the strongest contributor, with sales of 3-strip wood flooring performing well.
Q4 2022 operating EBITA totalled SEK 108 million ($10.3 million), corresponding to an operating margin of 11.5%. During the Q4, Kährs has had a positive price development on energy transactions and primarily pellets sales, which were strong contributors to the positive development in earnings. Another contributor to the good profitability is Kährs’ ability to transfer the increase in costs down the line.
During the Q4, Kährs was impacted negatively by SEK 51 million ($4.8 million) from a negative revaluation of energy derivatives following the sharp fall in energy prices during the last week in December, resulting in a low valuation of Kährs’ contracted forwards as at 31 December 2022.
Operating profit (EBIT) amounted to SEK 75 million ($7.1 million) in Q4 2022. Items affecting comparability amounted to SEK 29 million ($2.8 million) in the quarter, which results in an operating EBIT of SEK 104 million ($9.9 million).
President and CEO Johan Magnusson comments: “When we summarise 2022, we can state that Kährs continued to take steps forward in its strategic change work and executed profitability-enhancing measures. Kährs is above the long-term growth and profitability targets with strong profit margins in all four quarters.
In a macro-environment that was influenced by geopolitical uncertainty, high inflation and rising interest rates that had a negative impact on the housing market in the second half of 2022, we managed to reach net sales of SEK 4.0 billion ($381 million) with an EBITA of SEK 0.5 billion ($47.6 million) for a profit margin of 11.6%.”
Kährs is a leading manufacturer and distributor of flooring.
