Kährs Group's consolidated net sales amounted to SEK 541 million ($56.8 million) for the Q1 2025, compared to SEK 643 million ($67.5 million) in the Q1 2024. This corresponds to a decrease in organic sales of 8%. During the Q1, the geopolitical environment, primarily uncertainty surrounding actions in the USA regarding tariffs, had a negative impact as inflation and long-term interest rates increased.
Operating EBITA totalled SEK 22 million ($2.3 million), corresponding to an EBITA margin of 4.1% for the Q1 2025.
Operating profit during the Q1 2025 continued to be strongly affected by low sales, which has given rise to significant underabsorption.
Q1 2025 operating profit (EBIT) amounted to SEK 18 million ($1.9 million), corresponding to an operating margin of 3.3%, of which comparative items in the quarter amounted to SEK 0 million.
President and CEO Johan Magnusson comments: “Consumer sales are showing signs of recovery, driven by increased interest in home renovations. The segment in Europe is strengthening thanks to lower inflation and interest rates, which promotes purchases of durable goods such as flooring. We have continued to strengthen our positions and are growing compared to the previous year in several key markets, primarily within the renovation segment.
The project market in primarily the Nordics and the USA remains challenging due to a continued low start-up rate in newbuilt.
The market for residential newbuilt and commercial properties remains cautious, given the uncertain geopolitical situation, which, among other things, poses a risk of increased trade barriers in the form of tariffs that could lead to increased uncertainty.
Despite geopolitical uncertainty and the risk of new trade barriers, we see a brighter longer-term outlook, with expectations of increased stability and improved consumer confidence as interest rates fall. The focus remains on growth in Europe and the US, innovation of sustainable products and an even better customer experience strengthened by our new digital interfaces. We are highly prepared to deal with market challenges due to increased geopolitical uncertainty to ensure both short-term and long-term value.”
Kährs Group is a manufacturer and distributor of flooring.
