Nobia’s Q3 2023 net sales decreased to SEK 3,101 million with organic decline of -18%. The Nordic region declined organically by -21%, the UK region by -18%, and Portfolio Business Units by -3%.
The gross margin for the Group remained stable at 35.8% and gross profit was SEK 1,109 million.
Operating profit amounted to SEK 132 million ($12.6 million). Excluding items affecting comparability amounting to SEK 81 million ($7.7 million), operating profit was SEK 51 million ($4.9 million). Price increases and restructuring savings had a positive impact. However, this was offset by the adverse effects of significantly lower sales volumes and unfavourable mix development, primarily attributed to the unfavourable market conditions.
Restructuring savings were SEK 90 million ($8.6 million). Changes in exchange rates negatively impacted operating profit by approximately SEK -15 million ($1.4 million).
Jon Sintorn, President and CEO, said: “Nobia delivers a profitable Q3 despite a weak market, meeting the macro headwind with cost reductions and taking steps to strengthen the financial position. In this environment it is important to remember that the kitchen market has had and will return to good growth long term, and that Nobia has a very strong position in this market.
Group net sales decreased 18% on an organic basis, compared to the same quarter last year. The decline, however, reflects the market development and can thus be attributed to the macroeconomic situation. Both the consumer and project segments have been impacted, with a more pronounced effect for consumer sales. Despite the significant decline, our operating profit was similar to last year’s.”
January – September 2023, consolidated
The Group’s net sales decreased to SEK 10,323 million with organic decline of -12%. The Nordic region declined organically by -15%, the UK region by -13%, while Portfolio Business Units grew organically by 4%.
The gross margin decreased to 34.6% and gross profit was SEK 3,572 million.
Operating profit amounted to SEK -24 million ($2.3 million). Operating profit, excluding items affecting comparability, amounted to SEK 215 million ($20.5 million), corresponding to a margin of 2.1%. Items affecting comparability mainly referring to restructuring costs and a capital gain from the sale of the Dewsbury factory in the UK amounted to -239 million ($22.8 million), see page 15 for details. Implemented price increases continued to have good effect and selling and administrative expenses were reduced. The volume decline had a considerable negative effect, resulting in a lower operating profit.
Restructuring measures contributed with SEK 194 million ($18.6 million) in savings. Changes in exchange rates negatively impacted operating profit by SEK -50 million ($4.8 million).
Nobia develops, manufactures and sells kitchen solutions through a number of strong brands in Europe.
