Kährs Group report increased sales and improved profitability during the first quarter of 2015
First quarter in brief
- Net sales amounted to 687 MSEK (646), an increase with 41 MSEK or 6% compared with the previous year.
- The operating profit excluding depreciation and non-recurring items in Q1 amounted to 76 MSEK (53) or 11.1% (8.2) an improvement with 43%.
- The operating profit excluding non-recurring items in the first quarter amounted to 52 MSEK (30) or 7.6% (4.6).
- The profit for the period amounted to 35 MSEK (5) in the first quarter. The explanation for the positive deviation was mainly related to a stronger gross profit due to higher net sales and improved gross margin while the costs were kept at a moderate level.
- In February, a minority share of the recently formed Croatian company Pozgaj Flooring was acquired to strengthen the supply footprint. The acquisition adds own production of wood flooring near the important Central European market and secure supply of high-quality Croatian oak to the Group.
President and CEO Christer Persson comments:
“Kährs Group continued to grow in the first quarter 2015, with an increase in net sales of 6% and improved operating profit, excluding depreciation and non-recurring items, by 43% compared with the previous year. The improvement is primarily related to higher net sales within the Hardwood flooring segment but also Resilient flooring and segment Other showed good development during the period. Most of the sales regions contributed to the improvement with strong underlying sales development in Sweden, Norway, UK and the US.
During the period, Kährs Group has acquired a minority share of the Croatian company Pozgaj Flooring. A partnership that will further strengthen Kährs Group’s market position and supply footprint by adding own production of wood flooring near the important Central European market and supply of high-quality Croatian oak to the Group.”
For further information, please contact:
Christer Persson, President and CEO, tel: +46 70 271 20 14
Jonas Bäck, CFO, tel: +46 70 510 61 43
About Kährs Holding AB (publ)
Kährs Holding AB (publ) is a world leading wood and resilient flooring manufacturer with well-known and globally recognized brands such as Kährs, Karelia and Upofloor. The company’s innovations have shaped the industry and Kährs purposefully work to bring new innovations to the flooring market. Kährs Group deliver products to more than 70 countries and have a market leading position in Sweden, Finland, Norway and Russia as well as a strong position in other important markets such as the UK and Germany. The Group employs 1,550 people and has yearly sales of around 300 MEUR.