Kährs Group: Interim Report July-September 2022

Strong quarter with continued improvement in sales and profitability

• Net sales amounted to SEK 921 million, with strong sales in the residential segment in the Nordics and continued good demand in North America. In Europe, demand slowed in the third quarter after a strong second quarter in Central Europe. Kährs’ commercial segment had strong sales in the third quarter with increasing margins
• Operating EBITA totalled SEK 83 million, corresponding to an operating margin of 9.0 per cent in the seasonally weakest quarter. During the first nine months, the operating margin was 11.6 per cent, twice what it was in September 2021
• Operating profit totalled SEK 77 million, corresponding to an operating margin of 8.3 per cent 
• Cash flow from operating activities totalled SEK -20 million
• Kährs announced at the beginning of August that, due to the prevailing market conditions in Russia, it had initiated a process for evaluating opportunities and conditions for selling its operations in Russia. Since the start of the war at the end of February, all financial transactions and flows of goods between the Russian company and the rest of Kährs have been stopped. Kährs is also following all sanctions on Russia closely and ensuring compliance with them
• Nasdaq Stockholm has officially listed the bond loan issued by Kährs BondCo AB (publ) for trading on STO Sustainable Bonds as of 26 August
• The Group was subject to a change of ownership on 31 August 2021, and in connection with the subsequent refinancing, Kährs BondCo AB (publ) became the new parent company in the Group. This report is the third interim report with Kährs BondCo as parent company. Due to this, no comparative figures are available for periods earlier than 31 August 2021. The previous year’s comparison figures thus only contain one month for the third quarter 
   

President and CEO Johan Magnusson comments:
Kährs continues with yet another strong quarter with further strengthened profit margins, compared to the first two quarters of 2022. Kährs is well above its goal of 10 per cent growth with a profit margin in excess of 10 per cent. 

We continued to strengthen our positions in the residential segment in the Nordics and North America through a strong customer focus and availability. We are seeing improved demand in the commercial segment, with a focus on the health and education sector where we are achieving successes with our new sustainable product offerings. Our strategic investments in innovation, sustainability and digitalisation continue to generate results. 

In summary, Kährs is posting yet another record-setting quarter in a turbulent market environment taking into consideration an immediate transition in our operations in Russia. Our strategic direction is showing strength once again through continuous improvements in profit.
 

For further information, please contact:
Johan Magnusson, President and CEO
Phone: +46 70 540 13 96 
johan.magnusson@kahrs.com
 
Andreas Larsson, CFO 
Phone: +46 70 242 03 65 
andreas.larsson@kahrs.com  
 

Kährs BondCo AB (publ) is a leading manufacturer and distributor of flooring with the aim of providing customer experiences beyond expectations. Kährs’ innovations have shaped the industry throughout its history and the company is dedicated to offering flooring solutions for every room, environment and need. The company delivers sustainable and durable flooring solutions to more than 70 countries, being a market leader in hardwood flooring in Sweden and Finland and having strong positions in other key markets, such as Norway, the UK, US, Germany, and Switzerland. The Group has approximately 1,500 employees and annual sales of SEK 3.9 billion. www.kahrsgroup.com