Kährs Group: Year-End Report 2022

Continued strong profitability despite a slow-down in demand  

The fourth quarter, October-December

• Net sales amounted to SEK 937 million (867), which was a growth of 8 per cent. Organic growth was 0 per cent. Residential Nordics, Residential North America and our Commercial segment within Health care & Education continued to be strong, while sales in Residential West & South Europe slowed sharply
• Operating EBITA amounted to SEK 108 million (73), corresponding to an operating margin of 11.5 per cent (8.4).
• Operating profit totalled SEK 75 million (61), corresponding to an operating margin of 8.0 per cent (7.0)
• Profit for the period amounted to SEK 31 million (27)
• Cash flow from operating activities totalled SEK 143 million (157)
• Kährs completed in the fourth quarter a reorganisation to support profitable growth in each region
• After the balance sheet date, Kährs announced that a decision was made to adjust its production capacity to meet the lower demand in 2023. We therefore implement a plan for lowering the capacity in the European factories in different steps
• 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 fourth 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 the fourth quarter in its entirety and one month for the third quarter
   

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 with an EBITA of SEK 0.5 billion for a profit margin of 11.6 per cent.

We are very proud of the results that the entire organisation has achieved in 2022, which in many ways has been an extremely challenging year. I would like to take this opportunity one more time to thank all of Kährs’ employees for their strong commitment and drive and for our customers’ loyalty to Kährs.
 

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  
 

About Kährs BondCo AB (publ)
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 approx. 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 1,450 employees and annual sales of SEK 4 billion. www.kahrsgroup.com