Kährs Group: Year-End Report 2023

Optimisation for continued stable profitability in a challenging market situation 

Kährs’ net sales decreased by 35 per cent in the fourth quarter, primarily due to continued weak demand in the residential segment compared to record-strong comparative figures. Profitability was maintained by adapting the production capacities to lower demand and good cost control. The strong trend of improved gross margin was broken in the last quarter of the year, with both operating EBITA and operating EBITA% decreasing compared to the historically strong fourth quarter in 2022. Strong cash flow despite a lower profit via decreased working capital through gradually slowed production rates that led to lower inventory levels in the fourth quarter.
  

Fourth quarter 2023

• Net sales amounted to SEK 612 million (937), which was a decrease of 35 per cent. Organic change was -34 per cent 
• Operating EBITA amounted to SEK 35 million (108), corresponding to an operating EBITA margin of 5.7 per cent (11.5)
• Operating profit totalled SEK 27 million (75), corresponding to an operating margin of 4.6 per cent (8.0) 
• Profit for the period amounted to SEK -2 million (31)
• Cash flow from operating activities totalled SEK 144 million (144)

 
January–December 2023

• Net sales amounted to SEK 2,897 million (4,002), which was a decrease of 28 per cent. Organic change was -30 per cent 
• Operating EBITA amounted to SEK 253 million (464), corresponding to an operating EBITA margin of 8.7 per cent (11.6) 
• Operating profit totalled SEK 182 million (411), corresponding to an operating margin of 6.3 per cent (10.3), of which one-off costs amounted to SEK 51 million (32) primarily related to restructuring of the Russian operations
• Profit for the period amounted to SEK 30 million (226)
• Cash flow from operating activities totalled SEK 108 million (216)

 
President and CEO Johan Magnusson comments:
We clearly see that Kährs has the ability to rapidly adapt and adjust its operations to entirely new market conditions together with profitability-enhancing measures and continued good cost awareness. Despite 2023 being impacted by a slow-down in the residential segment, we can summarise a full-year result with good profitability.

Our focus on new, innovative and sustainable product offerings and investments in an improved customer experience are continuing to generate good results. We maintain our market shares, and in some regions, we increase our shares and are well-equipped to meet future challenges and opportunities as we strive to reach our goal of being the leading actor in flooring solutions in select markets in Europe and the USA.

Thank you to all new and loyal customers for choosing Kährs. A special thank you to all our talented staff for their efforts to quickly adapt Kährs to a tough market with lower demand in the residential segment at the same time as we, together, continue to be strongly committed to implementing our strategy.
 

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 1,102 employees and annual sales of SEK 2.9 billion www.kahrsgroup.com