Interim report January-December 2014

Net sales for the fourth quarter amounted to SEK 3,231 million (2,909). Organic growth was a 3 per cent (neg: 1). Operating profit for the period excluding restructuring costs of SEK 107 million (–) amounted to SEK 240 million (199), corresponding to an operating margin of 7.4 per cent (6.8). Currency gains of approximately SEK 5 million (losses: 20) affected the Group’s operating profit excluding restructuring costs. Profit after tax including restructuring costs amounted to SEK 57 million (98), corresponding to earnings per share of SEK 0.33 (0.59). Operating cash flow amounted to SEK 301 million (210). The Board of Directors proposes a dividend of SEK 1.75 per share.

The market is deemed to have improved slightly compared with the year-earlier period. The UK market continued to grow and the Nordic market increased slightly. Combined, other relevant markets remained unchanged.

Organic sales growth was 3 per cent (neg: 1). Currency effects impacted net sales positively for the quarter in an amount of SEK 186 million (neg: 17).

The gross margin fell to 41.4 per cent (42.0), negatively impacted by a changed sales mix and the effect of the acquisition of Rixonway Kitchens, which was only partially offset by higher sales values.

Operating profit increased primarily due to higher sales values and lower costs.

Currency gains of approximately SEK 5 million (losses: 20) affected the Group’s operating profit, of which SEK 15 million (0) comprised translation effects and negative SEK 10 million (neg: 20) transaction effects.

Restructuring costs primarily pertained to the transition to the Group’s common standard dimension in Magnet and in Finland, but also to costs relating to the sale of Hygena and the acquisition of Rixonway Kitchens announced during the fourth quarter.

Return on capital employed including restructuring costs amounted to 8.9 per cent over the past twelve-month period (14.6), negatively affected by goodwill impairment in Hygena in the third quarter. 

Operating cash flow rose as a result of the positive change in working capital and higher earnings generation compared with the preceding year. 

Comments from the CEO
“Sales increased in our two largest regions and organic growth totalled 3 per cent. The operating margin continued to improve, meaning that it has now strengthened for a full eleven consecutive quarters. We expect to finalise the divestment of Hygena shortly. Following this transaction and with the additional improvement opportunities that we have, we will come closer to our operating-margin target of 10 per cent, although I do not expect the target to be achieved as early as 2015. We are continuing to work on generating organic growth through a number of initiatives. The transition to the Group’s standard dimension is progressing according to plan and we are now focusing on the successful integration of Rixonway Kitchens,” says Morten Falkenberg, President and CEO.


For further information
Please contact any of the following on: +46 (0)8 440 16 00 or +46 (0)705 95 51 00:
• Morten Falkenberg, President and CEO
• Mikael Norman, CFO
• Lena Schattauer, Head of Investor Relations