Interim report January-March 2014

Net sales for the first quarter amounted to SEK 2,897 million (2,804). Organic growth totalled 3 per cent (neg: 2). No restructuring costs (­­–) impacted operating profit for the quarter. Operating profit amounted to SEK 97 million (62), corresponding to an operating margin of 3.3 per cent (2.2). Currency effects of approximately SEK 0 million affected the Group’s operating profit, of which SEK 5 million (0) comprised translation effects and negative SEK 5 million (0) comprised transaction effects. Profit after tax totalled SEK 47 million (25), corresponding to earnings per share of SEK 0.28 (0.15). Operating cash flow amounted to SEK 132 million (neg: 53).

In total, market performance was deemed to be unchanged compared with the year-earlier period. The UK market strengthened from a low level. The Nordic market is estimated to have remained unchanged, while most of the markets in Continental Europe weakened.

Organic sales increased 3 per cent (neg: 2), positively impacted by more delivery days than in the year-earlier period. Currency effects impacted net sales positively for the quarter in an amount of SEK 89 million (neg: 121). Optifit, which was divested during the second quarter of 2013, reported sales of SEK 74 million in the first quarter of 2013.

The gross margin rose to 40.6 per cent (39.9), positively impacted by higher sales values and lower prices of materials, and negatively affected by exchange-rate fluctuations and the sales mix.

Operating profit increased primarily due to the improved gross margin, which offset lower sales volumes.

Currency effects of approximately SEK 0 million (0) affected the Group’s operating profit, of which SEK 5 million (0) comprised translation effects and negative SEK 5 million (0) transaction effects.  

Return on capital employed including restructuring costs amounted to 15.6 per cent over the past twelve-month period (Jan-Dec 2013: 14.6).

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

Comments from the CEO
“Nobia’s sales increased during the seasonally weak first quarter. Our two largest regions displayed both organic growth and improved profitability. In the UK, Magnet’s transition to the Group’s common standard dimension is progressing according to plan. Also, since the beginning of the year, organised co-operation in logistics, sales and service has been taking place between Magnet and Hygena. In the Nordic region, the Myresjökök brand is being incorporated into Marbodal and the first franchise store (Keittömaailma) was introduced in an Isku store. Another 23 such stores will be opened throughout Finland during the year. Going forward, we will make further reductions in the complexity of the product range, while at the same time focusing on generating sales growth that will take us closer to achieving our operating margin target,” 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