Update on developments related to the coronavirus
Nobia is being negatively impacted by the global spread of the coronavirus. Financial risks related to the situation include, but are not limited to, disruptions in the supply chain as well as lower demand of kitchens and unfavorable currency movements.
The financial impact of the virus outbreak, and the resulting business interruptions, are currently being assessed. As of now, softer demand in retail, an unfavorable currency impact and lower productivity are expected to impact Q1 profitability negatively compared to the same period last year.
Nobia has taken robust measures to mitigate the decline in profitability, including cost out activities and use of publicly funded subsidies. However, current developments indicate continued market volatility during Q2. Accordingly, further cost reductions and reduction of capital expenditures are expected in order to sustain a healthy cash flow and balance sheet within the debt/equity target of 100%.
We will continue to assess the market situation and the various government interventions so that we can formulate measured responses to the challenges. We will provide further updates not later than in connection with the interim report for the first quarter 2020, which will be published on 4 May.
For further information:
Tobias Norrby, Head of Investor Relations
+46 (0)8 440 16 07