Leading European kitchen specialist Nobia shares its year-end report 2023. The period was marked by both challenges and strategic decisions for the company. Despite facing a decline in net sales, their commitment to operational efficiency and strategic realignment has positioned them for resilience in the face of market fluctuations.
Fourth quarter summary
- Net sales declined by -19% to SEK 3,050m (3,780).
- On an organic basis, sales declined by -22% (2).
- Gross margin improved to 35.1% (33.4).
- Operating profit excl. items affecting comparability (IAC) was SEK 3m (25).
- Operating profit amounted to SEK -75m (-131).
- Items affecting comparability amounted to SEK -78m (-156).
- The decline in operating profit, excl. IAC, was largely due to the sales volume decline, which is estimated to be in line with market development
- Profit after tax amounted to SEK -174m (-166) corresponding to earnings per share
after dilution of SEK -1.04 (-0.98). - Operating cash flow amounted to SEK -188m (-81).
- Jon Sintorn announced his resignation and will leave for a position as CEO
of another company.
Photo: Nobia.
Events after the close of the quarter
- Sale and leaseback transaction of Jönköping factory property closed in February.
- Sale of Bribus and ewe, in line with decision to focus on core Nordic and UK markets.
- The Board proposes that no dividend shall be paid for the fiscal year 2023.
- Agreement to amend and extend the Group's credit facilities.
- The Board resolved on a rights issue of approx. SEK 1,250m, subject to approval by an Extraordinary General Meeting. The rights issue is fully covered by subscriptions and guarantee undertakings.
CEO comment
'Nobia executed multiple strategic initiatives during 2023 that will benefit us going forward. We remained profitable at the operating profit level excluding items affecting comparability, despite very tough market conditions and currency headwind, and we have improved the gross margin in all three regions. We also made the strategic decision to focus on the core Nordic and UK markets, leading to divestments of non-core operations in the Netherlands and Austria. Our strategic initiatives focus on maximizing cost efficiency, realising the full potential of the Nordic region, and continuing to execute the UK transformation program.
We will continue to work relentlessly on protecting our earnings, executing our strategic initiatives, as well as ensuring that we are ready to capitalize on opportunities when market demand returns,' says Jon Sintorn, President and CEO.
More information:
Nobia
www.nobia.com