A prominent Swedish kitchen furniture group, owner of UK brand Magnet, has reported a 5% organic sales decline in Q2 2025, with total sales down to SEK 2,695m from SEK 2,933m. However, pre-tax losses narrowed to SEK -103m from SEK -185m, reflecting the impact of cost-cutting measures and store closures.
© Nobia
UK operations for Nobia saw a 7% drop in organic sales to SEK 1,181m, attributed to ongoing weakness in the project market and the closure of 17 underperforming stores. Despite this, Magnet's consumer sales improved, driven by higher-end product launches and a stronger product mix, lifting the UK gross margin to 41.6%.
Nobia continues transitioning to an "asset-light" model in the UK to restore profitability, though market conditions and inflation remain challenging. In the Nordics, net sales fell by 3% to SEK 1,514m, with consumer demand showing resilience while project sales lagged.
CEO Kristoffer Ljungfelt said cost-saving efforts and the ramp-up of Nobia's new Jönköping factory were key to future growth. The factory, recognised with a BREEAM "Excellent" rating, is expected to be fully operational by the end of 2025 and will play a pivotal role in Nobia's sustainability strategy and supply chain transformation.
Source: www.bigfurnituregroup.com
