Nobia, the parent company of national kitchen retailer Magnet, has reported that its UK operations have returned to profitability for the first time since 2019. In its Q3 results, the UK arm posted pre-tax profits of approximately £1 million, reversing a £2 million loss from the same quarter last year. Adjusted operating profits reached just over £160,000, while like-for-like retail sales rose by 5%, with average order values up 12% year-on-year.
© Magnet
Despite these gains, organic growth fell by 7%, reflecting ongoing challenges in the project market and a reduction in UK stores from 172 to 168. Magnet has been transitioning to an "asset-light" store model, focusing on smaller-format locations.
Nobia's CEO, Kristoffer Ljungfelt, highlighted that improved gross margins and disciplined cost management drove the positive performance. He also noted the opening of Nobia Park, a new production site in Sweden, as a key milestone in the company's strategic agenda.
Sophie Rose, the new UK head of region, has succeeded George Dymond and plans to continue the turnaround strategy. While the project market remains soft, Nobia aims to capitalise on strong consumer demand, expand higher-value product sales, and maintain strict cost control to sustain profitability.
Source: www.kbbreview.com
