Kitchen furniture manufacturer Nobia Q2 sales were SEK 3.751million, from SEK 3,503 last year, with operating profit at SEK 391million, as opposed to SEK 387million.
It reported the UK market continued to be “soft on the back of Brexit uncertainty”, and stated retail sales were “challenging” in terms of price and volume.
However Nobia reported the company continued to grow sales through channels such as Magnet Trade.
CEO and President of Nobia Morten Falkenberg added: “Thus, with an organic growth in the UK of -1% we estimate to have captured shares in a declining market.
“Deliveries to our larger projects in London are also progressing well which should give tailwind going into the second half of 2019.”
However the softened market has been mitigated by sales in the Nordic region, delivering a 2% organic sales growth with improved sales in Sweden, and an improved supply chain ” compared to a difficult last year”.
Nobia cited for further efficiency improvements, the company is reviewing its manufacturing footprint and consolidating our ranges to the Nobia standard (K20) platform.
It also reported the company will be implementing price increases and cost out initiatives to offset the mounting inflationary pressure.
In addition, in Central Europe its Bribus brand is “performing above expectations” and “we are now investing in the supply chain to cater for profitable growth”.
Morten Falkenburg added: “We believe the high market volatility and inflationary pressure is likely to continue, especially on the back of Brexit.
“But our recent trend in Nordic retail and UK trade coupled with improved supply chain performance puts us in a favourable position to grow market shares and improve profitability”.
Bowing out after nine years at the helm, Falkenburg concluded.”I have now ended by final quarter and will soon hand over to the newly-appointed CEO Joe Sintorn.
“I am proud to hand over a company that has a great set of assets in its dedicated employees and strong kitchen brands, and is several times more profitable and financially stronger than when I took over.
“I am convinced Jon together with our employees will lead Nobia to further success.”