Nobia reports “stabilisation and recovery” fragmented in Q3 sales

Net sales for the third quarter amounted to SEK 3,105million, down from (3,265m), with organic growth of -2%

03 Nov, 20

Kitchen furniture group Nobia announced net sales for the third quarter amounted to SEK 3,105million, down from (3,265m), with organic growth of -2%.

Nobia invests SEK2billion in Swedish factory

 

Operating profit was reported as SEK 195m down from 267m but operating cash flow increased to SEK484million, with net debt reduced to SEK483m from 1,562m.

Following a challenging second quarter for the Nobia Group, president and CEO Jon Sintorn said: “the third quarter was characterised by stabilisation and recovery for several of our businesses.

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“The picture is however fragmented as various market segments and geographies are in different places of the pandemic, with different implications depending on the governmental restrictions in place.”

Although he reported a “fast order recovery in the retail segment” backed by low interest rates and upswing in home renovation, Jon Sintorn said this was not reflected in the project market.

He commented: “The project market remains negatively impacted, especially in the UK, with both social housing and the London property market lagging behind pre-pandmic activity levels.”

The group organic sales trend was down 2% in the third quarter, with the UK down by 9% but offset by the Nordic region which was 3% ahead and Central Europe charting double-digit growth.

Sintorn was positive about the short-term and long-term future of the group, supporting by a growth of interest in home renovation: “Looking ahead, the near furture still holds business uncertainties as new restrictions may come into force, but we currently deem the risk of temporary factory closures to be limited.

“As long as we can continue to operate in a normal manner, we believe that the growing trend in home renovations, growth in online visits and digital design appointments will convert into growing order books over time.

“I am confident that our strong customer commitment, the aglity in which our employees operate in this new environment, and a solid balace sheet to support our strategic agenda will provide business opportunities in both the short and long-term.”