SWEDEN - Nobia, one of the largest global Kitchen furniture manufacturers, reported that Net sales for the second quarter 2020 amounted to SEK 2,741 million (EUR 266.2 million), a 27% drop against the same period, year prior.

Organic growth was -25% . Operating profit amounted to SEK -43 million (EUR - 4.1 million), corresponding to an operating margin of -1.6%. Operating profit was impacted by restructuring costs of SEK -93 million (EUR - 9 million) and bad debt provisions of SEK -15 million (EUR - 1.4 million). Net income after tax amounted to SEK -56 million (EUR -5.4 million).

According to Nobia President and CEO, Jon Sintorn “It has been a challenging quarter in unprecedented times. We came from a situation with relatively good demand and orderbook in March, to an escalating corona pandemic with national lockdowns, closure of factories and distribution etc., preventing us from operating in a normal manner. On a positive note, demand for home renovation, and thus also the demand for kitchens, has gradually improved after the steep decline in April, giving us the opportunity to allocate more resources to sales again. By mid-June we had reopened most of our physical stores and further strengthened our digital sales capabilities to better service consumers online.”

Looking to the future Jon Sintorn added, “Although our operations are normalizing, we foresee that the short-term performance will continue to be impacted by the global recession, albeit not to the same extent as during the second quarter. Having said that, I am certain that the structural measures we have put in place, the continued execution on our strategic priorities and the strong balance sheet will provide solid financials and opportunities both short- and long term.”