Nobia Sales Down 18% in 3Q-202

SWEDEN - Nobia, one of the largest kitchen furniture manufacturers in Europe, is experiencing the impact of the current market dynamics. Notably, both private customer business and project business witnessed a decline in the third quarter.

As a result, the group's net sales dropped by 18% compared to the same quarter last year, amounting to SEK 3,101 million (EUR 262.3 million).

Despite this significant decline, the operating result remained relatively consistent with the previous year. Profit, excluding special items (IAC), amounted to SEK 51 million (EUR 4.3 million), down from SEK 78 million (EUR 6.6 million) in the preceding year.

The company reports several positive developments at the operational level. Notably, Nobia achieved a reduction in selling and administrative expenses, amounting to SEK 140 million (EUR 11.8 million) in comparable currencies during the quarter, with SEK 90 million (EUR 7.6 million) attributable to the previously announced restructuring program. Since the program's commencement at the beginning of the year, it has led to cost savings of SEK 194 million (EUR 16.4 million).

Jon Sintorn, President and CEO of Nobia, commented, “Nobia delivered a profitable third quarter despite a challenging market, addressing macroeconomic headwinds through cost-cutting measures and bolstering its financial position. It's essential to keep in mind that the kitchen market is cyclical and will eventually return to robust growth in the long term, with Nobia well-positioned in this market.”

Upon the full implementation of the restructuring program in the second quarter of 2024, it is anticipated to result in annual cost reductions of approximately SEK 350 million (EUR 29.6 million). Sintorn also noted that raw material costs are beginning to decrease, and their production facility in Jönköping is progressing as planned, allowing them to ramp up kitchen production and fulfill complete kitchen orders by the end of the next year.