SWEDEN –  The Board of Directors of Nobia AB, a global leader in the kitchen furniture industry, has decided to withdraw previously communicated proposal for a dividend of SEK 4.00 per share, in total approximately SEK 675 million (EUR 61 million).

In addition, Group management has decided to cut their salaries by 20 percent. Financial targets concerning debt/equity ratio and dividend policy will remain unchanged. The financial position for the group remains stable with available cash and unused credit facilities of approximately SEK 1.3 Billion (EUR 118 million).

Furthermore, Nobia has initiated temporary layoffs of approximately 3,000 employees, of which around 2,300 refer to the UK where the kitchen store network and supply chain is closed on a temporary basis following UK regulations and recommendations. The other layoffs impact operations across different parts of the Group where all countries are affected. The majority of the layoffs will be backed by state subsidies.

In addition, the chairman of the nomination committee has informed the company that there will not be any proposed increases of board remuneration.

The above decisions have been made in light of current market instability and uncertainties regarding economic impacts of the coronavirus, which is negatively impacting Nobia’s business due to, amongst other impacts, lower demand of kitchens.