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Nobia
Quarterly Report • Jul 20, 2023
3084_ir_2023-07-20_a35ad876-226a-43e4-b27d-ca6114205856.pdf
Quarterly Report
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Interim Report Second quarter 2023
Second quarter summary
- Net sales declined to SEK 3,562m (3,890).
- On an organic basis, sales declined by -13% (3).
- Operating profit amounted to SEK 61m (62).
- Operating profit, excl. items affecting comparability of SEK -22m (-150), decreased to SEK 83m (212), largely due to the sales volume decline.
- The operating margin, excl. items affecting comparability, was 2.3% (5.4).
- Profit after tax amounted to SEK 1m (17) corresponding to earnings per share after dilution of SEK 0,01 (0.10).
- Operating cash flow amounted to SEK -276m (286).
| Q2 | Jan-Jun | Jan-Dec | 12 mos | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2023 | Δ% | 2022 | 2023 | Δ% | 2022 | rolling | Δ% | |
| Net sales, SEK m | 3,890 | 3,562 | -8 | 7,669 | 7,222 | -6 | 14,929 | 14,482 | -3 |
| Gross margin, % | 36.3 | 35.6 | – | 37.3 | 34.1 | – | 35.9 | 34.3 | – |
| Gross margin excl. IAC, % | 36.6 | 35.5 | – | 37.4 | 35.7 | – | 36.1 | 35.2 | – |
| Operating margin before depr./imp. (EBITDA), % | 7.8 | 7.1 | – | 9.0 | 3.8 | – | 7.3 | 4.7 | – |
| Operating profit (EBIT), SEK m | 62 | 61 | -2 | 244 | -156 | n.a. | 191 | -209 | n.a. |
| Operating profit (EBIT), excl IAC, SEK m | 212 | 83 | -61 | 394 | 164 | -58 | 497 | 267 | -46 |
| Operating margin, % | 1.6 | 1.7 | – | 3.2 | -2.2 | – | 1.3 | -1.4 | – |
| Operating margin excl IAC, % | 5.4 | 2.3 | – | 5.1 | 2.3 | – | 3.3 | 1.8 | – |
| Profit after financial items, SEK m | 22 | 2 | -91 | 183 | -268 | n.a. | 30 | -421 | n.a. |
| Profit after tax, SEK m | 17 | 1 | -94 | 145 | -213 | n.a. | -2 | -360 | n.a. |
| Profit/loss after tax, excl IAC, SEK m | 136 | 19 | -86 | 264 | 41 | -84 | 241 | 18 | -93 |
| Earnings per share, before dilution, SEK | 0.10 | 0.01 | -90 | 0.86 | -1.27 | n.a. | -0.01 | -2.14 | n.a. |
| Earnings per share, before dilution excl IAC, SEK | 0.81 | 0.10 | -88 | 1.57 | 0.24 | -85 | 1.43 | 0.10 | -93 |
| Earnings per share, after dilution, SEK | 0.10 | 0.01 | -90 | 0.86 | -1.27 | n.a. | -0.01 | -2.14 | n.a. |
| Earnings per share, after dilution exkl IAC, SEK | 0.81 | 0.10 | -88 | 1.57 | 0.24 | -85 | 1.43 | 0.10 | -93 |
| Operating cash flow, SEK m | 286 | -276 | n.a. | -134 | -315 | n.a. | -746 | -927 | n.a. |
CEO comment
Total sales for the Group in the quarter was down -13% organically. The drop in volume is larger as we have implemented price increases over the past year. In addition to the price increases, we have also imposed restructuring measures primarily in the UK and reduced factory staffing in the Nordic region, but however it was not enough to mitigate the effects of the market downturn. Primarily due to the volume decline, operating profit for the Group decreased to SEK 83m (212), excl. items affecting comparability. The development is of course unsatisfactory, however, it reflects the development of the market.
The second quarter continued to be impacted by challenging market conditions. Construction activity has rapidly declined and disposable income for consumers is decreasing, adversely impacting demand for new kitchens from both project customers and consumers.
In the Nordic region sales contracted organically by -17%, which had a large impact on earnings. In addition, earnings were also affected by unfavourable mix as the higher gross margin retail sales dropped the most. In the UK, organic growth was down -16%. Operating income also declined, mitigated by savings from restructuring.
The restructuring programme is being executed according to plan and delivering the expected savings. In the UK we have closed two factories and reduced overhead resources and we are also seeing desired results from changes to how we conduct business. The project business is being reduced in size by exiting unprofitable contracts, and the remaining parts are becoming financially healthy following price adjustments. In the trade and retail segments, we now have the right incentives in place to promote profitable growth and we are also putting stronger emphasis on making our product range more relevant in the higher value mass premium part of the market.
As presented at the Capital Markets Update in March, the next step for the UK transformation is to explore and pilot improvements to our distribution network in the form of asset light models.
Already at the time for the decision to invest in the new plant we anticipated the large cash outflow in 2022-2024. We have agreed with our banks to adjust the terms for the funding facilities to reflect the current macro and market conditions. We are fully committed to reduce leverage and explore multiple leverage reduction options such as sale and leasebacks of assets.
It is a pleasure to announce that Henrik Skogsfors has been appointed new CFO for the Group. Henrik has done a great job serving as Acting CFO during the last half-year.
Construction of the new factory in Jönköping continues to progress well and production machine installations are ongoing. Other priorities include the UK restructuring, securing direct material price reductions, leverage reduction options and further intensified sales activities as we see continued soft market conditions ahead.
Jon Sintorn President and CEO
Second quarter consolidated
Market overview
All kitchen markets remain subdued by the challenging macroeconomic situation following a period of high inflation, continuously increasing interest rates and lower construction activity. As a consequence, consumers are cutting back on purchasing of capital goods including kitchens and demand from project customers is declining due to the decreasing housing construction activity. Price increases to mitigate higher input costs are supporting the value of the kitchen markets, but measured as number of kitchen cabinets sold then markets are decreasing in size. The project segment has longer lead times, thus providing some resilience before the full impact of the lower housing construction is seen.
Net sales, earnings and cash flow
The Group's net sales decreased to SEK 3,562m (3,890) with organic decline of -13% (3). The Nordic region declined organically by -17% (6), the UK region by -16% (5), while Portfolio Business Units had organic growth of 14% (-11), however largely due to the cyber incident that prevented deliveries to customers in the Netherlands in June last year.
The gross margin decreased to 35.6% (36.3) and gross profit was SEK 1,268m (1,414). Operating profit amounted to SEK 61m (62). Operating profit excl. items affecting comparability of SEK -22m (-150) amounted to SEK 83m (212), corresponding to a margin of 2.3% (5.4). Price increases and restructuring savings (of around SEK 70m) impacted positively, however it was more than offset by impact from the substantially lower sales volume and unfavourable mix development. Changes in exchange rates negatively impacted operating profit by approx. SEK -10m. Items affecting comparability of SEK 22m mainly refer to costs related to the transition to the new factory under construction in Jönköping.
Operating cash flow amounted to SEK -276m (286). The lower cash flow was mainly due to timing effects in working capital and the lower earnings. Cashflow from investing activities, of which the majority was related to the construction of the factory in Jönköping, amounted to SEK -343m (-407). Net debt excl. IFRS16 leases and pensions amounted to SEK 2,505m (894).
Analysis of net sales
| Q2 | ||||
|---|---|---|---|---|
| Δ% | SEK m | |||
| 2022 | 3,890 | |||
| Organic growth | -13 | -535 | ||
| -of which Nordic region | -17 | -382 | ||
| -of which UK region | -16 | -220 | ||
| -of which Portfolio BUs | 14 | 67 | ||
| Currency effects | 5 | 207 | ||
| 2023 | -8 | 3,562 | ||
Currency effect on operating profit
| Q2 | |||
|---|---|---|---|
| Translati | Transacti | Total | |
| SEK m | on effect | on effect | |
| Nordic region | 15 | -15 | 0 |
| UK region | -5 | -10 | -15 |
| Portfolio BUs | 5 | 0 | 5 |
| Group | 15 | -25 | -10 |
| Group cost and | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nordic | UK | Portfolio BUs | eliminations | Group | |||||||
| Q2 | Q2 | Q2 | Q2 | Q2 | |||||||
| SEKm | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | Δ% |
| Net sales | 2,155 | 1,858 | 1,286 | 1,148 | 450 | 556 | -1 | 0 | 3,890 | 3,562 | -8 |
| Gross profit | 767 | 590 | 530 | 487 | 106 | 174 | 11 | 17 | 1,414 | 1,268 | -10 |
| Gross profit excl. IAC | 768 | 590 | 532 | 485 | 106 | 174 | 16 | 17 | 1,422 | 1,266 | -11 |
| Gross margin, % | 35.6 | 31.8 | 41.2 | 42.4 | 23.6 | 31.3 | – | – | 36.3 | 35.6 | – |
| Gross margin excl. IAC,% | 35.6 | 31.8 | 41.4 | 42.2 | 23.6 | 31.3 | – | – | 36.6 | 35.5 | – |
| Operating profit | 242 | 83 | -101 | -14 | 9 | 35 | -88 | -43 | 62 | 61 | -2 |
| Operating profit excl. IAC, SEKm | 248 | 102 | 14 | -11 | 9 | 36 | -59 | -44 | 212 | 83 | -61 |
| Operating margin, % | 11.2 | 4.5 | -7.9 | -1.2 | 2.0 | 6.3 | – | – | 1.6 | 1.7 | – |
| Operating margin excl IAC, % | 11.5 | 5.5 | 1.1 | -1.0 | 2.0 | 6.5 | – | – | 5.4 | 2.3 | – |
Second quarter, the regions
Nordic region
Net sales in the Nordic region decreased to SEK 1,858m (2,155). Sales declined by -17% (6) on an organic basis, with declines in all customer segments.
The gross margin decreased to 31.8% (35.6). Operating profit decreased to SEK 83m (242). Excl. items affecting comparability of SEK -19m (-6), operating profit decreased to SEK 102m (248) excl. and the corresponding margin declined to 5.5% (11.5). Price increases continued to have good effect; however the profit was heavily burdened mainly by the volume decline and unfavourable mix impact on the back of decrease of higher margin consumer sales. Changes in exchange rates had a neutral effect on operating profit.
UK region
Net sales in the UK region decreased to SEK 1,148m (1,286). Sales declined by -16% (5) on an organic basis, to some extent attributable to exiting parts of the project business.
The gross margin was slightly higher at 42.4% (41.2). Operating profit amounted to SEK -14m (-101). Operating profit excl. items affecting comparability amounting to SEK -3m (-115) declined to SEK -11m (14), and the corresponding operating margin was -1.0% (1.1). Profit was supported by impact from price increases, reduced headcount and lower expenses following implemented restructuring measures. This was however offset mainly by negative effects from the substantially lower sales volume. Changes in exchange rates negatively impacted operating profit by approx. SEK-15m.
Portfolio Business Units
Net sales increased to SEK 556m (450). Organic growth was 14% (-11). Sales in the second quarter last year in the Netherlands were strongly affected by the cyber security incident that limited production and shipments. Austria and Commodore & CIE in the UK reported lower sales.
The gross margin increased to 31.3% (23.6). Operating profit increased to SEK 36m (9) and the operating margin increased to 6.5% (2.0), excluding items affecting comparability. Netherlands had improved earnings. The loss in Commodore & CIE was slightly reduced while Austria reported lower results impacted by the weaker market. Changes in exchange rates positively impacted operating profit by approx. SEK 5m.
January - June, consolidated
- Net sales for the first six months totalled SEK 7,222 (7,669).
- Sales declined by -9% on an organic basis.
- Operating profit amounted to SEK -156m (244).
- Operating profit excl. items affecting comparability amounted to SEK 164m (394), corresponding to an operating margin of 2.3% (5.1).
- Items affecting comparability amounted to SEK -320m (-150).
- Profit after tax amounted to SEK -213m (145), corresponding to earnings per share after dilution of -1.27 SEK (0.86).
- Operating cash flow was SEK -315m (-134).
Net sales, earnings and cash flow
The Group's net sales decreased to SEK 7,222m (7,669) with organic decline of -9% (5). The Nordic region declined organically by -12% (7), the UK region by -11% (-6), while Portfolio Business Units organic grew 7% (-9), largely due to the Netherlands that was negatively impacted by the cyber security incident in June last year.
The gross margin decreased to 34.1% (37.3) and gross profit was SEK 2,463m (2,860). Operating profit amounted to SEK -156m (244). Operating profit, excluding items affecting comparability, amounted to SEK 164m (394), corresponding to a margin of 2.3% (5.1). Items affecting comparability mainly referring to restructuring costs were SEK -320m (-150), se page 15 for details. Price increases more than compensated for the negative impact from inflation, however the volume decline had a considerable negative effect. Restructuring measures contributed with around SEK 100m in savings. Changes in exchange rates negatively impacted operating profit by SEK -35m.
Operating cash flow for the first six months amounted to SEK -315m (-134). Cash flow from working capital improved while the lower operating profit impacted cash flow negatively. Cashflow from investing activities remained on a high level primarily related to the construction of the factory in Jönköping.
Analysis of net sales
| Jan-Jun | ||||
|---|---|---|---|---|
| Δ% | SEK m | |||
| 2022 | 7,669 | |||
| Organic growth | -9 | -756 | ||
| -of which Nordic region | -12 | -536 | ||
| -of which UK region | -11 | -286 | ||
| -of which Portfolio BUs | 7 | 66 | ||
| Currency effects | 4 | 309 | ||
| 2023 | -6 | 7,222 | ||
Currency effect on operating profit
| Jan-Jun | |||||
|---|---|---|---|---|---|
| Translati | Transacti | Total | |||
| SEK m | on effect | on effect | |||
| Nordic region | 25 | -35 | -10 | ||
| UK region | -5 | -25 | -30 | ||
| Portfolio BUs | 5 | 0 | 5 | ||
| Group | 25 | -60 | -35 |
| Group cost and | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nordic | UK | Portfolio BUs | eliminations | Group | |||||||
| Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | |||||||
| SEKm | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | Δ% |
| Net sales | 4,195 | 3,806 | 2,565 | 2,375 | 910 | 1,041 | -1 | 0 | 7,669 | 7,222 | -6 |
| Gross profit | 1,504 | 1,179 | 1,088 | 960 | 240 | 287 | 28 | 37 | 2,860 | 2,463 | -14 |
| Gross profit excl. IAC | 1,505 | 1,215 | 1,090 | 1,018 | 240 | 307 | 33 | 37 | 2,868 | 2,577 | -10 |
| Gross margin, % | 35.9 | 31.0 | 42.4 | 40.4 | 26.4 | 27.6 | – | – | 37.3 | 34.1 | – |
| Gross margin excl. IAC,% | 35.9 | 31.9 | 42.5 | 42.9 | 26.4 | 29.5 | – | – | 37.4 | 35.7 | – |
| Operating profit | 455 | 98 | -101 | -179 | 29 | 11 | -139 | -86 | 244 | -156 | n.a |
| Operating profit excl. IAC, SEKm | 461 | 207 | 14 | -6 | 29 | 48 | -110 | -85 | 394 | 164 | -58 |
| Operating margin, % | 10.8 | 2.6 | -3.9 | -7.5 | 3.2 | 1.1 | – | – | 3.2 | -2.2 | – |
| Operating margin excl IAC, % | 11.0 | 5.4 | 0.5 | -0.3 | 3.2 | 4.6 | – | – | 5.1 | 2.3 | – |
| Net financial items | -61 | -112 | |||||||||
| Profit after financial items | 183 | -268 |
Other information
Financing
Nobia's long-term financing consists of two multicurrency revolving credit facilities totalling SEK 5 billion. A SEK 2 billion facility and one SEK 3 billion facility, both with maturity in December 2025. The general terms and conditions, primarily related to covenants, for the financing facilities were renegotiated during the quarter. At end of June 2023, SEK 3,200m (1,800) had been utilised. Group cash and cash equivalents amounted to SEK 667m (905).
Net debt excluding IFRS 16 lease liabilities and pensions amounted to SEK 2,505m (894). IFRS 16 lease liabilities amounted to SEK 1,718m (1,679) and pension provisions amounted to SEK 383m (95). The net debt/equity ratio, excluding IFRS 16 lease liabilities and pensions, was 52% (18). Leverage, (net debt/EBITDA, excluding IFRS 16 leases, pensions and items affecting
comparability on 12 months rolling basis) was 4.8 times (0.8). The fact that the
Leverage (net debt/EBITDA)
economic downturn coincides with our planned high investment level has resulted in an increasing leverage. As communicated at the capital markets update in March, we continue to explore different leverage reduction options such as sale and leasebacks of assets.
Net financial items amounted to SEK -112m (-61) for the first half-year, of which net of returns on pension assets and interest expense on pension liabilities was SEK -5m (-7), interest on leases was SEK -24m (-17) and other net interest expense was SEK -83m (-37).
Construction of the new factory in Jönköping
Installation and testing of production machines is running according to plan. The first commercial manufacturing of kitchen components has started at small scale. Machinery installations will continue during the year until the factory has full manufacturing capability of complete kitchens in 2024. The total investment in the factory until completion will be around SEK 3.5bn, of which manufacturing equipment is approximately SEK 2bn and the factory building SEK 1.5bn, with the majority of the investments made between 2022 and 2024. Up until the end of June 2023, a total of SEK 2.1bn has been invested in the new factory.
Cost reduction programme
All initiatives in the programme are running according to plan and delivering expected savings. As of June 30, 2023, approximately SEK 100m of savings had been realized.
In January 2023, Nobia announced a cost reduction program aiming to realise annual savings in excess of SEK 300m. Savings will be realized gradually, reaching full effect in the second quarter of 2024. The programme involves repositioning the UK project business, including consolidation of the manufacturing footprint whereby two factories will be closed, flattening of the central UK organisation and exiting select parts of the project business that has insufficient profitability. Furthermore, certain functions in the Nordic region and at Group level will be reduced in size. The first quarter 2023 includes costs of SEK 298m related to the programme, recorded as items affecting comparability. Approximately SEK 85m of the items affecting comparability refers to non-cash items. A total of around 500 employees are affected by the programme. Items affecting comparability are specified on page 15.
Assets held for sale
Nobia's management has decided to sell the production facility in Dewsbury in the UK and the process of finding a buyer is currently underway. The production plant has thus been classified as an asset held for sale and is recognised at book value, which is lower than the fair value less disposal costs. No impact has been recorded in the income statement. The transaction is expected to close in the second half of 2023.
Items affecting comparability
The second quarter 2023 includes items affecting comparability of SEK 22m (150). The items refer to costs related to the transition to the new factory that is being built in Jönköping, and currency effects on the items affecting comparability that were taken in the first quarter. The first quarter 2023 included items affecting comparability related to costs for the ongoing restructuring programme amounting to SEK 298m (150). Items affecting comparability are specified on page 15.
New CFO appointed
Henrik Skogsfors has been appointed Group Chief Financial Officer (CFO) as of July 20. Henrik has been serving as Acting CFO for the past half-year and Head of Group Business Control, Accounting and Treasury since 2019.
Risks
Financial risks refer primarily to currency exchange rates, interest rates, financing, tax and credit risks. In the ordinary course of business, the Group is exposed to legal risks such as commercial, product liability and other disputes and provides for them as appropriate. A general economic downturn, cybersecurity, a widespread financial crisis or other macroeconomic disturbances may, directly or indirectly, affect the Group negatively both in terms of revenues and profitability. For a more detailed description of Nobia's risks and uncertainties, as well as risk management, refer to the 2022 Annual Report.
The macroeconomic turbulence in the global markets is and will continue to affect the Group's market environment. Increased inflation in the form of increased direct material prices, energy cost as well as transport, have resulted in higher production costs. Rising inflation and higher interest rates have had and may continue to have a short-term negative impact on market demand.
Cost reduction activities are being implemented, manufacturing capacity has been adapted and the Group is continuously assessing if further measures need to be taken given the market development. Taking into account the high level of investments to complete the new factory in Jönköping by 2024, the Group is closely monitoring its financing situation.
The Board of Directors and CEO assure that this six-month report provides a fair view of the Parent Company's and the Group's operations, financial position and profits, and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.
Stockholm, 20 July 2023
Jan Svensson Chair
Fredrik Ahlin Board member
Tony Buffin Board member
Marlene Forsell Board member
Nora Førisdal Larssen Board member
David Haydon Board member
Carsten Rasmussen Board member
Jon Sintorn President & CEO
Per Bergström Employee representative
Bekke Söderhielm Employee representative
This half-year report has not been subject for review by the Group's auditors.
Nobia AB, Corporate Registration Number 556528-2752
Consolidated income statement
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
|---|---|---|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Net sales | 3,890 | 3,562 | 7,669 | 7,222 | 14,929 | 14,482 |
| Cost of goods sold | -2,476 | -2,294 | -4,809 | -4,759 | -9,566 | -9,516 |
| Gross profit | 1,414 | 1,268 | 2,860 | 2,463 | 5,363 | 4,966 |
| Selling and administrative expenses* | -1,386 | -1,265 | -2,673 | -2,709 | -5,317 | -5,353 |
| Other income/expenses* | 34 | 58 | 57 | 90 | 145 | 178 |
| Operating profit | 62 | 61 | 244 | -156 | 191 | -209 |
| Net financial items | -40 | -59 | -61 | -112 | -161 | -212 |
| Profit after financial items | 22 | 2 | 183 | -268 | 30 | -421 |
| Tax | -5 | -1 | -38 | 55 | -32 | 61 |
| Profit after tax | 17 | 1 | 145 | -213 | -2 | -360 |
| Total profit attributable to: | ||||||
| Parent Company shareholders | 17 | 1 | 145 | -213 | -2 | -360 |
| Earnings per share before dilution, SEK | 0.10 | 0.01 | 0.86 | -1.27 | -0.01 | -2.14 |
| Earnings per share after dilution, SEK | 0.10 | 0.01 | 0.86 | -1.27 | -0.01 | -2.14 |
*The consolidated income statement for first quarter 2023 has been adjusted, see Note 6 on page 15.
Consolidated statement of comprehensive income
| Q2 | Jan-Jun | 12 mos | ||||
|---|---|---|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 | 2023 | Jan-Dec 2022 |
rolling |
| Profit after tax | 17 | 1 | 145 | -213 | -2 | -360 |
| Other comprehensive income | ||||||
| Items that may be reclassified subsequently to | ||||||
| profit or loss | ||||||
| Exchange-rate differences attributable to translation of | ||||||
| foreign operations | 138 | 272 | 171 | 331 | 329 | 489 |
| Cash flow hedges before tax (1) | 37 | 20 | 31 | 32 | 39 | 40 |
| Tax attributable to change in hedging reserve | ||||||
| for the period (2) | -8 | -4 | -7 | -8 | -7 | -8 |
| 167 | 288 | 195 | 355 | 361 | 521 | |
| Items that will not be reclassified to profit or loss | ||||||
| Remeasurements of defined benefit pension plans | -5 | -26 | 113 | -10 | -187 | -310 |
| Tax relating to remeasurements of defined benefit | ||||||
| pension plans | 0 | 4 | -30 | -1 | 46 | 75 |
| -5 | -22 | 83 | -11 | -141 | -235 | |
| Other comprehensive income | 162 | 266 | 278 | 344 | 220 | 286 |
| Total comprehensive income | 179 | 267 | 423 | 131 | 218 | -74 |
| Total comprehensive income attributable to: | ||||||
| Parent Company shareholders | 179 | 267 | 423 | 131 | 218 | -74 |
(1) Reversal recognised in profit and loss amounts to a SEK 19m (4).
New provision amounts to SEK 40m (25). (Jan-Dec 2022; 25).
(2) Reversal recognised in profit and loss amounts to a SEK -4m (-1).
New provision amounts to SEK -8m (-5). (Jan-Dec 2022; -5).
Consolidated balance sheet
| 30 Jun | 30 Jun | 31 Dec | |
|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 |
| ASSETS | |||
| Goodwill | 3,160 | 3,461 | 3,232 |
| Other intangible fixed assets | 400 | 478 | 418 |
| Tangible fixed assets | 2,435 | 3,661 | 3,131 |
| Right-of-use assets | 1,733 | 1,778 | 1,826 |
| Long-term receivables, interest-bearing (IB) | 0 | 0 | 0 |
| Long-term receivables | 87 | 87 | 86 |
| Deferred tax assets | 68 | 364 | 240 |
| Total fixed assets | 7,883 | 9,829 | 8,933 |
| Inventories | 1,437 | 1,417 | 1,478 |
| Accounts receivable | 1,694 | 1,684 | 1,495 |
| Current receivables, interest-bearing (IB) | 1 | 1 | 2 |
| Other receivables | 584 | 619 | 524 |
| Total current receivables | 2,279 | 2,304 | 2,021 |
| Cash and cash equivalents (IB) | 905 | 667 | 340 |
| Assets held for sale | – | 57 | – |
| Total current assets | 4,621 | 4,445 | 3,839 |
| Total assets | 12,504 | 14,274 | 12,772 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Share capital | 57 | 57 | 57 |
| Other capital contributions | 1,460 | 1,461 | 1,460 |
| Reserves | 181 | 701 | 347 |
| Profit brought forward | 3,222 | 2,628 | 2,851 |
| Total shareholders' equity attributable to Parent Company shareholders | 4,920 | 4,847 | 4,715 |
| Total shareholders' equity | 4,920 | 4,847 | 4,715 |
| Provisions for pensions (IB) | 95 | 383 | 384 |
| Other provisions | 27 | 8 | 40 |
| Deferred tax liabilities Lease liabilities, interest-bearing (IB) |
81 1,354 |
72 1,379 |
60 1,418 |
| Other long-term liabilities, interest-bearing (IB) | 1,800 | 3,173 | 2,181 |
| Other long-term liabilities, non interest-bearing | 8 | 4 | 4 |
| Total long-term liabilities | 3,365 | 5,019 | 4,087 |
| Current lease liabilities, interest-bearing (IB) | 325 | 339 | 339 |
| Accounts payable | 2,055 | 2,244 | 2,038 |
| Current liabilities and provisions | 1,839 | 1,825 | 1,593 |
| Total current liabilities | 4,219 | 4,408 | 3,970 |
| Total shareholders' equity and liabilities | 12,504 | 14,274 | 12,772 |
Changes in consolidated shareholders' equity
| Attributable to Parent Company shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Share | Other | Exchange-rate | Cash-flow | Profit | Total | ||||
| capital | capital | differences | hedges | brought | share | ||||
| contri | attributable to | after tax | forward | holders | |||||
| butions | translation of | equity | |||||||
| foreign operations | |||||||||
| SEK m | |||||||||
| Opening balance, 1 Jan 2022 | 57 | 1,465 | -10 | -4 | 3,415 | 4,923 | |||
| Profit for the period | – | – | – | – | 145 | 145 | |||
| Other comprehensive income for the period | – | – | 171 | 24 | 83 | 278 | |||
| Total comprehensive income for the period | – | – | 171 | 24 | 228 | 423 | |||
| Dividend | – | – | – | – | -421 | -421 | |||
| Allocation of share saving schemes | – | -5 | – | – | – | -5 | |||
| Closing balance, 30 Jun 2022 | 57 | 1,460 | 161 | 20 | 3,222 | 4,920 | |||
| Opening balance, 1 Jan 2023 | 57 | 1,460 | 319 | 28 | 2,851 | 4,715 | |||
| Profit for the period | – | – | – | – | -213 | -213 | |||
| Other comprehensive income/loss for the period | – | – | 331 | 24 | -11 | 344 | |||
| Total comprehensive income for the period | – | – | 331 | 24 | -224 | 131 | |||
| Allocation of performance share plan | – | 1 | – | – | – | 1 | |||
| Closing balance, 30 Jun 2023 | 57 | 1,461 | 650 | 52 | 2,627 | 4,847 |
Number of Treasury shares: 2,040,637.
Key ratios, Group
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
|---|---|---|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Gross profit | 1,414 | 1,268 | 2,860 | 2,463 | 5,363 | 4,966 |
| Gross margin, % | 36.3 | 35.6 | 37.3 | 34.1 | 35.9 | 34.3 |
| EBITDA | 303 | 254 | 689 | 273 | 1,090 | 674 |
| EBITDA, % | 7.8 | 7.1 | 9.0 | 3.8 | 7.3 | 4.7 |
| Total depreciation | -199 | -196 | -403 | -395 | -804 | -796 |
| Total impairment | -42 | 3 | -42 | -34 | -95 | -87 |
| Operating profit | 62 | 61 | 244 | -156 | 191 | -209 |
| Excl. items affecting comparability | 212 | 83 | 394 | 164 | 497 | 267 |
| Operating margin, % | 1.6 | 1.7 | 3.2 | -2.2 | 1.3 | -1.4 |
| Excl. items affecting comparability | 5.4 | 2.3 | 5.1 | 2.3 | 3.3 | 1.8 |
| Return on operating capital, % | 2.4 | -2.5 | ||||
| Return on shareholders equity, % | 0,0 | -7.4 | ||||
| Operating cash flow | 286 | -276 | -134 | -315 | -746 | -927 |
| Earnings per share before dilution, SEK | 0.10 | 0.01 | 0.86 | -1.27 | -0.01 | -2.14 |
| Earnings per share after dilution, SEK | 0.10 | 0.01 | 0.86 | -1.27 | -0.01 | -2.14 |
| Number of shares at period end before dilution, thousands (1) | 168,253 | 168,253 | 168,253 | 168,253 | 168,253 | 168,253 |
| Average number of shares before dilution, thousands (1) | 168,253 | 168,253 | 168,253 | 168,253 | 168,253 | 168,253 |
| Number of shares after dilution at period end, thousands (1) | 168,370 | 168,253 | 168,492 | 168,253 | 168,471 | 168,293 |
| Average number of shares after dilution, thousands (1) | 168,293 | 168,253 | 168,293 | 168,253 | 168,380 | 168,293 |
| Equity/assets ratio, % | 39 | 34 | 37 | |||
| Debt/equity ratio, % | 54 | 95 | 84 | |||
| Net debt, closing balance, SEK m | 2,668 | 4,606 | 3,980 | |||
| Operating capital, closing balance, SEK m | 7,588 | 9,453 | 8,695 | |||
| Capital employed, closing balance, SEK m | 8,494 | 10,121 | 9,037 | |||
| Number of employees | 6,329 | 5,533 | 6,123 |
(1) Excluding treasury shares
*The consolidated income statement for first quarter 2023 has been adjusted, see Note 6 on page 15.
Consolidated cash-flow statement
| Q2 | Jan-Jun | Jan-Jun | Jan-Dec | 12 mos | ||
|---|---|---|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Operating activities | ||||||
| Operating profit | 62 | 61 | 244 | -156 | 191 | -209 |
| Depreciation/Impairment | 241 | 193 | 445 1 | 429 2 | 899 3 | 883 |
| Adjustments for non-cash items | 25 | 10 | 30 | 21 | 48 | 39 |
| Tax paid | -25 | -18 | -76 | -92 | -208 | -224 |
| Change in working capital | 391 | -180 | 9 | 198 | -11 | 178 |
| Cash flow from operating activities | 694 | 66 | 652 | 400 | 919 | 667 |
| Investing activities | ||||||
| Investments in intangible and tangible fixed assets | -408 | -356 | -795 | -724 | -1,684 | -1,613 |
| Other items in investing activities | 0 | 14 | 9 | 9 | 19 | 19 |
| Interest received | 1 | 0 | 1 | 1 | 4 | 4 |
| Change in interest-bearing assets | 0 | 0 | 0 | 1 | 0 | 1 |
| Acquisition of companies | 0 | 0 | -59 | 0 | -59 | 0 |
| Cash flow from investing activities | -407 | -342 | -844 | -713 | -1,720 | -1,589 |
| Total cashflow from operating and | ||||||
| investing activities | 287 | -276 | -192 | -313 | -801 | -922 |
| Financing activities | ||||||
| Interest paid | -15 | -49 | -38 | -100 | -125 | -187 |
| Change in interest-bearing liabilities | -320 | 255 | 1,109 4 | 725 5 | 1,204 6 | 820 |
| Dividend | -421 | – | -421 | – | -421 | – |
| Cash flow from financing activities | -756 | 206 | 650 | 625 | 658 | 633 |
| Cash flow for the period excluding exchange-rate differences in | ||||||
| cash and cash equivalents | -469 | -70 | 458 | 312 | -143 | -289 |
| Cash and cash equivalents at beginning of the period Cash flow for the period |
1,394 -469 |
715 -70 |
422 458 |
340 312 |
422 -143 |
905 -289 |
| Exchange-rate differences in cash and cash equivalents | -20 | 22 | 25 | 15 | 61 | 51 |
| Cash and cash equivalents at period-end | 905 | 667 | 905 | 667 | 340 | 667 |
| Operating Cash flow * | Q2 | Jan-Jun | Jan-Jun | Jan-dec | 12 mos | |
|---|---|---|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Cash flow from operating activities | 694 | 66 | 652 | 400 | 919 | 667 |
| Investments in fixed assets | -408 | -356 | -795 | -724 | -1,684 | -1,613 |
| Other items in investing activities | 0 | 14 | 9 | 9 | 19 | 19 |
| Operating cash flow before acquisition/divestment of operations, | ||||||
| interest, change in interest-bearing assets | 286 | -276 | -134 | -315 | -746 | -927 |
* Alternative Performance Measure, refer to "Definitions".
1) No impairments during the period.
2) Impairments during the period amounted to SEK 34m and pertained to other intangible assets SEK 15m and machinery and equipment SEK 19m.
3) Impairments during the period amounted to SEK 95m and pertained to other intangible assets SEK 92m and machinery SEK 3m.
4) Net of repayment and raising of loans amounted to SEK 1 400m. Amortisation of leasing amounted to SEK 258m.
5) Net of repayment and raising of loans amounted to SEK 1000m. Amortisation of leasing amounted to SEK 235m.
6) Net of repayment and raising of loans amounted to SEK 1 800m. Amortisation of leasing amounted to SEK 505m.
Analysis of net debt
| Q2 | Jan-Jun Jan-Jun | Jan-Dec | 12 mos | |||
|---|---|---|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Opening balance, net debt | 2,442 | 4,176 | 2,014 | 3,980 | 2,014 | 2,668 |
| New leasing contracts/Closed leasing contracts in advance, net | 11 | -11 | 66 | 74 | 353 | 361 |
| Acquisition of operations | – | – | 59 | – | 59 | – |
| Translation differences | 50 | 87 | 35 | 120 | 41 | 126 |
| Operating cash flow | -286 | 276 | 134 | 315 | 752 | 933 |
| Interest paid, net | 14 | 49 | 37 | 99 | 121 | 183 |
| Remeasurements of defined benefit pension plans | 5 | 26 | -113 | 10 | 187 | 310 |
| Other change in pension liabilities | 11 | 3 | 15 | 8 | 32 | 25 |
| Treasury shares reissued | – | – | – | – | – | – |
| Dividend | 421 | – | 421 | – | 421 | – |
| Closing balance, net debt | 2,668 | 4,606 | 2,668 | 4,606 | 3,980 | 4,606 |
Notes
Note 1 - Accounting policies
This interim report has been prepared in accordance with IFRS, with the application of IAS 34 Interim Financial Reporting. For the Parent Company, accounting policies are applied in accordance with Chapter 9, Interim Reports, of the Swedish Annual Accounts Act. Nobia has applied the same accounting policies in this interim report as were applied in the 2022 Annual Report. A description of new accounting policies in their entirety is provided in the 2022 Annual Report.
Note 2 - References
Segment information pages 4 and 5. Loan and shareholder's equity transactions, page 6. Items affecting comparability, page 15. Net sales by product group, page 16.
Note 3 - Financial instruments - fair value
Nobia's financial assets essentially comprise non-interest-bearing and interest-bearing receivables whereby cash flows only represent payment for the initial investment and, where applicable, for the time value and interest. These are intended to be held to maturity and are recognised at amortised cost, which is a reasonable approximation of fair value. Financial liabilities are primarily recognised at amortised cost.
Financial instruments measured at fair value in the balance sheet are currency forward contracts comprised of assets at a value of SEK 58m (37) and liabilities at a value of SEK -27m (2). These items are measured according to level 2 of the fair value hierarchy, meaning based on indirect observable market data. Nobia's financial instruments are measured at fair value and included in the balance sheet on the rows "Other receivables" and "Current liabilities".
Note 4 - Related-party transactions
There is no sale and manufacturing of kitchens in the Parent Company. The Parent Company invoiced Groupwide services to subsidiaries in an amount of SEK 121m (146) during the second quarter of 2023. The Parent Company's reported dividends from participations in Group companies totalled SEK 0m (0).
Note 5 – Goodwill
Goodwill is the difference between the acquisition value and the group's share of the fair value of an acquired subsidiary's identifiable assets and liabilities on the acquisition date. At the time of acquisition, goodwill is reported at acquisition value and after the first accounting event it is valued at acquisition value. At each closing date, the company makes an assessment if there is any indication that the value of goodwill is lower than the reported value. If there is such an indication, the company calculates the recovery value for goodwill and prepares an impairment test. As stated in the annual report for 2022, the cash generating unit (CGU) Region UK is sensitive to high interest rates or a market decline. Nobia notes that the effects of the cost saving program initiated in 2022 and the beginning of 2023 is running according to plan, and that the choice
to exit certain unprofitable project segment business has contributed positively. Consequently, this means that management assesses there is no need for goodwill write-downs. The assessment is updated continuously and in case of so-called "triggering events". It is not precluded that reasonable changes in key assumptions could lead to an impairment.
Note 6 – Correction
The consolidated income statement for first quarter 2023 has been adjusted to reflect an item that was incorrectly recorded. An amount of SEK -37m in the first quarter 2023 has been moved from selling and administrative expenses and other expenses to impairment. The correction had no impact on operating profit. The Q1 reported EBITDA of SEK -18m should have been SEK 19m.
Parent Company
| Parent Company income statement | Q2 | Jan-Jun Jan-Jun | Jan-Dec | 12 mos | ||
|---|---|---|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Net sales | 124 | 121 | 211 | 220 | 593 | 689 |
| Administrative expenses | -171 | -147 | -298 | -289 | -694 | -812 |
| Other operating income | 0 | 0 | 0 | -1 | 2 | 1 |
| Operating profit/loss | -47 | -26 | -87 | -70 | -99 | -122 |
| Financial items, net | 75 | 182 | 822 | 191 | 990 | 1,106 |
| Profit/loss after financial items | 28 | 156 | 735 | 121 | 891 | 984 |
| Group contribution received | 0 | 0 | 0 | 0 | -101 | -101 |
| Tax on profit/loss for the period | 0 | 0 | 0 | 0 | 41 | 41 |
| Profit/loss for the period | 28 | 156 | 735 | 121 | 831 | 924 |
| Parent Company balance sheet | 30 Jun | 30 Jun | 31 Dec |
|---|---|---|---|
| SEK m | 2022 | 2023 | 2022 |
| Total fixed assets | 1,647 | 1,822 | 1,760 |
| Total current assets | 4,612 | 4,485 | 4,494 |
| Total assets | 6,259 | 6,307 | 6,254 |
| Total shareholders' equity | 3,435 | 3,652 | 3,532 |
| Total long-term liabilities | 540 | 54 | 50 |
| Total current liabilities | 2,284 | 2,601 | 2,672 |
| Total shareholders' equity, provisions and liabilities | 6,259 | 6,307 | 6,254 |
Items affecting comparability
| Q2 | Jan-Jun Jan-Jun | Jan-Dec | 12 mos | |||
|---|---|---|---|---|---|---|
| Items affecting comparability per function, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Items affecting profitability in gross profit | -8 | 2 | -8 | -114 | -31 | -137 |
| Items affecting profitability in operating profit | -150 | -22 | -150 | -320 | -306 | -476 |
| Items affecting profitability in taxes | 31 | 4 | 31 | 66 | 63 | 98 |
| Items affecting profitability in profit after tax | -119 | -18 | -119 | -254 | -243 | -378 |
| Items affecting comparability | Q2 | Jan-Jun Jan-Jun | Jan-dec | 12 mos | ||
| in gross profit per region, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | -1 | 0 | -1 | -36 | -22 | -57 |
| UK | -2 | 2 | -2 | -58 | -4 | -60 |
| Portfolio Business Units | – | 0 | – | -20 | – | -20 |
| Group-wide and eliminations | -5 | 0 | -5 | 0 | -5 | 0 |
| Group | -8 | 2 | -8 | -114 | -31 | -137 |
| Items affecting comparability | Q2 | Jan-Jun Jan-Jun | Jan-dec | 12 mos | ||
| in operating profit per region, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | -6 | -19 | -6 | -109 | -91 | -194 |
| UK | -115 | -3 | -115 | -173 | -115 | -173 |
| Portfolio Business Units | – | -1 | – | -37 | – | -37 |
| Group-wide and eliminations | -29 | 1 | -29 | -1 | -100 | -72 |
| Group | -150 | -22 | -150 | -320 | -306 | -476 |
Comparative data per region
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
|---|---|---|---|---|---|---|
| Net sales, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 2,155 | 1,858 | 4,195 | 3,806 | 8,030 | 7,641 |
| UK | 1,286 | 1,148 | 2,565 | 2,375 | 5,001 | 4,811 |
| Portfolio Business Units | 450 | 556 | 910 | 1,041 | 1,899 | 2,030 |
| Group-wide and eliminations | -1 | 0 | -1 | 0 | -1 | 0 |
| Group | 3,890 3,562 | 7,669 7,222 | 14,929 | 14,482 | ||
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Gross profit, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| 590 | ||||||
| Nordic | 767 | 1,504 | 1,179 | 2,697 | 2,372 | |
| UK | 530 | 487 | 1,088 | 960 | 2,102 | 1,974 |
| Portfolio Business Units Group-wide and eliminations |
106 11 |
174 17 |
240 28 |
287 37 |
518 46 |
565 55 |
| Group | 1,414 1,268 | 2,860 2,463 | 5,363 | 4,966 | ||
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Gross profit excl. IAC, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 768 | 590 | 1,505 | 1,215 | 2,719 | 2,429 |
| UK | 532 | 485 | 1,090 | 1,018 | 2,106 | 2,034 |
| Central Europe | 106 | 174 | 240 | 307 | 518 | 585 |
| Group-wide and eliminations | 16 | 17 | 33 | 37 | 51 | 55 |
| Group | 1,422 1,266 | 2,868 2,577 | 5,394 | 5,103 | ||
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Gross margin, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 35.6 | 31.8 | 35.9 | 31.0 | 33.6 | 31.0 |
| UK | 41.2 | 42.4 | 42.4 | 40.4 | 42.0 | 41.0 |
| Portfolio Business Units | 23.6 | 31.3 | 26.4 | 27.6 | 27.3 | 27.8 |
| Group | 36.3 | 35.6 | 37.3 | 34.1 | 35.9 | 34.3 |
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Gross margin excl. IAC, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 35.6 | 31.8 | 35.9 | 31.9 | 33.9 | 31.8 |
| UK Central Europe |
41.4 23.6 |
42.2 31.3 |
42.5 26.4 |
42.9 29.5 |
42.1 27.3 |
42.3 28.8 |
| Group | 36.6 | 35.5 | 37.4 | 35.7 | 36.1 | 35.2 |
| Jan-Dec | ||||||
| Q2 | Jan-Jun | 12 mos | ||||
| Operating profit, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 242 | 83 | 455 | 98 | 595 | 238 |
| UK | -101 | –14 | –101 | -179 | –184 | -262 |
| Portfolio Business Units | 9 | 35 | 29 | 11 | 76 | 58 |
| Group-wide and eliminations | -88 | -43 | -139 | -86 | -296 | -243 |
| Group | 62 | 61 | 244 | -156 | 191 | -209 |
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Operating profit excl IAC, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 248 | 102 | 461 | 207 | 686 | 432 |
| UK | 14 | –11 | 14 | –6 | -69 | -89 |
| Portfolio Business Units | 9 | 36 | 29 | 48 | 76 | 95 |
| Group-wide and eliminations | -59 | -44 | -110 | -85 | -196 | -171 |
| Group | 212 | 83 | 394 | 164 | 497 | 267 |
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Operating margin, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 11.2 | 4.5 | 10.8 | 2.6 | 7.4 | 3.1 |
| UK | -7.9 | -1.2 | -3.9 | -7.5 | -3.7 | -5.4 |
| Portfolio Business Units | 2.0 | 6.3 | 3.2 | 1.1 | 4.0 | 2.9 |
| Group | 1.6 | 1.7 | 3.2 | -2.2 | 1.3 | -1.4 |
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Operating margin excl IAC, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Nordic | 11.5 | 5.5 | 11.0 | 5.4 | 8.5 | 5.7 |
| UK | ||||||
| 1.1 | -1.0 | 0.5 | -0.3 | -1.4 | -1.8 | |
| Portfolio Business Units Group |
2.0 5.4 |
6.5 2.3 |
3.2 5.1 |
4.6 2.3 |
4.0 3.3 |
4.7 1.8 |
Quarterly data per region
| 2022 | 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Net sales, SEK m | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 2,040 | 2,155 | 1,778 | 2,057 | 1,948 | 1,858 | ||
| UK | 1,279 | 1,286 | 1,240 | 1,196 | 1,227 | 1,148 | ||
| Portfolio Business Units | 460 | 450 | 462 | 527 | 485 | 556 | ||
| Group-wide and eliminations | 0 | -1 | 0 | 0 | 0 | 0 | ||
| Group | 3,779 | 3,890 3,480 3,780 | 3,660 3,562 | |||||
| 2022 | 2023 | |||||||
| Gross profit, SEK m | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 737 | 767 | 561 | 632 | 589 | 590 | ||
| UK | 558 | 530 | 533 | 481 | 473 | 487 | ||
| Portfolio Business Units | 134 | 106 | 130 | 148 | 113 | 174 | ||
| Group-wide and eliminations | 17 | 11 | 18 | 0 | 20 | 17 | ||
| Group | 1,446 | 1,414 1,242 1,261 | 1,195 1,268 | |||||
| 2022 | 2023 | |||||||
| Gross profit excl IAC, SEK m | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 737 | 768 | 562 | 652 | 625 | 590 | ||
| UK | 558 | 532 | 535 | 481 | 533 | 485 | ||
| Central Europe | 134 | 106 | 130 | 148 | 133 | 174 | ||
| Group-wide and eliminations | 17 | 16 | 18 | 0 | 20 | 17 | ||
| Group | 1,446 | 1,422 1,245 1,281 | 1,311 1,266 | |||||
| 2022 | 2023 | |||||||
| Gross margin, % | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 36.1 | 35.6 | 31.6 | 30.7 | 30.2 | 31.8 | ||
| UK | 43.6 | 41.2 | 43.0 | 40.2 | 38.5 | 42.4 | ||
| Portfolio Business Units | 29.1 | 23.6 | 28.1 | 28.1 | 23.3 | 31.3 | ||
| Group | 38.3 | 36.3 | 35.7 | 33.4 | 32.7 | 35.6 | ||
| 2022 | 2023 | |||||||
| Gross margin excl IAC, % | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 36.1 | 35.6 | 31.6 | 31.7 | 32.1 | 31.8 | ||
| UK | 43.6 | 41.4 | 43.1 | 40.2 | 43.4 | 42.2 | ||
| Central Europe | 29.1 | 23.6 | 28.1 | 28.1 | 27.4 | 31.3 | ||
| Group | 38.3 | 36.6 | 35.8 | 33.9 | 35.8 | 35.5 | ||
| 2022 | 2023 | |||||||
| Operating profit, SEK m | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 213 | 242 | 97 | 43 | 15 | 83 | ||
| UK | 0 | -101 | -11 | -72 | -165 | -14 | ||
| Portfolio Business Units | 20 | 9 | 20 | 27 | -24 | 35 | ||
| Group-wide and eliminations | -51 | -88 | -28 | -129 | -43 | -43 | ||
| Group | 182 | 62 | 78 | -131 | -217 | 61 | ||
| 2022 | 2023 | |||||||
| Operating profit excl IAC, SEK m | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 213 | 248 | 97 | 128 | 105 | 102 | ||
| UK | 0 | 14 | -11 | -72 | 5 | -11 | ||
| Portfolio Business Units | 20 | 9 | 20 | 27 | 12 | 36 | ||
| Group-wide and eliminations | -51 | -59 | -28 | -58 | -41 | -44 | ||
| Group | 182 | 212 | 78 | 25 | 81 | 83 | ||
| 2022 | 2023 | |||||||
| Operating margin, % | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 10.4 | 11.2 | 5.5 | 2.1 | 0.8 | 4.5 | ||
| UK | 0.0 | -7.9 | -0.9 | -6.0 | -13.4 | -1.2 | ||
| Portfolio Business Units | 4.3 | 2.0 | 4.3 | 5.1 | -4.9 | 6.3 | ||
| Group | 4.8 | 1.6 | 2.2 | -3.5 | -5.9 | 1.7 | ||
| 2022 | 2023 | |||||||
| Operating margin excl IAC, % | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
| Nordic | 10.4 | 11.5 | 5.5 | 6.2 | 5.4 | 5.5 | ||
| UK | 0.0 | 1.1 | -0.9 | -6.0 | 0.4 | -1.0 | ||
| Portfolio Business Units | 4.3 | 2.0 | 4.3 | 5.1 | 2.5 | 6.5 | ||
| Group | 4.8 | 5.4 | 2.2 | 0.7 | 2.2 | 2.3 |
Operating capital per region
| 30 Jun | 31 Dec | |||
|---|---|---|---|---|
| Operating capital Nordic region, SEK m | 2022 | 2023 | 2022 | |
| Operating assets | 3,468 | 5,621 | 3,463 | |
| Operating liabilities | 2,002 | 2,389 | 2,051 | |
| Operating capital | 1,466 | 3,232 | 1,412 | |
| 30 Jun | 31 Dec | |||
| Operating capital UK region, SEK m | 2022 | 2023 | 2022 | |
| Operating assets | 3,329 | 3,864 | 3,559 | |
| Operating liabilities | 1,316 | 1,263 | 995 | |
| Operating capital | 2,013 | 2,601 | 2,564 | |
| 30 Jun | 31 Dec | |||
| Operating capital Portfolio Business Units, SEK m | 2022 | 2023 | 2022 | |
| Operating assets | 984 | 1,062 | 967 | |
| Operating liabilities | 336 | 357 | 324 | |
| Operating capital | 648 | 705 | 643 | |
| 30 Jun | 31 Dec | |||
| Operating capital Group-wide and eliminations, SEK m | 2022 | 2023 | 2022 | |
| Operating assets | 3,817 | 3,060 | 4,441 | |
| Operating liabilities | 356 | 145 | 365 | |
| Operating capital | 3,461 | 2,915 | 4,076 | |
| 30 Jun | ||||
| Operating capital, SEK m | 2022 | 2023 | 31 Dec 2022 |
|
| Operating assets | 11,598 | 13,606 | 12,430 | |
| Operating liabilities | 4,010 | 4,153 | 3,735 | |
| Operating capital | 7,588 | 9,453 | 8,695 |
Comparative data by product group
| Net sales | Q2 Jan-Jun |
Jan-dec | 12 mos | |||
|---|---|---|---|---|---|---|
| Nordic by product group, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Kitchen furnitures | 71 | 75 | 72 | 75 | 71 | 74 |
| Installation services | 5 | 5 | 4 | 4 | 5 | 5 |
| Other products | 24 | 20 | 24 | 21 | 24 | 21 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
| Net sales | Q2 | Jan-Jun | Jan-dec | 12 mos | ||
| UK by product group, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Kitchen furnitures | 64 | 67 | 65 | 67 | 65 | 67 |
| Installation services | 4 | 4 | 4 | 3 | 4 | 3 |
| Other products | 32 | 29 | 31 | 30 | 31 | 30 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
| Net sales | Q2 | Jan-Jun | Jan-dec | 12 mos | ||
| Portfolio Business Units by product group, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Kitchen furnitures | 63 | 57 | 62 | 58 | 61 | 57 |
| Installation services | 8 | 10 | 8 | 10 | 9 | 11 |
| Other products | 29 | 33 | 30 | 32 | 30 | 32 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
| Net sales | Q2 | Jan-Jun | Jan-dec | 12 mos | ||
| Group by product group, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Kitchen furnitures | 68 | 69 | 68 | 70 | 68 | 70 |
| Installation services | 5 | 5 | 5 | 5 | 5 | 5 |
| Other products | 27 | 26 | 27 | 25 | 27 | 25 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
Reconciliation of alternative performance measures (1)
Nobia presents certain financial performance measures in the interim report that are not defined according to IFRS, known as alternative performance measures. Nobia believes that these measures provide valuable complementary information to investors and the company's management since they facilitate assessments of trends and the company's performance. Because not all companies calculate performance measures in the same way, these are not always comparable with those measures used by other companies. Consequently, the performance measures are not to be seen as replacements for measures defined according to IFRS. For definitions of the performance measures that Nobia uses, see pages 19-20.
| Q2 | Jan-Jun | ||||
|---|---|---|---|---|---|
| Analysis of external net sales Nordic Region | % | SEK m | % | SEK m | |
| 2022 | 2,155 | 4,195 | |||
| Organic growth | -17 | -382 | -12 | -536 | |
| Currency effects | 3 | 85 | 3 | 147 | |
| 2023 | -14 | 1,858 | -9 | 3,806 | |
| Q2 | Jan-Jun | ||||
| Analysis of external net sales UK Region | % | SEK m | % | SEK m | |
| 2022 | 1,285 | 2,564 | |||
| Organic growth | -16 | -220 | -11 | -286 | |
| Currency effects | 5 | 83 | 3 | 97 | |
| 2023 | -11 | 1,148 | -7 | 2,375 | |
| Q2 | Jan-Jun | ||||
| Analysis of external net sales Portfolio Business Units | % | SEK m | % | SEK m | |
| 2022 | 450 | 910 | |||
| Organic growth | 14 | 67 | 7 | 66 | |
| Currency effects | 10 | 39 | 7 | 65 | |
| 2023 | 23 | 556 | 14 | 1,041 |
| Q2 | Jan-Jun | 12 mos | ||||
|---|---|---|---|---|---|---|
| EBITDA, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Operating profit | 62 | 61 | 244 | -156 | 191 | -209 |
| Depreciation and impairment | 241 | 193 | 445 | 429 | 899 | 883 |
| EBITDA | 303 | 254 | 689 | 273 | 1,090 | 674 |
| Net Sales | 3,890 | 3,562 | 7,669 | 7,222 | 14,929 | 14,482 |
| % of sales | 7.8 | 7.1 | 9.0 | 3.8 | 7.3 | 4.7 |
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| EBITDA excl. IFRS16 and items affecting comparability* | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| EBITDA | 303 | 254 | 689 | 273 | 1,090 | 674 |
| IFRS 16 leasing | -126 | -137 | -255 | -274 | -522 | -541 |
| EBITDA impact, items affecting comparability | 107 | 25 | 107 | 285 | 210 | 388 |
| EBITDA excl. IFRS16 and items affecting comparability | 284 | 142 | 541 | 284 | 778 | 521 |
| *Used for calculation of leverage on page 7. | ||||||
| Jan-Jun Jan-Jun | Jan-Dec | 12 mos | ||||
| Average equity, SEK m | 2022 | 2023 | 2022 | rolling | ||
| OB Equity attributable to Parent Company shareholders | 4,923 | 4,819 | 4,923 | 4,922 |
| CB Equity attributable to Parent Company shareholders | 4,920 | 4,847 | 4,715 | 4,833 |
|---|---|---|---|---|
| Average equity | 4,922 | 4,833 | 4,819 | 4,878 |
Reconciliation of alternative performance measures (2)
| 30 Jun | 30 Jun | 31 Dec | |
|---|---|---|---|
| Net debt, SEK m | 2022 | 2023 | 2022 |
| Provisions for pensions (IB) | 95 | 383 | 384 |
| Other long-term liabilities, interest-bearing (IB) | 3,154 | 4,552 | 3,599 |
| Current liabilities, interest-bearing (IB) | 325 | 339 | 339 |
| Interest-bearing liabilities | 3,574 | 5,274 | 4,322 |
| Long-term receivables, interest -bearing (IB) | 0 | 0 | 0 |
| Current receivables, interest-bearing (IB) | 1 | 1 | 2 |
| Cash and cash equivalents (IB) | 905 | 667 | 340 |
| Interest-bearing assets | 906 | 668 | 342 |
| Net debt | 2,668 | 4,606 | 3,980 |
| Net debt excl. IFRS 16 Leases and provision for pensions | 894 | 2,505 | 1,839 |
|---|---|---|---|
| Net debt excl. IFRS 16 Leases | 989 | 2,888 | 2,223 |
| Of which provisions for pensions | 95 | 383 | 384 |
| Of which IFRS 16 Leases | 1,679 | 1,718 | 1,757 |
| Net debt | 2,668 | 4,606 | 3,980 |
| Net debt excl. IFRS 16 Leases and pension provisions, SEK m | 2022 | 2023 | 2022 |
| 30 Jun | 30 Jun | 31 Dec |
| 30 Jun | 30 Jun | 31 Dec | |
|---|---|---|---|
| Operating capital, SEK m | 2022 | 2023 | 2022 |
| Total assets | 12,504 | 14,274 | 12,772 |
| Other provisions | -27 | -8 | -40 |
| Deferred tax liabilities | -81 | -72 | -60 |
| Other long-term liabilities, non interest-bearing | -8 | -4 | -4 |
| Current liabilities, non interest-bearing | -3,894 | -4,069 | -3,631 |
| Non-interest-bearing liabilities | -4,010 | -4,153 | -3,735 |
| Capital employed | 8,494 | 10,121 | 9,037 |
| Interest-bearing assets | -906 | -668 | -342 |
| Operating capital | 7,588 | 9,453 | 8,695 |
| Jan-Dec | 12 mos | |
|---|---|---|
| Average operating capital, SEK m | 2022 | rolling |
| OB Operating capital | 6,937 | 7,588 |
| CB Operating capital | 8,695 | 9,453 |
| Average operating capital | 7,816 | 8,521 |
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
|---|---|---|---|---|---|---|
| Operating profit excl. items affecting comparability, SEK m | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Operating profit | 62 | 61 | 244 | -156 | 191 | -209 |
| Items affecting comparability | -150 | -22 | -150 | -320 | -306 | -476 |
| Operating profit excl. IAC, SEK m | 212 | 83 | 394 | 164 | 497 | 267 |
| Q2 | Jan-Jun | Jan-Dec | 12 mos | |||
| Operating margin excl. items affecting comparability, % | 2022 | 2023 | 2022 | 2023 | 2022 | rolling |
| Operating margin | 1.6 | 1.7 | 3.2 | -2.2 | 1.3 | -1.4 |
| Margin impact when items affecting comparability excluded | 3.8 | 0.6 | 1.9 | 4.5 | 2.0 | 3.2 |
Definitions
| Performance measure | Calculation | Purpose |
|---|---|---|
| Return on shareholders' equity | Net profit for the period as a percentage of average shareholders' equity attributable to Parent Company shareholders based on opening and closing balances for the period. The calculation of average shareholders' equity has been adjusted for increases and decreases in capital. |
Return on shareholders' equity shows the total return on shareholders' capital in accounting terms and reflects the effects of both the operational profitability and financial gearing. The measure is primarily used to analyse shareholder profitability over time. |
| Return on operating capital | Operating profit as a percentage of average operating capital based on opening and closing balances for the period excl. net assets attributable to discontinued operations. The calculation of average operating capital has been adjusted for acquisitions and divestments. |
Return on operating capital shows how well the operations use net capital that is tied up in the company. It reflects how both cost and capital efficient net sales are generated, meaning the combined effect of the operating margin and the turnover rate of operating capital. The measure is used in profitability comparisons between operations in the Group and to assess the Group's profitability over time. |
| Gross margin | Gross profit as a percentage of sales. | This measure reflects the efficiency of the part of the operations that is primarily linked to production and logistics. It is used to measure cost efficiency in this part of the operations. |
| EBITDA | Earnings before depreciation/amortisation and impairment. |
To simplify, the measure shows the earnings generating cash flow in the operations. It provides a view of the ability of the operations, in absolute terms, to generate resources for investment and payment to financers and is used for comparisons over time. |
| EBITDA-margin | Earnings before depreciation/ amortisation and impairment in relation to net sales, % |
|
| Items affecting comparability | Items that affect comparability in so far as they do not reoccur with the same regularity as other items. |
Reporting items affecting comparability separately clearly shows the performance of the underlying operations. |
| Net debt | Interest-bearing liabilities less interest-bearing assets. Interest bearing liabilities include provisions for pensions and leases. |
Net debt is a liquidity metric used to determine how well a company can pay all of its debts, pension liabilities and leasing obligations if they were due immediately. The measure is used as a component in the debt/equity ratio. |
| Operating capital | Capital employed excl. interest bearing assets. |
Operating capital shows the amount of capital required by the operations to conduct its core operations. It is mainly used to calculate the return on operating capital. |
| Operating cash flow | Cash flow from operating activities including cash flow from investing activities, excl. cash flow from acquisitions/divestments of operations, interest received, and |
This measure comprises the cash flow generated by the underlying operations. The measure is used to show the amount of funds at the company's disposal for paying financers of loans and equity or for use in growth through acquisitions. |
| Performance measure | Calculation | Purpose |
|---|---|---|
| increase/decrease in interest-bearing assets. |
||
| Organic growth | Change in net sales, excl. acquisitions, divestments and changes in exchange rates. |
Organic growth facilitates a comparison of sales over time by comparing the same operations and excl. currency effects. |
| Region | Region corresponds to an operating segment under IFRS 8. |
|
| Earnings per share | Net profit for the period divided by a weighted average number of outstanding shares during the period. |
|
| Operating margin | Operating profit as a percentage of net sales. |
This measure reflects the operating profitability of the operations. It is used to monitor the flexibility and efficiency of the operations before taking into account capital tied up. The performance measure is used both internally in governance and monitoring of the operation, and for benchmarking with other companies in the industry. |
| Debt/equity ratio | Net debt as a percentage of shareholders' equity including non controlling interests. |
A measure of the ratio between the Group's two forms of financing. The measure shows the percentage of the loan capital in relation to capital invested by the owners, and is thus a measure of financial strength but also the gearing effect of lending. A higher debt/equity ratio means a higher financial risk and higher financial gearing. |
| Equity/assets | Shareholders' equity including non controlling interests as a percentage of balance-sheet total. |
This measure reflects the financial position and thus the long-term solvency. A healthy equity ratio/strong financial position provides preparedness for managing periods of economic downturn and financial preparedness for growth. It also provides a minor advantage in the form of financial gearing. |
| Capital employed | Balance-sheet total less non interest-bearing provisions and liabilities. |
The capital that shareholders and lenders have placed at the company's disposal. It shows the net capital invested in the operations, such as operating capital, with additions for financial assets. |
| Currency effects | "Translation effects" refers to the currency effects arising when foreign results and balance sheets are translated to SEK. "Transaction effects" refers to the currency effects arising when purchases or sales are made in currency other than the currency of the producing country (functional currency). |
For further information
Contact any of the following on +46 (0)8 440 16 00 or [email protected]
- Henrik Skogsfors, CFO
- Tobias Norrby, Head of Investor Relations
Presentation
The interim report will be presented on Thursday, July 20 at 14:00 CET in a webcast teleconference that can be followed on https://edge.media-server.com/mmc/p/fcaoq7xt
To participate by telephone and have the possibility to ask questions
Register in advance of the conference using the link below. Upon registering, each participant will be provided with Participant Dial In Numbers, and a unique Personal PIN:
https://register.vevent.com/register/BIc320a340d9ef47c692c007b918431666
In the 10 minutes prior to the call start time, use the Participant Dial In Numbers and your unique Personal PIN provided in the e-mail received at the point of registering.
Financial calendar
November 2, Interim report January - September 2023.
This interim report is information such that Nobia is obliged to make public pursuant to the EU's Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 20 July, 2023 at 13:00 CET.
Nobia AB • Blekholmstorget 30 E7 • SE-111 64 Stockholm • Tel +46 8 440 16 00 www.nobia.com. Corporate Registration Number: 556528–2752 • Board domicile: Stockholm, Sweden