Nobia saw an increase in sales in the second quarter of 2017, but saw profits dip due to currency losses.
According to the Swedish kitchen giant, which owns brands including Magnet, Gower and Rixonway Kitchens, sales increased by 1% to SKr3.4 billion (£316 million), positively impacted by increased sales values.
However, sales were negatively impacted by fewer delivery days compared with the preceding year.
Demand for kitchens in the UK weakened as a result of heightened microeconomic uncertainty.
This was offset by the Nordic region and Central Europe, which is deemed to have seen improved demand for kitchens year-on-year.
Currency losses of SKr12 million also impacted sales, compared with SKr176m in the same period last year.
The gross margin amounted to 39.9%, down slightly from 40.1% in Q2 2016, adversely affected by currency fluctuations and a changed sales mix. These were slightly offset by higher sales values.
Operating profit also declined from SKr420m to SKr413m due to lower volumes and currency losses.
Operating cash flow declined from SKr238m to SKr193m as a result of a negative change in working capital and higher investments, compared with the corresponding quarter in 2016.
Profit after tax increased from SKr302m to SKr314m. Currency losses had an impact of SKr35m on the group’s operating profit, which was all attributed to transaction effects.
“Given the conditions with fewer delivery days than last year, I am pleased with the results for the second quarter,” said president and chief executive Morten Falkenberg (pictured). “Organic growth in the Nordic region was primarily driven by a strong increase in new housing construction in all Nordic countries. Our project sales in the UK also increased, while sales to consumers declined slightly. Although the operating profit was burdened by currency losses, our profit generation in the first half is ahead of last year’s. We are now working intensively towards our target of growing organically and via acquisitions. Overall, I remain confident in our ambition to deliver profitable growth.”