Strong first half for Nobia

Swedish kitchen specialist Nobia reported good growth in all regions in its interim financial report for the first half of 2016.

Net sales for the first six months of 2016 amounted to SKr6.99 billion, up 2% from last year’s figure of SKr6.82bn. It also reported a figure of 3% for organic growth during that period.

Profit after tax amounted to SKr473 million, compared with SKr442m for the same period in 2015.

The company also pointed to a strong second quarter, with profits after tax up to SKr414m compared with SKr400m for Q2 in 2015.

Operating profit amounted to SKr649m, corresponding to an operating margin of 9.3 per cent. This improved primarily as a result of higher sales values, lower material prices and the acquisition of Commodore and CIE. However, the operating profit was impacted by currency losses of about SKr80 million.

In the UK, Q2 turned in net sales of SKr1.63bn against SKr1.57bn last year, with operating profits of SKr175m against SKr156m in the same period last year.

President and chief executive of Nobia, Morten Falkenberg, said: “All regions report sales growth for the second quarter and profitability strengthened in the Nordic and UK regions.

“The operating margin for the past 12 months amounted to 9.5%. We are focusing intensively on achieving our target of a 10% operating margin in 2016.

“The uncertainty has however increased due to the result of the referendum in the UK. We are monitoring the development very closely and are ready to take steps to strengthen profitability should this be necessary.”

Nobia announced in May 2016 its intention to enter into a strategic partnership for the development, production and sale of kitchens from the Poggenpohl brand, and to offer a potential partner the opportunity to acquire a minority share in Poggenpohl.

In November 2015, Nobia announced the acquisition of Commodore and CIE, two companies active in the private developer market in the UK. The purchase price consisted of £28m on a cash and debt-free basis.

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