Swedish kitchen manufacturer Nobia, which also owns Magnet, has reported a massive fall in its end-of-year results, with operating profit down by more than 150%.
In 2022, Nobia ended the year with operating profit of SKr 191 million (£14.6m). However, in its newly released 2023 figures, this plummeted to a loss of SKr 99 million.
Looking at its Q4 turnover, Nobia experienced a decline of almost 20%, at SKr 3.05 billion. This was a considerably less than 2022’s Q4 figure of SKr 3.78 billion. For the full year from January to December, sales were down 10% from SKr 14.93bn in 2022 to SKr 13.73bn.
Nobia said that the full-year figures included items that affected comparability, such as the SKr 100m write-down of the book value of its Jönköping factory and restructuring costs in Denmark and Finland of SKr 25m. Over the group, these totalled around SKr317m.
Nobia’s current president and chief executive Jon Sintorn commented: “Market conditions remain challenging and sales declined in the quarter, with even more pronounced decline in volumes. But, there are some positive signs and the decrease in order intake seems to start flattening out.
“We expect some stabilisation in 2024 and the market to start recovering in 2025, led by the consumer segment. However, considering the lag between order and delivery, the coming quarters will continue to be challenging.”
Sintorn also announced he will be leaving the company, effective June 2024. According to Nobia’s board of directors, they plan to announce his successor in the near future.