Slides
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Q1 2025 Results Presentation Kristoffer Ljungfelt, CEO Henrik Skogsfors, CFO
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Nobia Group, highlights Q1 2 2024 Q1 2025 Q1 Net sales (SEKm) 2,615 2,474 Organic growth (%) -20 -6 Gross margin (%) 37.3 38.6 SG&A (SEKm excl. freight) -849 -787 EBIT (SEKm) -27 16 EBIT-margin (%) -1.0 0.6 Operating cash flow -574 -85 Comments and numbers relate to continuing operations, unless otherwise stated * Table shows “adjusted”, i.e. excl. items affecting comparability • Important financial improvements in the quarter − Strengthened Cash flow − Gross margin improvement for the 5th consecutive quarter − Cost savings above expectations − Nordic profitability increase • Recovery continues in the consumer market while the project market remains soft • Group net sales decline due to a soft project market − Nordics and UK sales growth to consumer − UK sales -12% (-3% on a like-for-like store basis) • Operating income improvements • No direct impact on changes in trade policies
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Kitchen market development, Nordic region Consumer market • Consumer market recovering • Slight recovery in housing transactions • Government grants support home renovations • Continued increase in footfall and kitchen design meetings Project market • Housing starts still on low levels • Slight recovery in Denmark 3 0 2 4 6 8 10 12 14 16 18 20 2021-Q1 2021-Q2 2021-Q3 2021-Q4 2022-Q1 2022-Q2 2022-Q3 2022-Q4 2023-Q1 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 Housing starts per quarter (thousands) Sweden Norway Finland Denmark
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Consumer market • Consumer confidence remains low and on par with a year ago • House price index up • Residential house transactions rising Project segment • Housing starts remain well below long-term average • Significant housing undersupply; government-backed initiatives announced to drive housing starts Kitchen market development, UK 4 0 10 20 30 40 50 60 70 80 2021-Q1 2021-Q2 2021-Q3 2021-Q4 2022-Q1 2022-Q2 2022-Q3 2022-Q4 2023-Q1 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 Housing starts per quarter (thousands) UK
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5 Strategic updates Maximising cost efficiency and reduction of net debt • New Group organisation; decentralisation and local accountability will enable further cost saving measures • Run rate cost improvements of prior launched programs exceeds SEK 550m • SEK 200m run rate saving materializing from cost program launched in Q2 and Q3. Target total run rate savings of SEK 300m by Q3 2025 Realise full Nordic potential • Considerably strengthen Nordic supply chain - Finalize the Jönköping factory - Transfer production from Tidaholm to Jönköping - Transfer production in Finland to Denmark • Harmonized product platform for improved product range (design, sustainability and cost) • Harmonized processes and systems Transform UK • Continue transition to an asset light operating model - Closing underperforming stores. - Add sales through partnerships - Consolidate supply chain • Drive average order values through better products in higher price points • Fixed cost reductions, organizational simplification and decentralization 5
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• Kitchen components, assembled and flat-pack cabinets being distributed from Jönköping to the Nordic supply chain • Industrialization of frontal manufacturing, kitchen assembly and order consolidation starting in April • Gradual ramp up of shipments of complete kitchens to external customers starting in May • Investments remaining in 2025; SEK ~200m capex and ~350m cash outflow • Transfer of Tidaholm volumes to Jönköping completed during 2025 Ramp-up of new Nordic factory 6
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Nordic region Q1 • Organic net sales in line with prior year (-25% Q1-24) • Consumer sales up, while project segment continues to decline • Gross margin improvement driven by higher average order values, mix and supply chain efficiency • SG&A decrease driven by cost reductions • Substantial EBIT and EBIT-margin improvement • Market share gains for several brands, especially strong development Denmark 7 SEKm 2024 Q1 2025 Q1 Net sales 1,464 1,446 Organic growth (%) -25 0 Gross margin (%) 33.9 36.6 SG&A (SEKm excl. freight) -374 -319 EBIT (SEK m) 23 109 EBIT-margin (%) 1.6 7.5 Denmark 51%Sweden 23% Norway 19% Finland 7% Share of R12 sales by country Retail 38% Trade 15% Project 47% Share of R12 sales by segment * Table shows “adjusted”, i.e. excl. items affecting comparability
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Region UK Q1 2024 Q1 2025 Q1 Net sales (SEKm) 1,151 1,028 Organic growth (%) -14 -12 Gross margin (%) 40.9 41.3 SG&A (SEKm, excl. freight) -429 -425 EBIT (SEKm) -11 -53 EBIT-margin (%) -1.0 -5.2 • Organic sales decreased -12% (-14%) – Project market decline • Adjusted for store closures, the sales decline was -3% • Gross margin improved; favourable mix and higher average order values offset by continued volume under-absorption • Cost reductions materializing, however temporarily increased spending on online lead generation during the important winter sales period • Transition to asset-light operating model continues 8 Retail 44% Trade 22% Project 16% Other 18% Share of R12 sales by segment * Table shows “adjusted”, i.e. excl. items affecting comparability Stores 66% DIY 19% Project 15% Share of R12 sales by channel
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Financial position 9 Cash flow 2024 Q1 2025 Q1 Cash flow from operating activities -258 28 Operating cash flow -574 -85 Of w. operating profit* -44 -6 Of w. change in working capital -403 -116 Of w. investments in fixed assets -324 -139 Net debt 31 Mar, 2024 31 Mar, 2025 Borrowings 3,138 2,617 Interest bearing assets 304 155 Financial Net Debt** 2,834 2,462 Financial Net Debt / Equity, % 69 61 IFRS 16 leasing liabilities 2,441 2,231 Net pension debt 324 125 Net debt 5,599 4,818 Net debt/Equity, % 134 119 • Cash flow improvement driven by working capital and lower investments in fixed assets • Investments in Jönköping factory SEK 100m (241) • Financial net debt** decreased to SEK 2,463m (2,8834) • (Approx. 100m from the sale & leaseback transaction in 2024 remains to be paid to Nobia) *Incl. Items affecting comparability **Net debt excl. IFRS16 leasing and pension debt
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Priorities going forward 10 • Advance on our strategic agenda - Ramp-up Jönköping factory - Turnaround of the UK operations - Deliver on our cost out programs • Leverage on our strong brands and new organisation - Capture growth in consumer sales - Increase average order values - Productivity enhancing activities - Disciplined cost control - Strict working capital governance