Nobia: Continued favourable organic growth

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Nobia Q3 2007


Sales for kitchen company Nobia rose by 6 per cent during the third
quarter to SEK 3,861 million (3,631). Organic growth amounted to 6
per cent. Profit after tax amounted to SEK 189 million (189).
Earnings per share rose by 2 per cent to SEK 1.09 (1.07) after
dilution. Operating profit was SEK 272 million (280) and the
operating margin was 7.0 per cent (7.7).

Demand for kitchens remained stable in all of Nobia's principal
markets, except for Germany and the Netherlands, where demand
declined. Continued elevated prices for raw materials resulted in
upward pressure on purchasing costs, which consequently had a
negative impact on the operating margin.
Effective from the second quarter, Plana is included in 50 per
cent-owned Culinoma's accounts and Marquardt is included from 1
September. After the end of the interim period, Culinoma signed an
agreement for an additional acquisition in Germany, namely the Asmo
Group.
At the end of the third quarter, Nobia excluding Culinoma had a total
of 661 stores (Group-owned and franchise) meaning that a total of 14
new stores have been opened since the beginning of the year.

Comments from the CEO:"The development in the UK region is satisfactory with increased
sales and a strengthened operating margin, and in the Continental
Europe region we are continuing to strengthen the retailer stage,
most recently with the acquisition of Asmo in Germany. At the same
time, we can state that the realignment in the Nordic region has cost
more than expected, with one of the consequences being shortcomings
in delivery capacity. However, if we look at the end of the period,
we can see that the measures we have taken have started to generate
effects," says President and CEO Fredrik Cappelen.