Interim report January-June 2015

April-June 2015
• Net sales for the second quarter amounted to SEK 3,575 million (3,007),
positively affected by currency gains, organic growth and the acquisition of
Rixonway Kitchens.
• Organic growth was 7 per cent (neg: 1).
• Operating profit amounted to SEK 400 million (293), corresponding to an
operating margin of 11.2 per cent (9.7).
• Currency gains of approximately SEK 35 million (loss: 10) had a positive
effect on the Group’s operating profit, of which SEK 25 million (15) comprised
translation effects and SEK 10 million (neg: 25) transaction effects.
• Profit after tax amounted to SEK 289 million (192), corresponding to earnings
per share of SEK 1.72 (1.14).
• Operating cash flow amounted to SEK 170 million (175).
Consolidated net sales, earnings and cash flow
Overall market performance is deemed to have improved compared with the second
quarter of the preceding year. The Nordic market strengthened and the UK market
is continuing to grow, while Nobia’s main markets in Central Europe weakened.
Sales increased organically 7 per cent (neg: 1). Currency gains of SEK 247
million (151) affected sales for the quarter. Rixonway Kitchens, which was
acquired in the fourth quarter of 2014, reported sales of SEK 104 million for
the second quarter of 2015.
The gross margin amounted to 41.1 per cent (41.0), positively impacted by the
favourable currency gains and higher sales values, and negatively impacted by
the fact that Rixonway has a structurally lower gross margin, and by a weaker
sales mix.
Operating profit improved as a result of higher sales volumes, positive exchange
-rate fluctuations and higher sales values.
The return on operating capital including items affecting comparability was 24.5
per cent over the past twelve-month period (Jan-Dec 2014: 23.2). The return on
shareholders’ equity including items affecting comparability was 5.0 per cent
over the past twelve-month period (Jan-Dec 2014: neg: 0.9).
Operating cash flow declined primarily due to negative change in working capital
and higher investments compared with the preceding year.
Comments from the CEO
“The Group’s organic growth amounted to 7 per cent and the operating margin
improved in all regions. Net sales in our two largest regions, Nordics and the
UK, increased to both consumers and professional customers. The introduction of
the low specification Simply Magnet range in the UK was well received. We are
continuing to focus on profitable growth, both organically and through
acquisitions. Providing that the current market situation is maintained, we
expect to be able to achieve the target of an operating margin of 10 per cent
during the next calendar year,” says Morten Falkenberg, President and CEO.
For further information
Please contact any of the following on +46 (0)8 440 16 00 or +46 (0)705 95 51
00:
• Morten Falkenberg, President and CEO
• Mikael Norman, CFO
• Lena Schattauer, Head of Communication and Investor Relations