Nobia achieved minor growth in sales revenue in Q1

Net sales revenue generated by the Swedish kitchen furniture manufacturer Nobia rose by 2% to SEK3.323bn in the first quarter. Adjusting for currency effects and the sales revenue of the British kitchen companies Commodore Kitchens and CIE taken over on 1 November 2015, results in organic growth of 3%.

All regions contributed to the slight increase. In northern Europe and the UK, which account for a combined 90% of the total, sales revenue rose by 0.9% and 3.7% respectively to SEK1.398bn and SEK1.578bn. Adjusting for currency effects and acquisitions, growth of 4% was recorded for northern Europe, and 2% for the UK. Sales revenue generated in continental Europe rose by 1.2% to SEK349m or, adjusted, by 2%. Here, positive development was recorded by the German kitchen manufacturer Poggenpohl as well as in its activities in Austria. Poggenpohl was able to compensate for lower sales revenue than last year in its own kitchen studios by growth in sales in project business. Nobia attributes the growth in Austria to higher revenue in export sales and to business with purchasing organisations.

In spite of the positive development in sales revenue, the operating result turned out to be slightly negative in the “Continental Europe” region at -SEK3m. According to Nobia, the operating loss is partly due to the effects of foreign exchange. The Northern Europe and UK regions, on the other hand, were both able to record an operating profit at SEK163m (+7.9%) and SEK111m (+18.1%) respectively.
In the group as a whole, operating profit rose by 11% to SEK235m, partly due to lower raw material costs. Post-tax profit rose on a similar scale by +12% to SEK171m.

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