Decline in kitchen market

 

 

Nobia's sales for the full-year 2008 amounted to SEK 15,991 million (16,134). Profit after tax amounted to SEK 555 million (958). Earnings per share amounted to SEK 3.29 (5.50) after dilution. The proposed divdend amounts to SEK 1.25 (2.50) per share.

 

Demand for kitchens weakened gradually throughout the year, first in the new-build segment in the Nordic region and

subsequently in the renovation segment in all of Nobia's primary markets.

 

Operating profit amounted to SEK 951 million (1,353) and the operating margin was 5.9 per cent (8.4). Lower volumes, a changed sales mix, investments in the store sector and exchange-rate effects had a negative impact on operating profit for the year. Exchange-rate effects amounted to approximately negative SEK 110 million, distributed between translation effects of SEK 30 million and transaction effects of SEK 80 million, primarily caused by a weaker GBP and SEK against a strengthened EUR and USD.

 

Operating cash flow amounted to SEK 42 million (949), which is attributable to such factors as weaker operating profit and increased working capital tied-up.

 

Net debt was charged with acquisitions of stores in Denmark and Germany during the year.

 

the efficiency of the Group's structure. Fewer units will lead to lower costs, efficiency improvements and a rational supply chain. We are now adapting production by closing or reducing production at several units. The aim of these and other measures is to significantly strengthen the cash flow. Nobia has strong brand and market positions which we will continue to enhance," says President and CEO Preben Bager.