Strong sales in a turbulent market
First Quarter 2022
Net sales totalled SEK 1,049 million, with strong sales in the residential segment where Kährs is growing faster than the market in basically all main markets
Operating EBIT totalled SEK 123 million, corresponding to an operating margin of 11.8 per cent
In December 2021, Kährs BondCo AB refinanced and issued a sustainable linked bond of SEK 1,450 million which was finalized in January 2022 in the Kährs Group
The Group was subject to a change of ownership on 31 August 2021 and in connection with the subsequent refinancing, Kährs BondCo AB became the new parent company in the Group and this report is the first interim report with Kährs BondCo as parent company. Due to this, no comparative figures are available for periods earlier than 31 August 2021
The global supply chain for oak and plywood has been heavily impacted by Russia’s invasion of Ukraine. Kährs has decided to, in addition to sanctions, stop all investments as well as import and export flows from Europe to and from the company's operations and other suppliers in Russia. The company has, through its well-diversified supply structure, redirected all commercial flows between Europe and Russia and secured supply to its European factories
In Quarter 1, the factory in Romania increased its capacity by 25% to meet the increase in demand
Launch of Zero & Green, a new Nordic Swan Ecolabelled Enomer® product which further strengthens Kährs’ sustainability profile
President and CEO Johan Magnusson comments:
In the first quarter, Kährs posted record-setting net sales of more than SEK 1 billion with strong margins and an operating EBITA of SEK 124 million and an EBITA margin of 11.8 per cent, a result deriving from continued price increases and good cost control during the first quarter of the year. All customer and product segments and main markets are posting good sales in both new construction and renovation projects, strengthened by Kährs’ new sustainable and innovative product offerings that were launched over the past few years.
In summary, Kährs recorded a great first quarter despite all the uncertainties related to the access to raw materials, components and freight and an immediate shift in our operations in Russia. Our strategic direction is showing strength through continuous improvements in profit. It is Kährs’ loyal and dedicated employees who are making a difference, and I would like to take this opportunity to thank all of them for their incredible commitment and drive. The teamwork demonstrated by every single employee at Kährs has been fantastic.
Interim Report Kährs BondCo AB (publ) Q1 2022