2023-05-25 - Kährs Group Regulatory
Kährs Group: Interim Report January-March 2023
Stable profitability despite a decrease in demand
Kährs net sales decreased by -18 percent, in line with the market development in Kährs main market areas, due to weak development within Residential in the Nordics and Europe, while Commercial showed growth. Profitability was sustained by a continued strong gross margin and good cost control.
The first quarter 2023
- Net sales amounted to SEK 863 million (1,049), which was a decrease of -18 per cent. Organic change was -25 per cent
- Operating EBITA amounted to SEK 105 million (124), corresponding to an operating margin of 12.2 per cent (11.8)
- Operating profit totalled SEK 96 million (118), corresponding to an operating margin of 11.1 per cent (11.2)
- Profit for the period amounted to SEK 53 million (66)
- Cash flow from operating activities totalled SEK -26 million (16)
- During the first quarter, Kährs also announced another round of capacity reductions to further compensate for the decrease in demand
President and CEO Johan Magnusson comments:
The start of 2023 has been a challenge as demand in the housing segment in Europe continued to weaken. In addition, we have tough comparison figures from last year’s record-setting quarter with organic growth of 24 per cent. Despite the challenges due to the weakened demand in the residential segment in Europe, Kährs’ profitability-enhancing measures are demonstrating strength and our profit margins continue to be at a high level. We are making our second highest profit for a first quarter to date by increasing our gross margins, having continued growth within Commercial and successfully adapting our operations to lower demand.
Our financial position enables us to continue to invest in our strategy of more long-term acceleration in both the USA and select markets in Europe outside of the Nordics with the help of new, innovative and sustainable product platforms and the further development of digital interfaces with our customers.
More sustainable construction, a focus on housing quality, and demand for sustainable flooring products with good design mean that we continue to be optimistic in the long term. Consumers’ increased interest in their home and immediate surroundings and the possibility of working from home are clear trends that create more opportunities for Kährs.