Kährs Group: Year-End Report 2024

Kährs' order intake increased in the fourth quarter by 4 per cent compared to the previous year. For the first time since the third quarter of 2022, the order backlog also grew by SEK 28 million or +13 per cent. However, Kährs' sales continued to decrease by 11 per cent organically in the fourth quarter. Both the Nordics and North America continued to show weak performance. Europe showed improved performance compared to the fourth quarter of 2023, while APIM showed strong growth. Operational profitability was negatively impacted by the low sales, but measures linked to reducing overhead were taken and began to have an effect in the fourth quarter of 2024 with continued effect into 2025.
 

Fourth quarter 2024

• Sales amounted to SEK 545 million (612), which was a decrease of -11 per cent. Organic change adjusted for currency was -11 per cent 
• Operating EBITA amounted to SEK 4 million (35), corresponding to an operating EBITA margin of 0.7 per cent (5.7)
• Operating profit totalled SEK -29 million (27), corresponding to an operating margin of -5.4 per cent (4.6)
• The result for the period amounted to SEK -121 million (-2)
• Cash flow from operating activities totalled SEK 70 million (144)
• Non-recurring items in the quarter amounted to SEK -28 million (-1) and were attributable to the restructuring of operations in Russia and Romania
• Kährs has, during the period, fully divested its Russian operations. The divestment resulted in a capital loss of SEK -14 million during the fourth quarter. Russia is included in reported figures until December 3, 2024
• Kährs also secured during the fourth quarter new bond financing with a maturity of four years. The new bond matures in November 2028. The financial costs for this amounted to SEK -62 million
   

January–December 2024

• Net sales amounted to SEK 2,391 million (2,897), which was a decrease of -17 per cent. Organic change adjusted for currency was -15 per cent 
• Operating EBITA amounted to SEK 73 million (253), corresponding to an operating EBITA margin of 3.1 percent (8.7)
• Operating profit totalled SEK -54 million (182), corresponding to an operating margin of -2.3 per cent (6.3) 
• Result for the period amounted to SEK -253 million (30)
• Cash flow from operating activities totalled SEK 90 million (108)
• Non-recurring items in the period amounted to SEK -109 million (-51) and of which SEK -84 million was attributable to impairment of Russian assets, SEK -14 million to the restructuring of operations in Romania, and SEK -11 million to customs costs in the USA 

 
President and CEO Johan Magnusson comments:
The markets for residential construction and commercial properties remain cautious in the short term. However, we are optimistic about the future, anticipating that implemented interest rate cuts will boost demand in these segments. Despite a decline in consumer disposable income in 2024, the renovation segment shows signs of recovery, with increased sales of private homes and a rebound in new construction expected to drive demand for our premium flooring solutions.

We continue to adapt our production capacity to the market, concentrating our European production of parquet and multi-layer wood flooring in our Swedish facility. At the same time, we are expanding our global presence with sustainable innovations and a strategic focus on key markets and subsegments.

Noteworthy strategic initiatives include the new parquet collection for the American market, produced in the USA; the launch of our revolutionary PVC-free floor made from recycled material, designed specifically for the healthcare and education sectors; and the upgrade of our popular wood flooring concept Life, which has recently hit the market.

Kährs is dedicated to long-term growth through the introduction of innovative and sustainable products that enhance the customer experience. Our commitment to key markets in Europe and the USA, coupled with our adaptability to market challenges, ensures that we continue to deliver short-term value while positioning ourselves for future success.