Kährs Group: Interim Report January-March 2025

Kährs' order intake decreased marginally by 1 per cent in the first quarter compared to the previous year. The order backlog continued to grow slightly, +1 percent. Increased geopolitical uncertainty cooled demand at the end of the first quarter. Kährs' sales decreased by 8 per cent organically in the first quarter.

First quarter 2025

• Sales amounted to SEK 541 million (643), which was a decrease of -16 per cent. Organic change adjusted for currency was -8 per cent
• Operating EBITA amounted to SEK 22 million (39), corresponding to an operating EBITA margin of 4.1 per cent (6.1)
• Operating profit totalled SEK 18 million (34), corresponding to an operating margin of 3.3 per cent (5.3)
• The result for the period amounted to SEK 0 million (-12)
• Cash flow from operating activities totalled SEK 41 million (36)
   

President and CEO Johan Magnusson comments:
Consumer sales are showing signs of recovery, driven by increased interest in home renovations. The segment in Europe is strengthening thanks to lower inflation and interest rates, which promotes purchases of durable goods such as flooring. We have continued to strengthen our positions and are growing compared to the previous year in several key markets, primarily within the renovation segment. 

The project market in primarily the Nordics and the USA remains challenging due to a continued low start-up rate in newbuilt.

The market for residential newbuilt and commercial properties remains cautious, given the uncertain geopolitical situation, which, among other things, poses a risk of increased trade barriers in the form of tariffs that could lead to increased uncertainty.

Despite geopolitical uncertainty and the risk of new trade barriers, we see a brighter longer-term outlook, with expectations of increased stability and improved consumer confidence as interest rates fall. The focus remains on growth in Europe and the US, innovation of sustainable products and an even better customer experience strengthened by our new digital interfaces. We are highly prepared to deal with market challenges due to increased geopolitical uncertainty to ensure both short-term and long-term value.