Interim ReportQ2 | 2009
Continued weak market
(All figures in brackets refer to the corresponding period in 2008.)The recession continued to have a negative impact on the demand for kitchens. At the end of the period, demand was between 10 and 30 per cent lower in Nobia’s markets compared with the preceding year. The customers’ purchasing process is taking a longer time and price-consciousness has increased sharply. Nobia’s sales amounted to SEK 4,291 million (4,477) and organic growth was a negative 15 per cent. Profit after tax was SEK 39 million (271) and earnings per share after dilution were SEK 0.23 (1.61). Operating profit for the second quarter, excluding structural expenses of SEK 30 million, amounted to SEK 107 million (417) and the operating margin was 2.5 per cent. Operating profit including structural expenses totalled SEK 77 million (417) and the operating margin was 1.8 per cent (9.3).The strong decline in earnings was attributable to reduced volumes, structural expenses, price pressure and a changed sales mix.The currency effect was SEK 0 million (neg: 55).Operating cash flow amounted to SEK 456 million (11). The improvement compared with the preceding year is Nobia Group SummaryNet sales, SEK mOperating profit/loss excluding structural expenses before depreciation, SEK m (EBITDA)Operating profit/loss excluding structural expenses, SEK m (EBIT) Operating margin excluding structural expenses, %Operating profit/loss, SEK m (EBIT) Operating margin, %Profit/loss after financial items, SEK m Profit/loss after tax, SEK m Earnings per share, after dilution, SEKEarnings per share after dilution, excluding structural expenses, SEK Operating cash flow, SEK mReturn on capital employed, %Return on shareholders’ equity, % Net sales and operating margin*SEK m 7,500 9,0001,5003,0004,5006,00002007Jan–JunNet SalesOperating margin Operating margin excluding structural expensesNet sales amounted to SEK 8,068 million and the operating margin was negative 2.4 per cent. * Values for 2007 have not been restated in accordance with IAS 38.2007Jan–Jun2008Jan–Jun2008Jan–Jun2009Jan–Jun2009Jan–Jun20094,2912561072.5771.855390.230.36456––Apr–Jun2008Change, %4,477–45354179.34179.33772711.611.6111––9.0%−3.0−1.01.03.05.07.0Profitability trend*%25101520%25−5052007Jan–Dec2007Jan–Dec2008Jan–Dec2008Jan–Dec2008/09Jul–Jun2008/09Jul–Jun Return on capital employed Return on shareholders’ equityReturn on capital employed amounted to 2.1 per cent during the past 12-month period.11Earnings per share after dilution amounted to nega-tive SEK 0.54 during the past 12-month period.–52–74––82––85–86–86–78–––20098,068355730.9–195–2.4–244–220–1.32–0.08597––attributable to lower tied-up capital, lower tax paid and reduced investments.Comments from the CEO “Market conditions have remained very difficult,” says President and CEO Preben Bager. “Cash flow was strength-ened considerably as a result of our focused efforts. We are intensifying the scope of the internal initiatives that we have launched, which will lead to a lower overall cost structure through adapted production capacity and enhanced effi-ciency.”Jan–Jun2008Change, %8,312–38566287.66287.65543992.352.35–78–––59–88––131––144–155–156–103–––Earnings per share*SEK per share−10123 4562007Jan–Dec2007Jan–Dec2008Jan–Dec2008Jan–Dec2008/09Jul–Jun2008/09Jul–Jun Jul–Jun2008/0915,7479093782.4920.6–46–90–0.540.748382.1–2.3 Jan–Dec200815,9911,4109335.89155.77525293.133.1816312.613.2