Nobia AB has released its year-end report for 2024, showing a decline in net sales and a significant non-recurring goodwill impairment, yet demonstrating improved earnings despite a challenging market environment.
For Q4 2024, net sales fell to SEK 2,512 million, down from SEK 2,642 million, reflecting a 7% organic decline, largely driven by weaker project market volumes. The company reported an operating profit of SEK -575 million, impacted by a SEK -478 million non-cash goodwill impairment related to its UK-based Commodore business. However, adjusted operating profit improved to SEK 48 million, up from a loss of SEK -32 million in the previous year.
The Nordic region performed strongly, with adjusted operating profit reaching SEK 115 million, a significant improvement from SEK 44 million in Q4 2023. Despite an 11% decline in organic sales due to a soft project market, margin enhancements and cost-reduction initiatives helped increase profitability. Additionally, the region's supply chain saw improved productivity and dispatch reliability.
The UK market remained under pressure, with organic sales flat due to an offsetting mix of growth in consumer sales and a decline in project sales. Adjusted operating profit in the UK was SEK -36 million, slightly improving from SEK -38 million last year. Nobia continues to transition to an asset-light operating model in the UK, incorporating Commodore into Magnet's project organisation and closing 14 underperforming stores. This transition, along with the associated goodwill impairment, was reflected in the financial results.
Nobia's CEO, Kristoffer Ljungfelt, highlighted the company's ongoing efforts to enhance profitability through margin improvements, cost savings, and operational restructuring. SG&A savings from cost-out programmes exceeded SEK 500 million since the beginning of 2023, contributing to improved operating cash flow, which amounted to SEK 138 million.
Looking ahead, Nobia is focused on further margin improvements and leveraging its strong consumer brands. The company expects an additional SEK 150 million in savings from cost-reduction initiatives in the first half of 2025. With the completion of a new Nordic manufacturing site and a renegotiation of long-term financing terms, Nobia is well-positioned to navigate current market conditions and benefit when the market recovers.
Despite the challenges, Nobia remains committed to its strategic agenda and aims to solidify its leadership position in the kitchen sector. The company's Board has recommended no dividend payment for the fiscal year 2024.
More information:
Nobia
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www.nobia.com