Nobia Ab · OMXSTO:NOBI
Nobia Ab — Q3 2024 Earnings Presentation
14 slides from Nobia Ab's earnings presentation, Nov 5, 2024
Slide 1: Q3 2024 Results Presentation
Q3 2024 Results Presentation Kristoffer Ljungfelt, CEO Henrik Skogsfors, CFO
Slide 2: Nobia Group, highlights Q3
Nobia Group, highlights Q3 • Declining project market, driven by low housing 2023 Q3 2024 Q3 completions, but positive signs in the consumer segment across all markets Net sales (SEKm) 2,697 2,478 • Organic sales decline due to lower project volumes. Organic growth (%) -19 -6 Consumer sales increase
Slide 3: Strategic priorities
Strategic priorities • New Group organisation; decentralisation and local accountability will enable further cost saving measures Maximising cost • Run rate cost improvements of prior launched programs totalling SEK 400m efficiency and • Additional cost program launched in Q2 and Q3; targeting savin
Slide 4: Kitchen market development, Nordic region
Kitchen market development, Nordic region Housing starts per quarter (thousands) Consumer segment; 20 • Consumer confidence remains low but is improving due to 18 positive macroeconomic indicators. • Slight recovery in housing transactions in Sweden and 16 Denmark. 14 • Slight increase in demand fro
Slide 5: Kitchen market development, UK
Kitchen market development, UK Consumer segment; Housing starts per quarter (thousands) • Consumer confidence remains low but improving. 80 • House prices return to growth, with residential transaction 70 levels rising. 60 Project segment • Housing starts well below recent years, with sequential 50
Slide 6: State-of-the-art new Jönköping factory
State-of-the-art new Jönköping factory Dålig upplösning på bilden, kan vi inte ha en riktig, den fiinns ju nu! • Ramp up in 2025, starting from January • Customized kitchens at large scale in Europe’s most modern kitchen factory • Latest automation and digitalization technology • Step-change perform
Slide 7: Nordic supply chain recap
Nordic supply chain recap Nordic estimated EBIT-margin run rate impact [%pt] 3.5% Nastola Eggedal +1.0% -2.3% 1.2% Tidaholm +2.5% Ölgod Jönköping Factory-GM% Freight EBITDA impact Depreciation Total 7
Slide 8: Finalization of new factory is progressing well
Finalization of new factory is progressing well • Completed industrialization of panels, flat pack cabinets and certain frontals • Industrialization of frontal manufacturing and full kitchen assembly ongoing • Remaining capex ~650 MSEK (and ~300 MSEK remaining payment sale & leaseback transaction) •
Slide 9: The road to an asset light operating model in the UK
The road to an asset light operating model in the UK 3 2 Phase 3 – 2024/25 • Capitalize on mass premium. 1 Phase 2 – 2023/24 • Expand the asset light distribution model by • Change operating model by leveraging external Phase 1 – 2023/24 targeting the mass premium partnerships. segment for higher AO
Slide 10: Nordic region Q3
Nordic region Q3 Share of R12 sales by segment Share of R12 sales by country Finland • Organic net sales declined -11% (-22) 8% Retail Norway • Consumer sales slightly up, while project segment Project 35% 20% Denmark continues to decline double digit 50% 49% Trade Sweden • Gross margin improvement
Slide 11: UK region Q3
UK region Q3 Share of R12 sales by segment Share of R12 sales by channel Other Project • Organic sales flat (-17%) 18% Retail 16% DIY Project 39% • Continued market headwinds in project and trade sales 16% 18% Stores was compensated by growth in consumer sales Trade 66% 27% • Gross margin erosion du
Slide 12: Financial position
Financial position Cash flow 2023 Q3 2024 Q3 Cash flow from operating activities 177 -20 • Cash flow improvement driven by lower investments in Operating cash flow -305 -154 fixed assets Of w. operating profit* 99 -37 • Investments in Jönköping factory SEK 93m (362) Of w. change in working capital -
Slide 13: Priorities going forward
Priorities going forward • Advance on our strategic agenda - Ramp-up Jönköping factory - Turnaround of the UK operations, including review of further activities - Deliver on our cost out programs • Leverage daily operations in new decentralized organisation - Capture growth in consumer sales - Incre
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