Nobia Ab · OMXSTO:NOBI
Nobia Ab — Q1 2022 Earnings Presentation
17 slides from Nobia Ab's earnings presentation, 2022
Slide 1: Q1 2022 Results Presentation
Q1 2022 Results Presentation Jon Sintorn, CEO Kristoffer Ljungfelt, CFO
Slide 2: Highlights first quarter 2022
Highlights first quarter 2022 • Continued organic growth and market demand • Further material supply disturbances and escalating raw material prices related to the war Ukraine − Further price increases to the market • Group operating profit SEK 182m (196), margin of 4.8% (5.8) − Nordic region 8% org
Slide 3: Region UK transformation
Region UK transformation • Focus on Magnet brand and OEM sales to Wickes - Commodore & CIE transferred to Portfolio Business Units • Leverage renewed Magnet brand proposition - Retail, trade and project • Invest in customer facing activities - The best kitchen designers, sales and design tools • Ava
Slide 4: Cost program
Cost program • The program is proposed to scale down UK central support functions in order to invest in the customer facing organization, in line with Magnet’s new revised operating model • Annual run-rate saving of ~SEK 150m • One-time cost of SEK 130-150m, will be charged to income in Q2 • Around
Slide 5: Kitchen market development
Kitchen market development Nordic market: Continued favourable market development in consumer as well as project markets. No immediate impact from geopolitical challenges. UK: The market is growing in value, with the trade segment taking larger share. London super-premium project market and social h
Slide 6: Tomorrow Together Strategy - priorities
Tomorrow Together Strategy - priorities Sustainability and Design Leadership ambition: Growth Acceleration initiatives: Leading the industry through reduced environmental • Catapult trade growth footprint and beautiful and purposeful design • Revitalise consumer retail • Reinforce project leadership
Slide 7: New factory in Jönköping
New factory in Jönköping • Progressing according to plan • Half of the building is raised • First production equipment is currently being installed 7
Slide 8: “Nordic Nature” wins Ideal Home’s Kitchen of the Year award
“Nordic Nature” wins Ideal Home’s Kitchen of the Year award 8
Slide 9: Nobia Group, Q1
Nobia Group, Q1 • Continued good organic growth, supported by price increases 2021 2022 Q1 Q1 – 8% up in Nordics – 8% up in the UK Net sales (SEKm) 3,373 3,779 – Decline of 7% in Portfolio Business Units • EBIT declined to SEK 182m (196) Organic growth, (%) 3 6 – Extraordinary price increases Gross
Slide 10: Direct material pricing impact update
Direct material pricing impact update • Significant inflationary pressure on direct material Packaging & continues Joinery Chemicals 5% − First wave of increases after Corona lockdowns 6% − Second wave of increases following the war in Ukraine Appliances Frontals 26% • On cost for material, energy a
Slide 11: Net sales, rolling 12 months
Net sales, rolling 12 months The Group Region UK Austria Other 5% 2% The Netherlands 6% Finland Magnet Magnet 7% Region UK Retail Trade Norway 33% 32% 34% 10% Sweden Other Magnet 14% 18% Denmark Project 23% 15% Benchmarx 1% 11
Slide 12: Nordic region, Q1
Nordic region, Q1 • Organic net sales increased 8% 54% of Q1 Group sales – Growth across all markets 2021 2022 • Higher average order values and favorable mix Q1 Q1 • Gross margin burdened by inflationary pressure Net sales (SEKm) 1,826 2,040 • Continued solid orderbook Organic growth (%) 9 8 Gross
Slide 13: UK region, Q1
UK region, Q1 • Organic net sales growth 8% (-6) 34% of Q4 Group sales – 17% growth excl. the discontinued Benchmarx sales – Strong winter sales campaign in Magnet 2021 2022 – Improved average order values Q1 Q1 • EBIT increased from a loss to breakeven Net sales (SEKm) 1,092 1,279 – Increased avera
Slide 14: Portfolio Business Units, Q1
Portfolio Business Units, Q1 • Organic net sales declined 7% 12% of Q4 Group sales – Weak market for Commodore & CIE’s luxury London segments 2021 2022 – Double-digit growth in Austria Q1 Q1 – First quarter with Superfront • Lower EBIT due to inflationary environment Net sales (SEKm) 455 460 – Highe
Slide 15: Financial position
Financial position Cash flow 2021 2022 Q1 Q1 Operating cash flow -69 -420 • Operating cash flow of SEK -420m (-69) Of w. operating profit 196 182 – Cash flow from operating activities in line with prior year Of w. change in working capital -386 -382 – Investment in fixed assets increased due to the
Slide 16: Going forward
Going forward • Good market conditions short term • Material price increases expected to continue • Average order value improvements expected • Cost program • Continued investments in Tomorrow Together strategy 16
Slide 17: Slide 17