Nobia (NOBI) Q2 2024 earnings summary

Executive summary

• Net sales declined to SEK 2,933m in Q2 2024, with organic sales down 6% year-over-year; UK region grew 5% organically, while Nordics fell 14%.

• Gross margin improved to 39.4% from 35.9%, driven by a higher share of retail sales and favorable product mix.

• EBIT increased to SEK 42m from SEK 36m year-over-year, with EBIT margin rising to 1.4% from 1.2%.

• Retail sales showed positive development and market share gains in the UK, while project volumes were significantly down across all geographies.

• Strategic initiatives included a completed rights issue, divestment of non-core assets, and cost reduction programs.

Financial highlights

• Q2 operating cash flow improved to SEK -53m from SEK -276m year-over-year, mainly due to favorable working capital.

• Gross margin in the Nordics rose by 6.3 percentage points to 38.2%, supported by favorable mix.

• Financial net debt reduced to SEK 1,934m from SEK 2,505m, with net cash flow of SEK 2,600m year-to-date.

• UK organic sales increased 5%, with double-digit retail growth offset by declines in project and trade.

• Cash flow from operating activities was SEK 165m, nearly SEK 100m higher year-over-year.

Outlook and guidance

• No improvements expected in the project market for 2024; retail and consumer segments show early recovery signs, especially in the UK and Denmark.

• Further cost programs and efficiency measures may be launched to address profitability in a soft market.

• Focus remains on driving growth in the consumer segment and completing strategic initiatives in both Nordic and UK regions.