Nobia (NOBI) Q4 2024 earnings summary

Executive summary

• Net sales declined to SEK 2,512m in Q4 2024 and SEK 10,538m for the full year, reflecting a weak project market but growth in consumer sales and improved profitability in the Nordics.

• Adjusted operating income turned positive in Q4 at SEK 48m, with Nordic performance driving gains, while reported operating profit was SEK -827m for the year due to SEK -909m in non-recurring items, mainly goodwill impairment and restructuring.

• U.K. operations advanced the asset-light model, closing 14 underperforming stores and consolidating under the Magnet brand.

• Major cost reduction initiatives yielded over SEK 500m in savings since 2023, with SEK 140m realized in Q4 and a further SEK 150m targeted for H1 2025.

• The Jönköping factory became operational in January 2025, delivering its first assembled kitchens and expected to enhance efficiency and margins.

Financial highlights

• Q4 net sales fell 5% year-over-year to SEK 2,512m; organic decline was 7%.

• Adjusted gross margin improved to 38.7% in Q4 (up from 38.0%); full-year adjusted gross margin was 38.2% (36.8%).

• Adjusted operating income rose to SEK 48m in Q4; full-year adjusted operating profit was SEK 82m (74).

• Operating cash flow improved to SEK 138m in Q4; full-year operating cash flow was SEK -652m (from SEK -810m).

• Net debt (excluding leasing and pensions) decreased to SEK 2,221m (from SEK 3,464m); net debt/equity ratio improved to 43.3% (74.3%).

Outlook and guidance

• No short- to mid-term recovery expected in the project market; consumer market shows cautious optimism as inflation and interest rates fall.

• Additional SEK 150m in run-rate savings expected by H1 2025.

• Focus remains on ramping up Jönköping factory, U.K. turnaround, and delivering cost-out programs.