Nobia (NOBI) Q4 2024 earnings summary

Executive summary

• Net sales declined to SEK 2,512m in Q4 2024 and SEK 10,538m for the year, mainly due to weak project markets, especially in the Nordics, while consumer sales showed growth and market share gains.

• Adjusted operating income turned positive in Q4 at SEK 48m, with full-year adjusted operating profit at SEK 82m, but reported EBIT was negative due to SEK 909m in non-recurring items, mainly goodwill impairment and restructuring.

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

• The Jönköping factory became operational in January 2025, with first kitchens delivered and full automation targeted by summer 2025.

• The UK segment continued its asset-light transition, closing 14 underperforming stores and integrating the Commodore brand into Magnet B2B.

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 in Q4 was SEK 48m; operating cash flow improved to SEK 138m from negative SEK 188m last year.

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

• SEK 190m received from a sale and lease-back transaction; SEK 100m remains outstanding.

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 targeted by H1 2025; focus on ramping up Jönköping factory and further UK restructuring.

• Strategic agenda includes leveraging group scale and renegotiated long-term financing.