Sweden's Nobia Q2 sales fall on market weakness
Sweden's Nobia Q2 sales fall on market weakness
Overview
Sweden kitchen maker's Q2 sales fell 1% organically amid weak demand
Q2 operating profit and adjusted margin improved despite market volatility and restructuring costs
CEO cites Nobia Park transition as complex, with cost control and consolidation ongoing
Outlook
Company says Nordic kitchen market remains volatile with low demand, no quick rebound expected
Nobia expects additional run-rate savings from cost program starting in third qtr
Company to present timeline and roadmap for Nobia Park and broader consolidation soon
Result Drivers
MARKET WEAKNESS - Co said low demand in the Nordic kitchen market continued to weigh on sales
COST CONTROL - Improved adjusted operating profit and margin attributed to cost discipline and consolidation
PRODUCTION TRANSITION - Transfer of production to Nobia Park in Jönköping remains complex and has created operational challenges
Company press release: ID:nWkr2jPKlQ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 1.50 bln | SEK 1.55 bln (2 Analysts) |
Q2 EPS |
| SEK 0.03 |
|
Q2 Net Income |
| SEK 4 mln |
|
Q2 EBIT | Miss | SEK 70 mln | SEK 92 mln (2 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Nobia AB is SEK26.40, about 90.2% above its July 16 closing price of SEK13.88
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)