The latest results from the Nobia Group (April – June 2015) with 20-or-so brands including Magnet, Poggenpohl, ewe, Goldreif and Rixonway Kitchens enjoyed increased growth in its UK region with net sales up to SEK 1,571m. compared with SEK1,173m. for the same period in 2014.
UK growth, says Nobia, was primarily attributable to the lower price segments in the market, with organic sales growth was chiefly attributable to Magnet, but B2B sales also increased. Meanwhile, Magnet’s transition to the Group’s common standard dimension was completed
In Magnet, growth was mainly attributable to sales to consumers, but the project segment also grew. The Simply Magnet product range, which was launched during the third quarter of 2014, was well received by customers. Rixonway Kitchens, which was acquired in the fourth quarter of 2014, reported net sales of SEK 104 m. during the second quarter of 2015.
Gross margin declined slightly, negatively impacted by lower sales values and an effect of the acquisition of Rixonway, and positively impacted by favourable currency gains and lower prices of materials.
The improvement in UK operating profit was mainly due to positive currency gains and higher sales volumes.
Nobia’s market in Central Europe meanwhile is deemed to have declined compared with the year-earlier period. The Austrian market performed particularly negatively during the period. Organic growth was negative too, and this said Nobia was attributable to both the Austrian operations and Poggenpohl. The decline in sales in Austria was due to a negative market trend. Poggenpohl’s sales decline was due to lower sales in own stores, and lower project deliveries to Asia.
Morten Falkenberg, Nobia’s President and CEO said:
“The Group’s organic growth amounted to 7 per cent and the operating margin improved in all regions. Net sales in our two largest regions, Nordics and the UK, increased to both consumers and professional customers,”
“The introduction of the low specification Simply Magnet range in the UK was well received.”
“We are continuing to focus on profitable growth, both organically and through acquisitions. Providing that the current market situation is maintained, we expect to be able to achieve the target of an operating margin of 10 per cent during the next calendar year.”