Kährs Holding AB: Kährs Group: Interim Report January-September 2016

STOCKHOLM--()--Regulatory News:

Continued strong profitability growth in the third quarter of 2016

Third quarter, July-September 2016

· Net sales totalled SEK 708 million (689), an increase of 3 per cent compared with the same period in 2015

· The third quarter showed continued good growth in the Nordics and Europe segments, while the Other Markets and Resilient Global segments were somewhat weaker. Organic sales growth was 4 per cent, including a currency impact (net) of SEK -9 million

· Operating profit before depreciation, amortisation and non-recurring items (adjusted EBITDA) was SEK 81 million (78), corresponding to an operating margin of 11.4 per cent (11.3)

· Operating profit before non-recurring items (adjusted EBIT) for the third quarter increased by 7 per cent to SEK 59 million (55), corresponding to 8.3 per cent (8.0)

· Consolidated profit for the quarter was SEK 21 million (-15) and was primarily affected by an increase in operating profit and lower financing costs compared with the same period in 2015

President and CEO Christer Persson comments:

“Kährs Group continued to develop positively in the third quarter, with sales and profitability growth of 3 and 7 percent respectively. Most of our core markets, including Sweden, Norway, the US and several large markets in Europe performed well, and provided good balance for the markets that currently have a less favourable market situation. The Group's product strategy is working well and our assessment is that we are gaining market share in several core markets.

The implementation of our new business plan is ongoing and initiatives relating to digitalization are of high priority. The transformation, in accordance with our digitalization strategy, is progressing as planned and offer significant opportunities to strengthen our relations with customers and end consumers.”

About Kährs Holding AB (publ)

Kährs Holding AB (publ) is a world-leading flooring manufacturer in hardwood and resilient flooring with a number of strong brands in its product portfolio, including Kährs, Karelia and Upofloor. The Company's innovations have shaped the industry throughout history and Kährs Group is dedicated to providing the market with innovative new flooring solutions. Kährs Group, which delivers products to more than 70 countries, is the market leader in Sweden, Finland, Norway and Russia and holds a strong position in other key markets, such as the UK and Germany. The Group has approximately 1,600 employees and annual sales of EUR 300 million. www.kahrsgroup.com

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Contacts

Kährs Group
Christer Persson, President and CEO
tel: +46 70 271 20 14
or
Helén Johansson, Corporate Communication
tel: +46 70 364 60 30

Contacts

Kährs Group
Christer Persson, President and CEO
tel: +46 70 271 20 14
or
Helén Johansson, Corporate Communication
tel: +46 70 364 60 30