STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
• Net sales for the third quarter amounted to SEK 3,204 million (2,695), positively affected by organic growth, currency gains and the acquisition of Rixonway Kitchens.
• Organic growth was 9 per cent (neg: 2).
• Operating profit amounted to SEK 343 million (256), corresponding to an operating margin of 10.7 per cent (9.5).
• Currency gains of approximately SEK 15 million had a positive effect on the Group’s operating profit, of which SEK 20 million comprised translation effects and negative SEK 5 million transaction effects.
• Profit after tax, including items affecting comparability, amounted to SEK 258 million (loss: 323), corresponding to earnings per share of SEK 1.52 (loss: 1.93). Items affecting comparability was SEK 0 million (loss: 477).
• Operating cash flow amounted to SEK 274 million (171).
Consolidated net sales, earnings and cash flow
Overall market performance is deemed to have improved compared with the year-earlier period. The Nordic and the UK markets strengthened, while Nobia’s markets in the Central Europe region were unchanged.
Sales increased organically 9 per cent (neg: 2). Currency gains of SEK 176 million (220) affected sales for the quarter. Rixonway Kitchens, which was acquired during the fourth quarter of 2014, reported sales of SEK 111 million for the third quarter of 2015.
The gross margin amounted to 40.9 per cent (42.1), negatively impacted by a changed sales mix and by a structurally lower gross margin from Rixonway Kitchens.
Operating profit improved primarily as a result of higher sales volumes, lower material prices and positive exchange-rate fluctuations.
The return on operating capital including items affecting comparability was 25.7 per cent over the past twelve-month period (Jan-Dec 2014: 23.2). The return on shareholders’ equity including items affecting comparability was 21.9 per cent during the past twelve-month period (Jan-Dec 2014: neg: 0.9).
Operating cash flow increased due to higher earnings generation and a positive change in working capital compared with the preceding year.
Comments from the CEO
“The Group’s organic growth amounted to 9 per cent and was the result of higher sales volumes in all regions. The operating margin continued to strengthen and now amounts to 9.4 per cent for the most recent twelve-month period. We are continuing to harmonise the range to generate economies of scale. At the same time, we will grow organically and through acquisitions. We stand firm in our expectations to achieve the target of an operating margin of 10 per cent during the next calendar year,” says Morten Falkenberg, President and CEO.
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