October-December 2023
- Net sales were 449.6 MSEK (459.9), a decrease of 2.2% compared to the equivalent quarter in 2023. Organic growth was -4.4%.
- EBITA was 23.1 MSEK (46.6), an EBITA margin of 5.1% (10.1). Last year, there were one-off costs of 6.8 MSEK regarding a relocation to new premises for Hot Bath B.V. in the Netherlands.
- Earnings per share were 0.45 SEK (0.87).
- Cash flow after investing activities amounted to 124.2 MSEK (-1.4).
January-December 2023
- Net sales were 1,938.6 MSEK (1,925.6), an increase of 0.7% compared to 2023. Organic growth was -3.5%.
- EBITA was 219.4 MSEK (281.2), an EBITA margin of 11.3% (14.6).
- The period was affected by one-off costs of 3.2 MSEK regarding an efficiency program in Sweden. The Group has received a subsidy of 7.6 MSEK as compensation for high electricity costs. The previous year was affected by non-recurring costs (-) and cost reductions (+) amounting to +0.9 MSEK. The cost reductions pertained to a repayment from Fora. The costs related to the relocation to new premises in the Netherlands.
- Earnings per share were 3.48 SEK (4.57).
- Cash flow after investing was 216.5 MSEK (20.3).
- The Board of Directors proposes a dividend of 2.50 SEK (2.50).
STATEMENT FROM THE CEO
Tough end to a challenging year
We end 2023 with total sales of 449 MSEK in the fourth quarter, which is 2.2% lower than the corresponding quarter in 2022. The lower sales, combined with a number of factors that had a negative impact on the gross margin, meant that the EBITA margin amounted to 5.1% compared to 10.1% in the corresponding quarter in 2022. The quarter was characterised by a generally weaker market.
All our customer segments continued to be challenged during the fourth quarter with reduced demand. We can see that the very low level of activity, especially in new construction and the more consumer-oriented renovation market, is continuing. We also see that our sales at the end of the year were affected by several customers adjusting their inventory levels and that there were fewer working days compared to 2022. Our assessment is that the coming quarters will continue to show low demand based on the general economic situation in both new construction and renovations in all markets.
The reduced profitability in the quarter is a result of a much lower gross margin due to the lower sales and timing of certain costs, including adjustment of staffing in production and inventory value adjustments. At the factory in Mora, we have a relatively high proportion of fixed costs, which have an impact on the gross margin in the event of lower sales and production utilisation. In 2024, we will therefore continue to work actively on our cost efficiency in all parts of the organisation. An important part of this work is to continue to adapt our inventory levels, where we can see that we have made improvements towards the end of 2023. Based on our current assessment of the economic situation, we will therefore continue to prioritise initiatives to be cost-efficient, but also to highlight our strengths and opportunities as a supplier to new and existing customers.
All our brands are well invested with new products that are adapted to different customer segments and where attractive sustainable design is a clear theme. Our local organisations also work very well to offer a fast and reliable service. In a challenging construction market, we also see advantages with our strength in renovation projects and relatively low dependence on new construction. In 2023, we have also seen that the Swedish exchange rate and short transport distances due to local manufacturing benefit our customers, especially in Sweden. We believe this will continue this year.
In a challenging economic situation, we therefore see ourselves as well positioned and with a strong belief in the investments we have made in all our brands and products. In the coming months, we are also very much looking forward to showcasing ourselves at the kitchen and bathroom fair KBB in Birmingham, the global design fair Salone de Mobile in Milan and the Nordic construction industry's major trade fair Nordbygg in Stockholm. These are exciting and important opportunities to showcase our ability to be a strong partner to both new and existing customers.