Kitchen furniture group says UK market declined

Swedish kitchen furniture group Nobia, owners of UK brand Magnet, has reported a decline in British performance during the fourth quarter.

Nobia said that Q4 Group organic growth was 5%, driven by the Nordics and Central Europe, while the UK declined.

“Project sales continued to be strong in all markets except the UK where social housing and London property markets remained soft,” the company added.

However, despite lockdowns, the positive momentum of consumer sales continued in all markets, including the UK.

Fourth quarter 2020 group net sales amounted to SEK 3,450m (3,445), while profit after tax excl. items affecting comparability amounted to SEK 218m (150).

Jon Sintorn, President and CEO of Nobia, said: “A very unusual year has come to an end, in which we managed to finish on a strong note with a solid result in the last quarter. Despite a partially closed store network during the fourth quarter we were able to continue to serve customers, improve operating profit and generate a solid cash flow.

“We enter this year at a stronger position than I would have anticipated back in April. We have a robust financial position; however the more uncertain times will continue this year and it will be a balancing act investing for the future at the same time as maintaining our more short-term financial performance.

“We have a solid plan, indicators suggest continued underlying demand of our products, and we have a new organisation in place to execute our strategy. I look forward to sharing more details at our capital markets day later this spring.”