Kährs Group: Strong sales growth with stable underlying operating profit
Kährs Group,flooring,Sweden,second quarter report,strong sales growth
Net sales for the Kährs Group totalled SEK 844 million (792), or US$95.4 million, an increase of 7 per cent compared with the same period in 2017. Organic sales growth was 6 per cent.
Operating EBITA rose 1 per cent and totalled SEK 76 million (75), or US$8.6 million corresponding to an operating margin of 9.0 per cent (9.5). Market valuation of the Group’s FX Futures had a negative impact on earnings of SEK 5 million, or US$564,775.
Operating profit (EBIT) for the second quarter improved by SEK 24 million, or US$2.7 million and totalled SEK 70 million (46), or US$7.9 million, corresponding to 8.3 per cent (5.8). Profit was positively affected by higher net sales, stable overhead and lower items affecting comparability, 6 million (30), or US$677,730 during the quarter. The negative impact on profit was primarily related to the market valuation of the company’s FX Futures
Consolidated profit for the quarter was SEK 27 million (35), or US$ 3.1 million.
Earnings per share totalled SEK 903 (1,111).
President and CEO Christer Persson commented that ”Kährs Group reported continued robust sales growth of 7 per cent in the second quarter. The Nordics and Resilient Global segments demonstrated the strongest growth, while sales for the Europe and Other Markets segments declined somewhat. Operating EBITA increased by 1 per cent during the quarter to SEK 76 million, corresponding to an operating margin of 9.0 per cent. However, the revaluation of our FX Futures portfolio had a negative impact on earnings.”
He also remarked that “overall, we can conclude that 2018 is off to a good start and I confidently look forward to our continued journey. By focusing on the needs of our customers, we continually strengthen our market position.”