Kährs Group Reports Q4 Sales Drop, Sees Order Uptick Amid Market Challenges
The company's Q4 sales fell 11% to SEK 545 million [US $51 million] compared to the same period last year, with both Nordic and North American markets showing continued weakness. However, order intake increased by 4%, marking the first growth in order backlog since Q3 2022, rising SEK 28 million [US $2.6 million] or 13%.
During the quarter, Kährs completed the divestment of its Russian operations, resulting in a SEK 14 million [US $1.3 million] capital loss. The company also secured new bond financing with a four-year maturity extending to November 2028, though this led to financial costs of SEK 62 million [US $5.8 million]
CEO Johan Magnusson expressed optimism about future market conditions, citing expected interest rate cuts as a potential catalyst for demand recovery. "Despite a decline in consumer disposable income in 2024, the renovation segment shows signs of recovery," Magnusson noted.
The company is implementing strategic initiatives, including consolidating European production of parquet and multi-layer wood flooring in Sweden while expanding its presence in key markets. Notable developments include a new American-made parquet collection and the launch of PVC-free flooring made from recycled materials for healthcare and education sectors.
For the full year 2024, Kährs reported net sales of SEK 2,391 million , down 17% from 2023, with operating EBITA margin declining to 3.1% from 8.7% the previous year.
