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Magnet Kitchens Owner Nobia Sees Profits Plunge

November 8, 2024

Kbb News - With more and more bad news for the Kbb market throughout 2024 it may still come as a surprise that Magnet Kitchens owner Nobia sees profits plunge and in doing so, confirms closure of 15% of its UK showrooms.

The well known Swedish kitchen manufacturer Nobia, which is best known in the UK through its brand Magnet also owns lesser known kitchen brands Commodore, CIE, Gower, has seen a massive downturn in its profits following another year of relatively flat year-on-year sales.

Whilst sales were flat, which is not surprising given the the challenging Kbb market in the UK, what will come as a greater shock is that Nobia’s UK operating profit for Q3 fell by a staggering total of almost 200% year-on-year, falling from 65m SEK (£4.6m) during Q3 2023, to -58m SEK (-£4.1m) at the end of the latest financial quarter.

The UK was far from the only poor performing market for Nobia but whilst Nobia’s global net sales were down by almost 6% it is again the profit figures that are more worrying, with the disappointing Q3 plunge further evidenced in the end-of-year financial results.

Released in February 2024 the Nobia end-of-year financial results reported a worrying 150% drop in operating profits across 2023.

Nobia Share Prices Continues to Plunge

The latest news that Swedish kitchen manufacturer Nobia sees profits plunge isnt the only signs of trouble for the business amid continued challenging trading conditions in all of its markets as the share price has continued to tumble.

Shares in Nobia AB (Nasdaq Stockholm ticker: NOBI) are currently trading at around the 4.0 Swedish Krona level, down from its last high of 35.59 Swedish Krona in July 2021, representing a fall of almost 90% in just over 3 years.

However, looking ahead to the next quarter and beyond, Nobia believes that its fortunes will turnaround as the business nears completion of its restructuring and improvement plan in 2025.

Nobia CEO Ljungfelt commented : “We are advancing with our strategic agenda by gradually ramping up operations in Jönköping, executing our UK turnaround plan and expanding cost-saving initiatives. Given the ongoing market challenges, we are also intensifying our efforts to enhance operational excellence within our new organizational structure including a strong focus on cash generative activities, with encouraging signs of progress already emerging.”