KH Groups tredje kvartal var blandat: KH-Maskiner och Indoor Group presterade som förväntat, medan Nordic Rescue Group (NRG) överraskande var svag. KH-Maskiners omsättning ökade med 5 % trots marknadsutmaningar, där tillväxten främst stöddes av maskinuthyrning. Indoor Groups omsättning sjönk med 9 % på en svag möbelmarknad, men bolagets kostnadsbesparingar gav en bättre lönsamhet än väntat. NRG påverkades negativt av låga kundleveranser, även om kapaciteten är fullbokad för nästa år. KH Group rapporterade en positiv nettoresultat på 2,8 miljoner euro, stödd av försäljningen av HTJ, och koncernens nettokassa är stark, vilket möjliggör stöd till dotterbolag vid behov.
KH Group Plc
Stock Exchange Release 1 November 2024 at 8:00 am EET
KH Group Plc’s Business Review January–September 2024:
Moderate profitability in a demanding market
This is the summary of the Business Review for January–September 2024. The full Business Review is attached to this release and is also available on the company’s website at www.khgroup.com.
KH Group, July–September 2024 pro forma
- Net sales amounted to EUR 85.7 (91.1) million.
- Operating profit was EUR 3.3 (4.1) million.
- The net sales of KH-Koneet were slightly better than in the comparison period and operating profit remained nearly unchanged from the comparison period.
- Indoor Group’s net sales and operating profit were below the level of the comparison period.
- NRG’s net sales and operating profit were below the level of the comparison period.
- KH Group divested its holdings in HTJ.
KH Group, January–September 2024 IFRS
- Net sales amounted to EUR 253.2 (161.0) million. The figure for the comparison period includes net sales accumulated in May–September 2023 and HTJ is classified as a discontinued operation retroactively.
- Operating profit was EUR 0.8 (-17.5) million.
- Net profit for the period was EUR -3.3 (-12.1) million.
- Earnings per share (undiluted and diluted) were EUR -0.02 (-0.15).
- Equity per share at the end of the review period was EUR 1.30 (1.39).
- Return on equity for rolling 12 months was -7.1% (-14.5%).
- The Group’s cash and cash equivalents amounted to EUR 11.6 million at the end of the review period
- Gearing at the end of the review period was 195.6% (195.4%).
- Gearing excluding lease liabilities was 120.6% (115.1%).
CEO Ville Nikulainen:
"Our consolidated pro forma net sales and operating profit declined year-on-year. KH-Koneet’s net sales increased moderately and operating profit was nearly at the same level as in the comparison period, which means that the market share increased in a declining market. For Indoor Group, the general market uncertainty, the increase to the general value-added tax rate in Finland and the deployment of a new ERP system in spring 2024 had a negative impact on net sales and operating profit.
On 15 August 2024, KH Group announced the launch of an extensive operating model reform programme aimed at improving the group company Indoor Group’s profitability. The reform includes development initiatives to stabilise Indoor Group’s financial situation in the challenging furniture industry market environment. The company aims for an annual operating profit improvement of at least EUR 10 million by the end of 2026. Based on current information, a significant part of the targeted profitability improvement is estimated to be realised already during 2025. KH Group published a stock exchange release on 10 October 2024 concerning the reform of Indoor Group’s operating model and change negotiations.
Nordic Rescue Group’s pro forma net sales and operating profit decreased year-on-year during the seasonally weaker quarter. The demand for rescue vehicles in Sweden has remained at a good level but, in Finland, the budgeting phase of the wellbeing services counties has slowed down the accrual of new orders during autumn 2024.
In the fourth quarter, the business areas will focus on securing net sales and operating profit as well as improving the efficiency of working capital. KH Group’s change in strategy is progressing according to plan.
On 9 August 2024, the company updated its earlier guidance on net sales and operating profit for 2024. The calculation of the guidance is based on Indoor Group’s lower than expected net sales and operating profit in both the first and second half of 2024. According to the updated guidance, the company estimates, with the current Group structure, to reach pro forma net sales of EUR 340–360 million and operating profit of EUR 4–7 million in 2024."
Events after the review period
During the current year, Indoor will continue to implement measures aimed at improving profitability. KH Group published a press release on 10 October 2024 concerning the reform of the operating model and change negotiations.
Future outlook
KH Group’s medium-term objective is to become an industrial group built around the KH-Koneet business and to divest other business areas in line with previous strategy. At the same time, active developments will continue regarding other business areas. Exit planning and the assessment of exit opportunities for the other business areas will also continue.
On 9 August 2024, the company updated its earlier guidance on net sales and operating profit for 2024. According to the updated guidance, with the current Group structure, the company estimates pro forma net sales for 2024 to be EUR 340–360 million and operating profit to be EUR 4–7 million.
KH GROUP PLC