Progress in line with strategy; business performance mainly positive - Seite 2

Our consolidated pro forma net sales and operating profit declined significantly year-on-year. KH-Koneet's net sales increased moderately and operating profit was at the same level as in the comparison period. The Finnish and Swedish businesses were close to each other in terms of net sales and operating profit. 

General market uncertainty, industrial action in Finland and the deployment of Indoor Group’s new ERP system have a negative impact on Indoor's net sales and operating profit. The Asko and Sotka chains both lost net sales and consequently profitability. According to the Federation of Finnish Special Commodity Trade ETU’s statistics, net sales in the furniture market has declined by approximately 8% year-on-year, and Indoor’s own development continued in the same direction throughout the quarter. Both chains continue to actively implement measures aimed at enhancing operational efficiency and improving profitability. These measures included increasing visitor volumes and sales, improving conversion rates, strengthening margins and maintaining careful cost control. The new ERP system was deployed in Sotka on 1 March 2024 and in Asko on 1 May 2024.

Nordic Rescue Group’s pro forma net sales and operating profit improved significantly year-on-year. The demand for rescue vehicles in Finland and Sweden has remained at a good level, and production capacity for 2024 has already been sold out.

During the financial period, we will continue our development efforts across our business areas, many of which are focusing on securing net sales and consequently operating profit as well as ensuring operational efficiency. We will continue to move forward with KH Group’s change in strategy as planned.

On 9 August 2024, the company updated its earlier guidance on net sales and operating profit for 2024. The downward revision 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.

Financial performance

KH Group, Pro forma key figures

The accounting principles applied in preparing the pro forma figures and reconciliations with the reported figures are presented below in the report under “Pro forma financial information”.

EUR million	4–6/2024	4–6/2023	1–6/2024	1–6/2023	1–12/2023
Net sales	89.3	93.2	167.4	187.3	376.9
Pro forma EBITDA (1)	7.6	8.3	15.8	16.9	42.0
EBITDA %	8.5 %	8.9 %	9.4 %	9.0 %	11.2 %
Pro forma operating profit (EBIT)	-0.3	0.2	-0.8	1.0	9.1
Operating profit (EBIT) %	-0.3 %	0.3 %	-0.4 %	0.5 %	2.4 %
Pro forma profit before taxes	-2.9	-3.1	-5.8	-4.9	-2.7

(1) EBITDA = operating profit + depreciation and amortisation