Swedish kitchen furniture group Nobia, owner of UK brand Magnet, has reported a decline in Q3 sales.
According to its latest trading update for the third quarter 2025, total sales decreased to SEK 2,308m (2,478), corresponding to an organic decline of -3%.
Adjusted gross margin amounted to 38.8% (39.4), while SEK -103m (-185).
Adjusted gross margin increased to 38.6% (37.4), while profit after tax, total operations, amounted to SEK -1,922m (-83).
Items affecting comparability amounted to SEK -1,953m (-56), referring to non-cash, non-recurring impairment of the UK operations, largely related to intangible assets.
Net sales in the UK region amounted to SEK 1,046m (1,195). Net sales decreased organically by -7% (0), partly due to the effect of store closures and soft project market. The number of kitchen stores in the UK was 168, down from 172 a year ago.
The gross margin increased to 40.8% (38.0) and gross profit was SEK 427m (454). Operating profit was SEK -261m (-58). Adjusted operating profit amounted to SEK 2m (-49), including items affecting comparability of SEK -263m (-9), referring mainly to impairment of fixed assets. The adjusted operating profit was positively impacted by ongoing cost reductions, offset by unfavourable volume impact. The adjusted operating margin recovered to 0.2% (-4.1).
Kristoffer Ljungfelt, President & CEO, commented: “Driven by improved gross margins and disciplined cost management, we have continued to reinforce our underlying profitability and operating cash flow in the quarter. In addition, the inauguration of Nobia Park, our new production site in Sweden, represents an important milestone in advancing our strategic agenda.
“Organic net sales for the Group declined by -3% in the quarter, with the Nordic region at +1% and UK at -7%. On a like-for-like store basis, sales in the UK declined -4%. Retail sales continue to perform well as a result of improved market sentiment and a strong increase in store visits and design appointments. On the other hand, the continued low number of housing completions impacted project volumes negatively across all regions, particularly in the UK.
“In the Nordics, organic growth was +1% with an adjusted operating profit of SEK 99m (104) and an EBIT margin of 7.8% (8.1). Volumes in the Nordic project market declined by double digits on the back of a low number of housing completions in the quarter. However, consumer sales continue to show positive momentum, supporting improved average order values and gross margin enhancement.
“Following prolonged weak market conditions resulting in a slow financial recovery, Nobia announced a non-cash impairment of the UK operations of SEK 1.9bn, largely related to intangible assets. As the transformation to an asset-light model continues, Nobia is conducting further strategic reviews of the UK business.
“During the quarter, we closed the Nastola factory in Finland and successfully transferred production to the Ølgod factory in Denmark, marking another significant milestone on our consolidation roadmap. The relocation was implemented ahead of our long-term plan and Finland’s kitchen range is now entirely produced in Denmark.
“In October, we inaugurated Nobia Park, which will enable efficiency gains and an improved customer offering. The ramp-up of assembled kitchen production at Nobia Park continues to progress and remains a key priority for the Group. Nobia Park has also established its role as a central hub for component supply across the Nordic network, providing more than 30% of all components during the quarter.
“Although we anticipate continued softness in project market volumes, especially in the UK, we are encouraged by strengthening consumer sentiments. We will continue to capitalise on our strong brands and capture share in the growing consumer market, while executing on our strategy by ramping up Nobia Park, improving gross margins through sales of higher-value products, and maintaining strict cost discipline.”
