Brief: Nobia Q2 Operating Profit Up At SEK 391 Million

Nobia AB

19/07/2019 12:04

July 19 (Reuters) - Nobia AB  NOBI.ST :
    * INTERIM REPORT JANUARY - JUNE 2019
    * Q2 NET SALES SEK 3.75 BILLION VERSUS SEK 3.50 BILLION YEAR
AGO
    * Q2 ORGANIC GROWTH -1 % VERSUS NEGATIVE 2% YEAR AGO
    * Q2 OPERATING PROFIT AMOUNTED TO SEK 391M (387)
    * PERFORMANCE IN NORDIC RETAIL COUPLED WITH IMPROVEMENTS IN
OUR
SUPPLY CHAIN MITIGATED SOFTER MARKET CONDITIONS AND INCREASING
INFLATIONARY PRESSURE
    * UK MARKET CONTINUES TO BE SOFT ON BACK OF BREXIT
UNCERTAINTY,
WITH RETAIL SEGMENT REMAINING CHALLENGING IN TERMS OF BOTH PRICE
AND VOLUME.
    * WITH AN ORGANIC GROWTH IN UK OF -1% WE ESTIMATE TO HAVE
CAPTURED
SHARES IN A DECLINING MARKET
    * DELIVERIES TO OUR LARGER PROJECTS IN LONDON ARE ALSO
PROGRESSING
WELL WHICH SHOULD GIVE TAILWIND GOING INTO SECOND HALF OF 2019
    * WE BELIEVE HIGH MARKET VOLATILITY AND INFLATIONARY
PRESSURE IS
LIKELY TO CONTINUE, ESPECIALLY ON BACK OF BREXIT
    * HOWEVER, WE ARE CONTINUING TO GROW SALES THROUGH OTHER
CHANNELS,
INCLUDING MAGNET TRADE
    * HIGH MARKET VOLATILITY AND INFLATIONARY PRESSURE IS LIKELY
TO
CONTINUE, ESPECIALLY ON BACK OF BREXIT
    * OUR RECENT TREND IN NORDIC RETAIL AND UK TRADE COUPLED
WITH
IMPROVED SUPPLY CHAIN PERFORMANCE PUTS US IN A FAVOURABLE
POSITION TO GROW MARKET SHARES AND IMPROVE PROFITABILITY
    * WE ARE IMPLEMENTING PRICE INCREASES AND COST OUT
INITIATIVES TO
OFFSET MOUNTING INFLATIONARY PRESSURE
    * IN CENTRAL EUROPE OUR LATEST ACQUISITION BRIBUS IS
PERFORMING
ABOVE EXPECTATIONS AND WE ARE NOW INVESTING IN SUPPLY CHAIN TO
CATER FOR PROFITABLE GROWTH
    * Q2 PROFIT AFTER TAX AMOUNTED TO SEK 290M (297)

Source text for Eikon:  ID:nWkr15QJ5H 
Further company coverage:  NOBI.ST 

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