Sweden's Nobia Q3 EBIT misses estimates as supply chain, ramp-up costs weigh

Overview

• Sweden kitchen solutions maker's Q3 sales were flat yr/yr, meeting analyst expectations

• Q3 EBIT missed analyst expectations

• Company says profitability pressured by supply chain consolidation and ramp-up costs

Outlook

• Company expects transformation in Finland to continue weighing on sales in the short term

• Nobia to implement streamlined Nordic organisation and close non-Nordic support functions in Q4

• Company targets annual run-rate cost savings of SEK 150 mln from Q4 2027

Result Drivers

• FINLAND TRANSFORMATION - Co said negative organic growth was mainly driven by ongoing transformation in Finland, including winding down Novart business and investments in HTH brand

• SUPPLY CHAIN CONSOLIDATION - Co said profitability remained under pressure from Nobia Park ramp-up and unfinished supply chain consolidation

• GROUP RESTRUCTURING - Co said new Group structure and consolidation of business units aims to improve competitiveness and profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Nobia AB is SEK15.80, about 13.6% above its November 3 closing price of SEK13.91

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Nov 3 - Sweden's Embellence Q3 net sales rise 3% on DTC growth

• Nov 3 - Online fashion retailer Boozt Q3 revenue rises on wider assortment

• Nov 3 - Fortune Brands Q3 revenue misses estimates on execution issues

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)