July-September 2024
January-September 2024
Significant events during and after the quarter
No significant events have occurred during or after the end of the period.
COMMENTS FROM THE CEO
Reflective of a continued challenging economy
Sales in the third quarter of 2024 amounted to 429 MSEK, a decrease of 4.4% compared to the previous year. During the period, we have adjusted the staffing in the factory in Mora, which has entailed one-off costs. Adjusted for one-off costs, we see an EBITA margin of 9.5% compared to 10.2% last year. Overall, a challenging third quarter and below our long-term targets, but in line with our previously communicated expectation of a continued challenging economic environment.
Revenue during the quarter was mainly at a low level in our Nordic home market, while internationally we have seen a more mixed development and, in some segments, have achieved good sales. We continue to see that it is generally sales to new construction and the more private renovation market in bathrooms and kitchens that are most challenging, while the professional renovation market is more stable. Lower inflationary pressures and expectations of lower interest costs have not yet had a clear impact on increased demand from our customers. Our assessment of a continued challenging economy remains and with an expectation that it will continue into 2025. In the longer term, we continue to see a good underlying need for our products in all countries and above all where there is a demand for attractive design, clear sustainability benefits and local service.
The gross profit percentage for the quarter is in line with previous periods, while it has been difficult to reduce other costs in line with the reduction in order intake. The entire organisation has worked actively to identify and realise cost improvements. The efficiency improvements have primarily focused on reducing product costs, increasing sales in warehouses and adapting staffing to the order situation at the factory in Mora. These initiatives help us to fend off the economic situation here and now, but also to develop our cost-efficiency in the long term, which is an important cornerstone of our strategy.
Finally, it is important to highlight that we are also gaining market share during this quarter in certain prioritised customer segments. In all our brands, we have products that are appreciated by our customers and a close local customer service. During this quarter, we continued this work by launching our brand new Mora Lynx product range, which combines modern design with several sustainability benefits for customers. We also introduced our first kitchen faucets with energy class A as part of our sustainability work. During the quarter, we opened our new Damixa Experience Centre in the Netherlands, an exciting new step to make us an even more interesting partner for our customers in Western Europe. All in all, these were important steps to continue to develop our customer collaboration and to be their first choice.