Continued low activity in new construction but more stable renovationsector
Kährs' order intake decreased by 14 per cent in the second quarter compared to the previous year, driven by a continued weak project market, particularly within new construction. The renovation market has meanwhile stabilized somewhat, although geopolitical tensions are mitigating activity both in Europe and the US.
The efficiency program for cost savings and cash flow improvements is progressing. Production optimization is in line with plans for SEK 45 million in annual savings; more of our European flooring production is now in Sweden. Streamlining the fixed cost base will reduce overhead costs by more than SEK 20 million during 2025. Working capital decreased by SEK 185 million compared to the previous year, mainly through inventory reductions.
Second Quarter 2025
- Sales amounted to SEK 508 million (671), which was a decrease of -24 per cent. Organic change adjusted for currency was -15 per cent
- Operating EBITA amounted to SEK 17 million (34), corresponding to an operating EBITA margin of 3.4 per cent (5.1)
- Operating profit totaled SEK 12 million (-40), corresponding to an operating margin of 2.4 per cent (-6.0)
- Profit/loss for the period amounted to SEK -26 million (-76)
- Cash flow from operating activities totaled SEK -39 million (-28)
January-June 2025
- Sales amounted to SEK 1,049 million (1,314), which was a decrease of -20 per cent. Organic change adjusted for currency was -11 per cent
- Operating EBITA amounted to SEK 39 million (73), corresponding to an operating EBITA margin of 3.7 per cent (5.6)
- Operating profit totaled SEK 30 million (-6), corresponding to an operating margin of 2.9 per cent (-0.5)
- Profit/loss for the period amounted to SEK -26 million (-88)
- Cash flow from operating activities totaled SEK 2 million (8)
President and CEO Johan Magnusson comments:
Kährs expands in the consumer segment and gains recognition in the USA
Kährs reports growth in consumer sales in both Europe and the USA during the second quarter of 2025, partially offsetting a continued very weak project market and uncertainty regarding new tariffs.
The strongest growth occurs in the USA through Kährs' direct distribution model and in Germany through a strong offering to specialty flooring retailers. At the same time, sales to inventory-holding customers are weakening due to increased trade uncertainty.
Kährs strengthens its competitiveness by increasing production in Europe and North America, while also launching a new cost-efficient product platform. The efficiency programs are already delivering annual savings of over SEK 65 million, with an additional SEK 100 million freed up through inventory optimization.
The company continues to impress in the USA and has, for the fourth time in five years, been named the winner of the FCN Award of Excellence as Supplier of the Year for hardwood flooring.
Despite uncertain market conditions, Kährs sees long-term growth opportunities in home renovations, driven by innovation, digitalization, and sustainable products.
For further information, please contact:
Johan Magnusson, President and CEO
Phone: +46 70?540 13 96
johan.magnusson@kahrs.com
Andreas Larsson, CFO
Phone: +46 70 242 03 65
andreas.larsson@kahrs.com
About Kährs BondCo AB (publ)
Kährs BondCo AB (publ) is a leading manufacturer and distributor of flooring with the aim of providing customer experiences beyond expectations. Kährs' innovations have shaped the industry throughout its history and the company is dedicated to offering flooring solutions for every room, environment and need. The company delivers sustainable and durable flooring solutions to approx. 70 countries, being a market leader in hardwood flooring in Sweden and Finland and having strong positions in other key markets, such as Norway, the UK, US, Germany, and Switzerland. The Group has 751 employees and annual sales of SEK 2.1 billion www.kahrsgroup.com
