Kährs shows strength in a challenging market - trend shift with increased profitability and growth in Europe
Kährs continues to demonstrate resilience and strength in a challenging global market environment. While order intake decreased slightly during the third quarter, solid growth in the European consumer segment and strong momentum in the company's direct distribution model in the US underscore the continued appreciation for Kährs' brand and product offering.
Despite lower sales overall, signs of stabilisation in Europe's renovation market provide a positive outlook. The project market for new construction remains difficult, particularly in the Nordics and the US. Geopolitical uncertainty - especially related to customs and trade tariffs - affected selected markets and channels. Even so, Kährs' ability to adapt quickly continues to be a competitive advantage. Profitability is now improving, confirming the effectiveness of recent efficiency measures.
Third Quarter 2025
- Sales amounted to SEK 460 million (533), which was a decrease of -14 per cent. Organic change adjusted for currency was -4 per cent
- Operating EBITA amounted to SEK 8 million (-4), corresponding to an operating EBITA margin of 1.8 per cent (-0.7)
- Operating result totalled SEK 4 million (-19), corresponding to an operating margin of 0.9 per cent (-3.6)
- The result for the period amounted to SEK -31 million (-44)
- Cash flow from operating activities totalled SEK -36 million (12)
January-September 2025
- Sales amounted to SEK 1,509 million (1,846), which was a decrease of -18 per cent. Organic change adjusted for currency was -9 per cent
- Operating EBITA amounted to SEK 47 million (69), corresponding to an operating EBITA margin of 3.1 per cent (3.7)
- Operating result totalled SEK 34 million (-25), corresponding to an operating margin of 2.3 per cent (-1.4)
- The result for the period amounted to SEK -57 million (-132)
- Cash flow from operating activities totalled SEK -34 million (20)
President and CEO Johan Magnusson comments:
Kährs strengthens its profitability and gains recognition for its environmental work
Kährs showed that the company remains strong, although the market is challenging, by growing in retail in Europe and with our direct distribution model in the US. Again, proving that our products and offers are appreciated by customers. At the same time, the project market for new construction continues to be weak, especially in the Nordic countries and the US.
It is pleasing to see that profitability is turning upwards, even though geopolitical uncertainty affected certain markets and channels in the quarter. This confirms that Kährs' efficiency measures are yielding results, and that we are on the right path towards increased stability and stronger profitability.
During the quarter, Kährs launched a new digital retail platform to strengthen our relationship with customers by offering premium service and improved accessibility. In parallel we are also investing in the digital consumer journey to support sales growth within retail.
Kährs also continued to expand its product portfolio with new value-driven launches. The Kährs Life concept was strengthened with a new product series, while in the US, the company introduced a locally manufactured premium range within the Kährs LT concept.
Kährs continues to be recognized for its environmental efforts, and we are proud to be the winner of the 2025 GreenStep International Award, highlighting our commitment to sustainability and innovation.
Despite the dampening effect in the short term from geopolitical uncertainty, the underlying demand for flooring remains strong. Kährs sees long-term growth opportunities in both renovation and in the market for new construction, driven by innovation, digitalization, and sustainable products.
Kährs' strong customer relationships, operational efficiency and premium product portfolio provides a solid platform for improved stability and long-term profitability.
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 745 employees and annual sales of SEK 2.1 billion. www.kahrsgroup.com