April-June 2024

• Net sales were SEK 491.7 MSEK (506.6), a decrease of 2.9% compared to the equivalent period in 2023. Organic growth was -3.4% for the period.
• EBITA was 54.1 MSEK (64.5), an EBITA margin of 11.0% (12.7). The previous year was impacted by one-off costs of 1.3 MSEK regarding an efficiency program in Sweden.
• Earnings per share were 0.80 SEK (0.93).
• Cash flow after investing activities was 58.5 MSEK (-3.4).

January-June 2024

• Net sales were 985.2 MSEK (1,039.8), a decrease of 5.3% compared to the equivalent period in 2023. Organic growth was -5.7%.
• EBITA was 107.4 MSEK (143.0), an EBITA margin of 10.9% (13.8). The previous year was impacted by one-off costs of 2.9 MSEK regarding an efficiency program in Sweden.
• Earnings per share were 1.47 SEK (2.18).
• Cash flow after investing activities was 96.8 MSEK (36.4).

Significant events during and after the quarter
No significant events have occurred during or after the end of the period.


COMMENTS FROM THE CEO

A continued challenging market situation

We summarise the second quarter of 2024 and note that sales amounted to 492 MSEK with an EBITA margin of 11.0%. Compared to the corresponding quarter in 2023, this means that sales decreased by 2.9% and that the EBITA margin reduced from 12.7%. In the quarter, we can also note that cash flow after investing activities continued to develop positively. All in all, a good resultconsidering the challenging economic situation for our industry.

Demand in the construction and housing markets continued to be weaker during the quarter. In principle, all of our main markets indicate relatively low activity levels, which consequently affects demand for our products. However, our assessment is that our brands have a strong position with customers and that we are succeeding in gaining market share in several segments. We see this above all where our brands have a well-established position and products are adapted to the professional renovation market. However, our assessment for the coming quarters is that we will continue to face a challenging market situation. In the long term, we see a great underlying need to both renovate and build new bathrooms and kitchens, which should benefit from signals of lower interest rates and inflation.

We continue to have a clear focus on costs throughout the organisation based on the current market situation and our assessment of the coming quarters. The lower EBITA margin in the quarter is due to cost increases in various areas for reasons including inflationand certain investments in marketing, product range and skills development. During the quarter, we also noted that material and transport prices have started to increase, especially for copper and sea transport. Throughout the organisation, we have a very good understanding of costs and control, which helps us to make good decisions in the short and long term.

All our brands have products that are well positioned based on customer requirements and needs in our different segments and regions. Important keywords in our strategy are sustainable products with attractive design and good local service. We see clear evidence that this strategy helps us in a challenging market situation and that we are well positioned for the future. During the quarter, we have therefore also continued to strengthen our brands, including by launching the next generation of the Mora MMIX product series for the Nordic market and with a strong focus on lead-free solutions and resource-efficient water flows in our taps. During the spring, we also launched the brand new product series Hotbath ACE, which, with modern colours and design language, is being rolled out at full speed in bathroom stores in Western Europe. In a challenging market situation, it is of course extra gratifying that we can invest in the future to continue to be a strong partner to our various customers.