Magnet owner expects lower sales in third quarter

Swedish kitchen furniture group Nobia, owner of UK brand Magnet, has issued a lower earnings warning ahead of its Q3 update due to supply chain disruptions in the Nordics.

According to its latest trading update, group net sales for the third quarter are expected to amount to SEK 3,479m, down from SEK 3,216m in Q3 2021, while operating profit for the group is expected to result at SEK 77m, down from SEK 228m against the same period last year.

In a statement, the group said: “Nobia’s earnings have been negatively impacted by continued supply chain disruptions in the Nordics. Cost inflation, component availability and extraordinary cost for reduction of order backlog, predominantly in the plant in Tidaholm Sweden, has a had a more significant impact than expected, resulting in an operating profit in the Nordic region of SEK 97m in the third quarter (SEK 196m in Q3 2021).

“The cost for supply chain disruptions is expected to improve in Q4 and further efforts are being made to transfer parts of the production to the new factory in Jönköping already by Q1 2023.”

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