Nobia AB: Interim report January-June 2016

Regulatory News:

April-June 2016

• Net sales for the second quarter amounted to SEK 3,667 million (3,575).

• Organic growth was 4 per cent (7). Additionally, net sales were positively impacted by acquisitions and negatively impacted by currency effects and a decline in sales for Hygena.

• Operating profit amounted to SEK 414 million (400), corresponding to an operating margin of 11.3 per cent (11.2).

• Currency losses had an impact of approximately SEK 50 million, of which a negative SEK 20 million comprised translation effects and a negative SEK 30 million transaction effects.

• Profit after tax amounted to SEK 302 million (289), corresponding to earnings per share of SEK 1.80 (1.72).

• Operating cash flow amounted to SEK 238 million (170).

Consolidated net sales, earnings and cash flow

The market in total is deemed to have improved during the second quarter compared with the year-earlier period.

Sales increased organically 4 per cent (7). Currency losses of SEK 182 million (gains: 247) affected sales for the quarter. Commodore and CIE, which were consolidated during the fourth quarter of 2015, generated sales of SEK 164 million during the second quarter.

The gross margin amounted to 40.4 per cent (41.1), negatively affected by currency effects and by Commodore and CIE having a structurally lower gross margin.

Operating profit improved primarily as a result of higher sales volumes and lower material prices, but also due to the earnings contribution from Commodore and CIE.

The return on operating capital including items affecting comparability was 25.5 per cent over the past twelve-month period (Jan-Dec 2015: 26.9).

The return on shareholders’ equity including items affecting comparability was 23.9 per cent over the past twelve-month period (Jan-Dec 2015: 24.1).

Operating cash flow increased mainly as a result of a positive change in working capital and lower investment compared with last year.

Comments from the CEO

"All regions report sales growth for the second quarter and profitability strengthened in the Nordic and UK regions. The operating margin for the past twelve months amounted to 9.5 per cent. We are focusing intensively on achieving our target of a 10 per cent operating margin in 2016. The uncertainty has however increased due to the result of the referendum in the UK. We are monitoring the development very closely and are ready to take steps to strengthen profitability should this be necessary,” says President and CEO Morten Falkenberg.

This information was brought to you by Cision http://news.cision.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20160720005599/en/