Ekornes QM Holding Group – First quarter 2022 results

27 Apr 2022 11:12 CEST

HIGHER THROUGHPUT AS MARKETS NORMALIZE

Highlights

• Continued strong momentum across markets and segments drove Ekornes’ revenues
and order reserve to record levels
• Q1 2022 operating revenue increased 43% to NOK 1 487 million
• Strong sales in all markets lifted underlying sales revenue for Stressless®
49% to NOK 1 106 million, IMG revenue 36% to NOK 297 million and Svane® revenue
5% to NOK 85 million
• Q1 2022 EBIT ended at NOK 234 million (162), driven by higher sales and
improved capacity utilization
• Net cash flow from operations was positive NOK 75 million for the quarter
(-17)
• Q1 order receipts increased 10% from Q4 2021 to NOK 1 383 million
• Order reserve was slightly down during the quarter to NOK 1 260 million

The positive market momentum from 2021 continued into the first quarter of 2022
with persisting high demand for Ekornes’ products and high-capacity utilization.
This was reflected in record quarterly revenues and earnings. Stressless®
experienced strong growth in key markets, particularly in Central Europe and the
UK, while IMG continued its solid performance with a revenue increase of 36%
compared to the first quarter of 2021.

“The ability to supply relevant products with short delivery times has been
vital for the performance of Ekornes throughout the pandemic. Our solid
distribution network combined with favourable diversification of supply and
market demand have enabled us to deliver our ambitions and to strengthen our
position in all our main markets, says Roger Lunde, CEO in Ekornes.

Price inflation on input factors and logistical constraints have increased
overall costs for Ekornes. During 2021, the company took actions to address the
increased cost base, mainly through price increases. Given the continued
constrained market situation, however, raw materials and distribution capacity
costs remain uncertain factors and may be subject to further increases.

Ekornes has continuous focus on operational efficiency. The company has
initiated a plan to reorganize operations, including concentration of automated,
labour-intensive and other specialized processes to production units with
comparative advantages, across segments. The company is considering
reorganising, upgrading and expanding current facilities to further optimize
production processes.

Following the extension of existing bank loan facilities, Ekornes has maintained
its financial solidity and flexibility.

Ekornes is well positioned to capitalize on future market opportunities as a
leading global premium furniture manufacturer through continued development of
new products, strengthened customer collaboration and increased penetration of
underdeveloped markets, supported by rebuild and extension of production
capacity.

The complete “Financial statements for the first quarter 2022” for Ekornes QM
Holding Group is attached and is also available at
www.ekornes.com/en/investor-relations/reports.

The company will host a conference call for investors, analysts and other
stakeholders on 28 April 2022 at 08.00 CEST.

To join the event, use one of the following access numbers:
NO: +47 2195 6342
DK: +45 7876 8490
UK: +44 203 769 6819
US: +1 646 787 0157
SE: +46 406 82 0620
CH: +86 10 8783 3196
Hong Kong: +852 3 018 4836

Participant code: 676485

For more information, please contact:
Roger Lunde, CEO Ekornes AS
roger.lunde@ekornes.com
Tel: +47 70 25 52 00

Fredrik Ødegård Nilsen, CFO Ekornes AS
fon@ekornes.com
Tel: +47 70 25 52 00

About Ekornes QM Holding Group
Ekornes QM Holding AS was founded 4 January 2018 with the purpose of acquiring
the Ekornes Group. In May 2018, an offer was made to purchase the shares of all
Ekornes shareholders. The share purchase was completed in August 2018 and the
Group was delisted from the Oslo Stock Exchange in October 2018. The Norwegian
ultimate parent company Ekornes QM Holding AS is a wholly owned subsidiary of
Qumei Home Furnishing Group. Ekornes QM Holding AS owns 100% of the shares in
Ekornes AS.

The Ekornes Group is the only operational part of the Ekornes QM Holding Group.
Ekornes is the largest furniture producer in Norway and owns the brand names
Ekornes®, Stressless®, Svane® and IMG. Stressless® is one of the world’s most
well-known furniture brands. Production takes place at the Group’s ten
factories, five of which are in Norway, one in the USA, one in Thailand, one in
Lithuania and two in Vietnam. Ekornes sells its products over large parts of the
world, either through its own sales companies or via importers.

More information:
Access the news on Oslo Bors NewsWeb site

560146_Ekornes QM Holding Group - Financial statements for the first quarter 2022.pdf