Ekornes QM Holding Group – Third quarter 2024 results

30 Oct 2024 10:33 CET

MAINTAINING RESILIENCE

Highlights

• Operating revenue of NOK 852 million, down 11% year-over-year on lower sales
volumes for all segments, although Stressless® and Svane® delivered a more
resilient performance than IMG
• Gross operating earnings (EBITDA) of NOK 115 million (174), including a net
unrealized loss on currency forward contracts versus a gain last year, partly
offset by reduced costs, price increases and a favourable quarterly product mix
• Net cash flow from operating activities of NOK 26 million (94), mainly reduced
on lower released working capital than last year
• Strong financial position and sound liquidity, with a cash position of NOK 832
million as at 30 September 2024 (717)
• Order intake of NOK 889 million, up 1% year-over-year, leaving the order
reserve at NOK 480 million as at 30 September 2024 (637) and up from NOK 451
million in the second quarter
• Assembly facility in Morganton, North Carolina temporarily closed from flood
damages with some impact expected to fourth quarter revenues as certain sofa
deliveries are delayed into 2025

The furniture industry remains impacted by reduced spending on household items
and furniture as high living costs have reduced consumers' disposable income. In
these slow market conditions, Ekornes’ revenue so far this year has declined
versus last year. However, third quarter sales varied widely between regions,
with Norway and the UK delivering solid performances while the rest of Europe
was slower. Order intake was also slightly up from both last year and the
previous quarter, where particularly September saw an uptick. The trend has
continued in the first weeks of the fourth quarter, indicating a slight
improvement despite a continued challenging market outlook.

Facing softer market conditions, Ekornes has adapted through streamlining of the
organization, stringent cost control and price adjustments. Combined with a
favourable product mix driven by targeted marketing campaigns focusing on
high-margin products such as traditional Stressless® recliners, profitability
has improved from the first half of 2024.

“With over 90 years of innovation and industrial growth, Ekornes continues to
demonstrate a resilient business model also in times with softer market
conditions. As markets for furniture and household goods remain volatile, our
strong brands and extensive global presence have delivered a robust performance.
While optimizing organizational structures and maximizing supply chain
efficiency, we are committed to developing our unique brands and delivering
attractive products with exquisite quality to consumers worldwide”, says Tine
Hammernes Leopold, CEO of Ekornes.

Ekornes has a solid financial position, where profitability has supported the
leverage ratio declining in line with the company’s bond covenant. Heading into
the fourth quarter, the Group expects a continued positive trend for
profitability supported by efficient operations and continued cost control.

The complete financial statements for the third quarter for Ekornes QM Holding
Group is attached and is also available at www.ekornes.com/en/investorrelations

The company will host a conference call for investors, analysts and other
stakeholders on 31 October at 8:00 a.m. CET.

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:
Fredrik Ødegård Nilsen, EVP and CFO Ekornes
fon@ekornes.com
Tel: +47 48 09 00 96

Kjetil Iversen, VP Global Finance Ekornes
kjetil.iversen@ekornes.com
Tel: +47 90 60 24 54


About Ekornes QM Holding Group
Ekornes QM Holding AS was founded in 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 Ekornes
Group is the only operational part of the Ekornes QM Holding Group. Ekornes was
estabslihed in 1934 and is the largest furniture producer in Norway, owning 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
eight factories, five of which are in Norway, one in the USA, one in Thailand
and one in Lithuania. Ekornes sells its products over large parts of the world,
either through its own sales companies or via importers.

Norwegian ultimate parent company Ekornes QM Holding AS is a subsidiary of Qumei
Home Furnishings Group. Qumei Group owns 94,12% of the shares in Qumei Runto S.à
r.l and Hillhouse investment owns 5,88% of the shares in Qumei Runto S.à.r.l.
Qumei Runto S.à.r.l. owns 100% of the shares in Ekornes QM Holding AS.

More information:
Access the news on Oslo Bors NewsWeb site

630720_Ekornes QM Holding Group - Financial statements for the third quarter 2024.pdf