Ekornes QM Holding Group – Fourth quarter 2024 results

26 Feb 2025 09:00 CET

DEMAND GRADUALLY RECOVERING

Highlights
(Fourth quarter 2023 in brackets)

• Operating revenue of NOK 1 018 million, down 9% year-over-year on lower
volumes and capacity, but up 19% from the third quarter in line with seasonality

• Gross operating earnings (EBITDA) of NOK 183 million (143), with the
improvement driven by increased prices, lower costs, currency effects and a gain
from the sale of the Vietnam facility

• Net cash flow from operating activities of NOK 79 million (155), with higher
earnings more than offset by increased working capital versus large inventory
reductions last year

• Solid financial position, with cash of NOK 910 million as at 31 December 2024
(835)

• Strong order intake of NOK 1 154 million, up 19% year-over-year, leaving the
order reserve at NOK 585 million as at 31 December 2024 (468), up from NOK 480
million at the end of the third quarter

Activity picked up in the fourth quarter in line with seasonal patterns, with
order intake and reserve both increasing. Positive sales developments have
continued into 2025, indicating a gradual market recovery. Nevertheless, the
furniture market remains volatile, with significant sales variations across
regions. During the fourth quarter, the Nordic markets were strong with North
America also delivering satisfactory performance, while the rest of Europe
remained weaker affected by a slower economy.

“Demonstrating strength amidst challenging market conditions and volatile sales,
we have consistently executed a broad range of operational and financial
initiatives in recent years aimed at improving our financial position. These
measures, including streamlining of the organization, stringent cost control and
price adjustments, have resulted in improved profitability during 2024. We enter
2025 in a solid position and increased flexibility to continue adapting to
market conditions while maintaining profitability”, says Tine Hammernes Leopold,
CEO of Ekornes.

Following the US presidential election and ambiguity around potential new
tariffs, there is limited visibility and abnormally high uncertainty regarding
future market development for the furniture industry, with some retailers
demonstrating increased caution on inventory buildup. Although outcomes are
unclear, Ekornes’ vast international footprint and comprehensive sourcing
network gives flexibility in its supply chain and operating model to adapt to
potential changes.

Ekornes’ strategic priorities centre on continuous development of its unique
brands and a commitment to deliver smart and stylish seating solutions of
exquisite quality to consumers worldwide. As such, with the goal of ensuring
long-term competitiveness and continued organizational modernization,
investments are expected to gradually increase from today’s temporarily very low
levels. Ekornes is also focusing on elevating customer appeal by upgrading
point-of-sale experiences and strengthening consumer-oriented market
initiatives. Combined with continuous optimization of operations and supply
chains, this will support improved margins in the long term.

The complete financial statements for the fourth quarter 2024 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 27 February at 9:00 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 Group Finance
kjetil.iversen@ekornes.com
Tel: +47 90 60 24 54


About Ekornes QM Holding Group
Ekornes QM Holding AS was founded in 2018 in connection with the delisting of
Ekornes from the Oslo Stock Exchange. The Ekornes Group is the only operational
part of the Ekornes QM Holding Group. Ekornes was established 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 USA, one in Thailand and one in Lithuania. Ekornes
sells its products in more than 4,000 outlets in 40 countries globally, either
through 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

639705_Ekornes QM Holding Group - Financial statements for the fourth quarter 2024.pdf