Ekornes QM Holding Group – First quarter 2025 results

29 Apr 2025 12:33 CEST

Q1 2025 Highlights (Q1 2024 in brackets)
• Operating revenues of NOK 1 114 million, up 14% year-over-year and 9%
quarter-on-quarter on higher volumes

• Gross operating earnings (EBITDA) of NOK 216 million (37), with the
improvement driven by increased capacity utilization, reduced costs and
unrealized gains on currency forward contracts

• Net cash flow from operating activities of NOK 15 million (59), with the
reduction mainly reflecting increased trade receivables

• Solid financial position, with cash of NOK 873 million as at 31 March 2025
(865)

• Order intake of NOK 1 115 million, up 3% year-over-year, leaving the order
reserve at NOK 574 million as at 31 March 2025 (563), slightly down from NOK 585
million at the end of 2024

STRONG QUARTER BUT WITH AN UNCERTAIN OUTLOOK
Ekornes entered 2025 with a healthy order reserve and continued the positive
sales momentum from 2024. This provided a strong foundation for the first
quarter, where revenues grew from higher delivered volumes and a continued
positive development in demand.

While production and deliveries picked up, Ekornes retained strict cost control
and saw material costs declining. Combined with operational leverage and
benefits from initiatives implemented over the past years, profitability
continued to improve.

“We continue to demonstrate resilience with strong operational performance in
the quarter. However, the recently imposed US tariffs have reduced visibility
significantly with heightened regulatory risk and uncertainty while increasing
margin pressure across the furniture industry. In response, we expect to
implement price increases and leverage our operational flexibility to mitigate
risk”, says Tine Hammernes Leopold, CEO of Ekornes.

Stressless® accounts for over 80% of Ekornes’ sales in the US and the Group
expects to pass on most of the costs incurred by tariffs by utilizing the
premium position and pricing power the brand holds.

Amidst unpredictable market conditions, Ekornes has a strong financial position
with solid liquidity. The company has deleveraged over recent years in line with
the bond covenant and is positioned to stay well within the maximum allowance
going forward.

Meanwhile, the strategic transformation of Ekornes remains firm. The Group is
building a more competitive and agile organization that can deliver sustainable
growth, increased efficiency while remaining the customer furniture favourite
for Nordic comfort, quality and style.

The complete financial statements for the first quarter 2025 for Ekornes QM
Holding Group is attached hereto 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 30 April 2025 at 0800 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

644713_Ekornes QM Holding Group - Financial statements for the first quarter 2025.pdf