KH Group Plc’s Business Review January–March2024: Focus on business profitability
07 Maggio 2024 - 7:00AM
UK Regulatory
KH Group Plc’s Business Review January–March2024: Focus on business
profitability
KH Group Plc
Stock Exchange Release 7 May 2024 at 8.00 am EEST
KH Group Plc’s Business Review January–March
2024: Focus on business
profitability
This is the summary of the Business Review for January–March
2024. The full Half-Year Report is attached to this release and is
also available on the company’s website at
www.khgroup.com.
KH Group, January–March 2024 pro
forma
- Net sales amounted to EUR 84.2 (100.2) million.
- Operating profit was EUR -0.3 (1.0) million.
- KH-Koneet’s net sales and operating profit decreased
considerably year-on-year.
- Indoor Group’s net sales decreased significantly. Operating
profit, including the capital gain of EUR 3.7 million from the
Estonian real estate sale transaction, was higher than in the
comparison period.
- HTJ’s net sales were at the same level as in the comparison
period but operating profit decreased.
- NRG’s net sales and operating profit significantly increased
year-on-year.
- The Group’s cash and cash equivalents amounted to EUR 8.1
million at the end of the review period.
KH Group, January–March 2024
IFRS
- Net sales amounted to EUR 84.2 (-) million. The figure for the
comparison period only includes the parent company’s net
sales.
- Operating profit was EUR -0.7 (-2.8) million.
- Net profit for the period was EUR -3.2 (-2.4) million.
- Earnings per share (undiluted and diluted) were EUR -0.05
(-0.04).
- Equity per share at the end of the review period was EUR 1.30
(1.42).
- Return on equity for rolling 12 months was -19.2% (-9.5%).
- Gearing at the end of the review period was 225.3%
(10.5%).
- Gearing excluding lease liabilities was 141.6%
(10.4%).
CEO Lauri Veijalainen:
“Our consolidated pro forma net sales and operating profit
significantly declined year-on-year. The extremely challenging
market situation, uncertainty, the political strikes that disrupted
the Finnish labour market and business, and the deployment of
Indoor Group’s ERP system had a negative impact on consolidated net
sales.
KH-Koneet’s net sales decreased very significantly in both
operating countries. As a result, operating profit also turned
negative. In terms of net sales and operating profit, operations in
Sweden almost reached the level of operations in Finland.
Indoor Group’s first quarter was weak. The Asko
and Sotka chains lost net sales and consequently profitability.
According to the Federation of Finnish Special Commodity Trade
ETU’s statistics, net sales in the furniture market in January 2024
fell by 9% year-on-year, and Indoor’s own development continued in
the same direction throughout the quarter. Both chains continue to
actively implement measures aimed at enhancing operational
efficiency and improving profitability. These measures included
increasing visitor volumes and sales, improving conversion rates,
strengthening margins and maintaining careful cost control. The new
ERP system was deployed on 1 March 2024 and had a negative impact
on net sales and operating profit. By the end of March, Indoor
Group discontinued its operations in Estonia. As part of this, the
company successfully sold its property in Estonia, generating a
capital gain of EUR 3.7 million. For a long time, the Estonian
operations had operated at loss.
In a declining market, HTJ managed to maintain
net sales at the same level as in the comparison period, but
operating profit decreased. The business area’s moderate net sales
and operating profit are explained by an increased project
portfolio and the acquisitions made in recent years.
Nordic Rescue Group’s pro forma net sales and
operating profit significantly improved year-on-year. The demand
for rescue vehicles in Finland and Sweden has remained at a good
level, and production capacity for 2024 has already been sold
out.
During the financial period, we will continue
our development efforts in our business areas, many of which are
focusing on securing net sales and consequently operating profit as
well as ensuring operational efficiency. We will continue to move
forward with KH Group’s change in strategy as planned.
The company updated on 30 April 2024 its earlier
guidance on net sales and operating profit for 2024. This is due to
general economic uncertainty, the very challenging market situation
and more cautious purchasing behaviour by consumers.
KH Group estimates, with the current Group
structure, to reach net sales of EUR 400–420 million and operating
profit of EUR 12–16 million in 2024, including the operating profit
from Indoor Group’s Estonian real estate sale transaction.”
Events after th review period
After the Annual General Meeting of the company held on 24 April
2024, the parties to the KH-Koneet shareholder agreement have
informed the parent company that they are exercising share put
options. According to the agreement, minority shareholders have the
right to sell 50% of their current holding in KH-Koneet Group Oy
during 2024. The redemption of shares held by minority shareholders
will be completed by June 2024 and amounts to approximately EUR 2.9
million. The redemption will increase the parent company’s holding
in KH-Koneet Group Oy to 95.1%. The remaining 4.9% minority
interest can be redeemed in 2025, as defined in the shareholder
agreement, and its fair value based on the figures of the financial
statements of 31 December 2023 was EUR 3.4 million.
The parent company’s financing agreement was renewed in April.
The company has signed a new loan amounting to EUR 5.1 million. EUR
2.9 million of the loan proceeds will be used for a redemption of
shares in KH-Koneet Group Oy and EUR 0.5 million for an additional
investment in Nordic Rescue Group Oy.
Beginning of May, the new ERP system was successfully
implemented at Indoor Group’s Asko stores.
Future outlook
KH Group’s medium-term objective is to become an
industrial group built around the KH-Koneet business and to divest
other business areas in line with previous strategy. At the same
time, active developments will continue regarding other business
areas. Exit planning and the assessment of exit opportunities for
the other business areas will also continue.
In the 2023 Financial Statements Release
published on 21 March 2024, the company estimated net sales of EUR
400–420 million and operating profit of EUR 14–16 million for the
financial year 2024. The guidance did not include the operating
profit of approximately EUR 3.7 million from Indoor Group’s real
estate sale in Estonia, which the company announced on 21 March
2024 at 12 noon.
The company updated on 30 April 2024 its earlier
guidance on net sales and operating profit for 2024. KH Group
estimates, with the current Group structure, to reach net sales of
EUR 400–420 million and operating profit of EUR 12–16 million in
2024, including the operating profit from the real estate sale in
Estonia.
KH GROUP PLC
Lauri Veijalainen
CEO
FURTHER INFORMATION:
CEO Lauri Veijalainen, tel. +358 46 876 1648
DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.khgroup.com
KH Group Plc is a conglomerate with four
business areas: KH-Koneet, Indoor Group, Nordic Rescue Group and
HTJ. All of our business areas are leading players in their sectors
in B2B products and services and consumer trade. Our objective is
to focus on the business of the earth-moving machinery supplier
KH-Koneet. Other business areas will be further developed and then
divested in line with the Group’s investment strategy. KH Group’s
share is listed on Nasdaq Helsinki.
- KH Group Plc - Business Review_Q1_2024
Grafico Azioni Kh Group Oyj (LSE:0NQK)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Kh Group Oyj (LSE:0NQK)
Storico
Da Mag 2023 a Mag 2024