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– Profitability was also good this quarter, with a good operating margin. Stressless in Central Europe and Scandinavia is offset by the continued development of Stressless and IMG (Ekornes' subsidiary) in the North American markets through a strengthened commercial organization and improved distribution, as well as a growing market. underlying solid consumption. Overall, we are satisfied with the quarter, says CEO Olav Holst-Dyrnes.
Ekornes Group's operating revenues in the second quarter of 2018 amounted to 797.8 million, compared with 762.5 million in the second quarter of 2017. Adjusted operating income for the quarter last NOK 102.0 million. Operating margins reached 17.3% for the quarter, compared with 9.3% for the same period last year
The increase in revenues is mainly due to changes in foreign exchange and foreign exchange rates in the Stressless sector. The underlying business figure in Stressless is stable compared to the same period in 2017.
Weak development in Europe
Stressless, which is the largest business area of ?? Ekornes, had a satisfactory start in 2018 with strong growth in North America and Asia. At the same time, it is still demanding in Central and Southern Europe and Scandinavia, and the work on promotional initiatives takes time.
IMG is well developed in the North American and Asian markets, but progress in Europe has been weak. Success in the European market is important to achieve the goals of a doubling of sales.
The group plans a new plant in Lithuania to strengthen the presence of IMG in Europe, as well as a better distribution and a wider product range with greater product width and depth.
– The positive development of Stressless and IMG in North America is expected to continue. At the same time, product innovation, the development of sales and distribution networks and the pursuit of cost reductions will be crucial for growth and profitability, concludes CEO Olav Holst-Dyrnes
