Kährs Group (Malmö, Sweden) reported a consolidated profit decline of 68 percent in the first quarter of 2018, falling from $5.0 million during the same period last year to $1.5 million ($45 million to $14 million SEK).
The company’s net sales increased 7 percent during the quarter, growing from $88.4 million to $94.2 million. Kahrs Group President and CEO Christer Persson attributed much of the sales growth to the Europe market. Sales in other markets declined, however, and the company’s operational EBITA dropped 13 percent to $6 million.
The negative impact on profit was due to a lower gross margin, as well as the market valuation of the company’s future currency exchange rate, according to the financial report.
“The revaluation of our FX Futures portfolio had a major impact on reported earnings for the quarter,” Persson said in a statement.
Persson said this year company will continue to focus on expanding and improving its digital presence and working to optimize its supply of oak while also mitigating price increases.
“Overall, 2018 has had a satisfactory beginning and I look forward to the rest of the year with confidence,” Persson said.
