From GlobeNewswire:

The European heat pump market has seen significant fluctuations in demand, with a clear slowdown in the latter part of the year. Despite this, NIBE Group reported an increase in revenue of 16.4% to 46.649 Mkr and a post-tax profit of 6.331 Mkr. Multiple acquisitions were made in Canada, the Netherlands, Portugal, Ireland, and Denmark, with a combined annual turnover of approximately 3 billion SEK. Investments in renewable energy sources and sustainable development, along with an introduction of energy-efficient products and solutions, will continue to drive NIBE’s future growth.

Aiming to reduce costs in response to weak European heat pump market demand, NIBE Group has initiated a program to reduce staff, fixed costs, and inventory, especially in Climate Solutions in Europe. It is expected to lead to annual savings of about 600 Mkr with full effect in 2025. The program’s costs are estimated at around 900 Mkr. Challenges arose from rising global interest rates, a decrease in new housing construction in Sweden, and growing inventory amidst declining demand for heat pumps.

Political uncertainty in some European countries regarding forthcoming subsidy forms has also contributed to erratic demand. The company is, however, optimistic about long-term growth, given its investments in a more extensive product range, new business models, and enhanced market presence through strategic acquisitions. NIBE Group predicted a challenging 2024 but expressed a resilient approach to managing the situation.

Powerful political and economic factors have influenced the heat pump market in Europe, as increased security risks have led to trade barriers in several countries, affecting demand. However, NIBE remains optimistic about its long-term development even as it faced such uncertain times in 2024.

The company will continue to pursue a sustainable future and adapt to the challenges it faces, evidenced by their strategic investments and acquisitions over the years, positioning themselves for continued growth. NIBE Group projects an exceptional future performance despite the difficult situation in 2024.

NIBE Group will hold a press and analyst conference via the web, details of which can be accessed through their website. For more information, contact Gerteric Lindquist, CEO, and Hans Backman, CFO, at +46 (0)433-27 30 00. Information in this press release is in accordance with EU regulations and securities market laws. NIBE Group is listed on Nasdaq Nordic, Large Cap and SIX Swiss Exchange and is publicly disclosing this information on 16th February 2024 at 08:00 CET.



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