Idea note
This is an Idea note; It’s a collection of early signals – companies mentioned in fund letters, blogs, or by sharp investors online. Not a full pitch, just a starting point for ideas that might be worth a more in-depth look.
Undervalued Kitchen Giant Poised for Operational Transformation
Idea source: Adrigo
Price 5.3 SEK (2025-07-17)
Nobia AB is one of Europe’s largest kitchen manufacturers, operating through 10 strong local brands in the Nordic region and the UK. The company designs, manufactures, and sells kitchen solutions with an annual revenue of SEK 10.4 billion across consumer, trade, and project segments
Ticker: NOBI | Timeframe: 18-24 months | 🔁 Turnaround
Adrigo believes Nobia presents a compelling turnaround opportunity following a steep four-year share price drop, with it’s market cap going from SEK 12 billion to SEK 3.3 billion. The fund sees the kitchen market as having bottomed out, especially in the consumer segment, which is recovering due to Swedish tax relief measures and decreasing interest rates. Adrigo anticipates that the completion of Nobia’s SEK 3.7 billion automated factory in Jönköping will significantly boost margins by reducing production costs by 30%, while strong cash flows from improved earnings and low tax payments should quickly lower net debt and the market’s risk premium.
Setup: Distressed valuation after 75% market cap decline despite rights issue strengthening balance sheet.
Latest Development: Q1 2025 showed positive adjusted EBIT turnaround with 38.6% gross margin (highest since 2018) and significant Nordic profitability improvement.
Reason for Mispricing: Market pessimism over prolonged project market weakness obscures the benefits of consumer recovery and factory transformation.
Timing: The Jönköping factory is ramping up production, with gradual customer shipments starting in May 2025.
Value Catalysts: Factory capacity utilization, margin expansion, debt reduction, and project market recovery.
Risks: Delayed housing market recovery, UK market deterioration, factory ramp-up execution challenges
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