Kimball International swings to profit in Q2
Jasper-based Kimball International Inc. (Nasdaq: KBAL) is reporting fiscal second quarter net income of $3 million, up from a loss of $5.7 million during the same period last year. CEO Kristie Juster says second quarter sales grew 21% because of “significant contributions” from each of the company’s end markets, especially hospitality.
Juster says Kimball’s market share of the hospitality end market is enabling the company to capture growth opportunities from the industry’s post-COVID recovery.
“Our optimized go-to-market strategy, which includes a portfolio of high appeal affordable products and greater focus on our direct and day-to-day businesses, is enabling us to adapt to these changing market conditions and successfully navigate the evolving hybrid workplace,” said Juster. “We expect these initiatives, together with our cost-out and operational excellence programs, to provide Kimball International with resiliency in today’s business environment.”
The company also reported second quarter net sales of $183 million, a 21% increase year-over-year.
“This marked our fourth consecutive quarter of substantial year-on-year growth in Adjusted EBITDA driven by sales gains and production efficiencies, representing the effective execution of our strategic choices,” said Juster. “While upstream activity remains strong, we experienced a decline in orders rates in Workplace and Health during November and early December due to delayed decisions from clients in the face of recessionary concerns and after cycling significant year-over-year growth comps. However, our order rates improved through the month of January, giving us confidence the softening demand was temporary.”
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