Workplace Furnishings profit up at HNI

HNI’s Workplace Furnishings division has delivered its highest first quarter profit margin since 2016.

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HNI’s Workplace Furnishings division has delivered its highest first quarter profit margin since 2016.

The unit’s profit transformation plan and the addition of the Kimball business helped Workplace Furnishings achieve an adjusted operating margin of 6% in the first three months of 2024. Excluding the impact of the Kimball acquisition, legacy operating margin improved by 560 basis points year over year to 4.3%.

Revenue for the quarter was $440 million, up by almost 50% on that of 12 months ago, driven by Kimball. Organic sales fell by 2.5% as underlying volumes declined.

HNI CEO Jeff Lorenger said the volume decrease was in line with expectations, with SMB customers outperforming the contact segment. SMB demand continues to benefit from dynamics such as the population shift to markets outside the ten largest metro areas in the US.

He added that Kimball revenue outperformed expectations thanks to a strong performance in the hospitality sector, and less disruption than feared from the Red Sea shipping delays.

Muscatine (IA), USA