US-based office furniture manufacturer Kimball has posted a second consecutive quarter of sales growth.
In Q2 2019, which ended 31 December 2018, sales grew 11% to $201 million on an organic basis, driven by increases in almost all of its vertical markets. Adjusted EBITDA rose 5.2% to $17 million.
There was strong momentum in the Commercial segment, as it reported 29% organic sales growth, while the Healthcare vertical was up 20% due to continued strategic focus. Hospitality sales, meanwhile, increased 16% due to both programme and higher margin custom business. Fluctuations in the Government vertical led to a sales decline of 21%.
During the quarter, the sale of new products approximated 27% of total office furniture sales, compared to 19% in the prior year period. Orders received were up 4% on an organic basis, primarily attributed to Healthcare (22%), Education (10%) and Commercial (5%) vertical markets.
Kimball CEO Kristie Juster said: “Our strong financial position has allowed us to make solid investments in our strategic growth initiatives for 2019: new products, the healthcare vertical, our deeper focus on the architectural and design community and the recently announced David Edward acquisition. These strategic investments are a critical step in setting the foundation for our next chapter of growth.”
