Magnet’s Swedish owner Nobia has reported a decline in sales and profits last year as demand for kitchens weakened across Europe.

Pre-tax profits dropped, falling to SEK 555m from SEK 958m in 2007. Nobia’s full-year sales were SEK 16bn compared to SEK 16.13bn the year before.

Lower volumes and store investments, coupled with an exchange rate effect, hit operating profit for the kitchens specialist.

Nobia president and chief executive Preban Bager said: "The weaker economy with a decline in demand has accelerated Nobia's extensive work on simplifying and enhancing the efficiency of the group's structure. Fewer units will lead to lower costs, efficiency improvements and a rational supply chain. We are now adapting production by closing or reducing production at several units.” Bager added: “Nobia has strong brand and market positions which we will continue to enhance.”