Inwido’s financial ambition is to increase operating EBITA by at least 10 percent annually
Inwido’s financial ambition continues to be to increase operating EBITA by at least 10 percent annually. This is the message that will be conveyed by Inwido’s President and CEO Håkan Jeppsson at the Group’s Capital Markets Day in Stockholm today. At the same time, he confirms that the financial targets remain in place.
On the Capital Markets Day, the profitability target will be clarified as achieving an operating EBITA margin of 12 percent, given the phase of growth and acquisitions the Company is currently experiencing. For the near future, the ambition is to achieve operating EBITA margin of 15 percent (13) in the Nordic region and 7 percent (2) in the rest of Europe.
The efficiency and cost improvement programme that was launched in the fourth quarter of 2017 to strengthen Inwido’s competitiveness is progressing as planned. In total, Inwido estimates that costs will be reduced by at least SEK 100 million on an annual basis, starting from 2018 and reaching full impact in 2019. The programme also includes the operations in Austria and the UK, and will generate structural costs totalling approximately SEK 80 million over the next two quarters.
Today’s event will also reveal that the Group’s e-commerce operations are growing strongly and have clear plans to continue expanding with good profitability, in line with the Group’s expectations.Since 2007, Inwido has sharply enhanced the efficiency of its production, entailing the number of production units has decreased by almost half. This process is continuing and the considerable potential that exists for further rationalisation over the next few years will be presented during the Capital Markets Day.
Inwido’s initiatives in smart homes are ongoing and the objective is that 50 percent of Inwido’s s sales to be connectable products by 2020, and that 20 percent to be connected.
For the next few years, the Group’s investments are estimated to correspond to slightly more than 3 percent of sales and will be spread across three focus areas: efficiency/productivity, strategic new products and IT investments, as well as maintenance and service.
Finally, Inwido will reaffirm its financial targets:
- Exceeding growth in the Company’s current markets through organic growth, as well as selective acquisitions and initiatives in Europe
- An operating EBITA margin of 12 percent
- Net debt in relation to operating EBITDA shall, excluding temporary deviations, not exceed a multiple of 2.5
- To pay shareholders an annual dividend corresponding to approximately 50 percent of net profit. However, Inwido’s financial status in relation to the target, cash flow and future prospects shall be taken into consideration
For more information, please contact:
Håkan Jeppsson, President and CEO Tel.: 46 (0)10-451 45 51 or 46 (0)70-550 15 17
Peter Welin, CFO Tel.: 46 (0)10-451 45 52 or 46 (0)703 24 31 90
Inwido is Europe’s largest supplier of windows and a leading door supplier. The company has operations in Denmark, Finland, Norway, Sweden, Austria, Estionia, Ireland, Lithuania, Poland and the UK, as well as exports to a large number of other countries. The Group markets some 20 strong local brands including Elitfönster, SnickarPer, Hajom, Hemmafönster, Outline, Tiivi, Pihla, Diplomat and Sokolka. Inwido has approximately 4,000 employees and generated sales of slightly more than SEK 5.7 billion in 2016. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com