INTERIM REPORT, January–June 2016
Continued strong organic growth and improved operating profit
Second quarter of 2016
- Consolidated net sales increased by 9 percent to SEK 522 m (481), of which organic growth amounted to 10 percent. Consolidated net sales were the highest ever for a second quarter.
- Net sales in Product & Solutions amounted to SEK 397 m (377) and Installation Services to SEK 156 m (129)
- Operating profit (EBIT) before items affecting comparability increased by 27 percent and amounted to SEK 84 m (66), which was the highest ever for the Group in a second quarter
- Operating profit (EBIT) amounted to SEK 75 m (59)
- Operating cash flow amounted to SEK 41 m (39)
- Earnings per share before and after dilution were SEK 2.31 (1.62)
- Consolidated net sales increased by 6 percent to SEK 846 m (800), of which organic growth amounted to 7 percent. Consolidated net sales were the highest ever for a first half of a year.
- Net sales in Products & Solutions amounted to SEK 656 m (630) and Installation Services to SEK 236 m (206)
- Operating profit (EBIT) before items affecting comparability increased by 38 percent and amounted to SEK 96 m (70), which was the highest ever for the Group in a first half of a year.
- Operating profit (EBIT) amounted to SEK 83 m (80)
- In accordance with the usual seasonal variations, the operating cash flow was negative, in the amount of SEK -10 m (-21)
- Earnings per share before and after dilution were SEK 2.32 (2.03)
Message from the CEO
Strong sales growth and significant improvement in earnings
Nordic Waterproofing Group’s business grew strongly in the second quarter of 2016, which was our first quarter as a listed company in the Mid Cap segment on Nasdaq Stockholm. Consolidated net sales rose by 9 percent and EBIT before items affecting profitability increased by 27 percent compared with the corresponding period in 2015.
This performance, combined with our good first quarter, makes for a record first half year in the history of our Group, with sales up 6 percent and EBIT before items affecting profitability up 38 percent compared with the corresponding period in 2015. Our focus is on continuing to provide best-in-class customer service, product quality and logistics solutions. Our performance is driven by the expertise and high level of motivation among our workforce. We continue to look forward to a good full-year for Nordic Waterproofing Group.
Nordic Waterproofing is one of Northern Europe's leading producers and providers of products and related services for waterproofing, protecting and preserving buildings and infrastructure.
Consolidated net sales in the second quarter of 2016 showed growth of 9 percent compared to the corresponding period in 2015, from SEK 481 m to SEK 522 m, with both of our operating segments contributing. While our Products & Solutions operating segment picked up steam with a sales increase of 5 percent, our Installation Services operating segment reported a particularly strong performance with an increase of 22 percent, following an improving demand picture in Finland. Denmark continues to see a stable favorable demand trend. The Swedish market is continuing its robust development, although we noted a slightly weaker demand in the DIY sales channel, and in our sales of infrastructure project-related products. Our sales in Norway are back on track to a significantly positive growth trend, after a somewhat slower first quarter. The Finnish market has confirmed the early signs of growth seen since the beginning of the year, driven primarily by customers' projects in the Helsinki region.
The Product & Solutions operating segment reported significant growth and an improved margin as the result of an increase in sales volumes combined with a continued focus on cost optimization. The period saw relatively low prices of oil and bitumen, albeit somewhat higher than during the first quarter.
The Installation Services operating segment reported improved results, primarily due to better volumes in our Finnish operations. Our total order book for Installation Services remains at a high level compared to the corresponding period in 2015. The business in this operating segment is primarily conducted in Finland and through franchise companies in Denmark.
In conclusion, we believe that the encouraging results obtained during the first six months of 2016 confirm the validity of our business model. We intend to continue strengthening our positions in our core markets, and evaluating growth opportunities in selected countries and market niches.
Vejen, 23 August 2016
President and CEO
A conference call for investors, analysts and media will be held today at 10:00 a.m. CET and can be joined online at www.nordicwaterproofing.com. Presentation material for the call will be available on the website one hour before the call.
|To participate, please dial:|
|From the United Kingdom:||+44 20 3008 9808|
|From Denmark:||+45 35 44 55 76|
|From Sweden:||+46 8 566 425 09|
Further information can be obtained from
Martin Ellis, President and CEO, tel: +45 3121 3669
Jonas Olin, CFO, tel: +46 708 29 14 54
Anders Antonsson, Investor Relations, tel: +46 709 99 49 70
This information is information that Nordic Waterproofing Holding A/S is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 23 August 2016, 08:00 p.m. CET.