INTERIM REPORT, January–September 2017
Continued strong sales growth. Margin compression as raw material prices remain high.
Third quarter of 2017
- Consolidated net sales increased by 23 percent to SEK 646 m (527), of which organic growth amounted to 5 percent. Acquisitions contributed by 18 percent and the currency translation effects were neutral
- Net sales in Products & Solutions amounted to SEK 457 m (387) and Installation Services to SEK 218 m (167)
- EBITDA before items affecting comparability increased by 5 percent to SEK 96 m (92)
- Operating profit (EBIT) before items affecting comparability decreased by 2 percent to SEK 83 m (85)
- Operating profit (EBIT) amounted to SEK 81 m (84)
- Operating cash flow amounted to SEK 103 m (85)
- Earnings per share before and after dilution were SEK 2.70 (3.04)
- Consolidated net sales increased by 19 percent to SEK 1,629 m (1,373), of which organic growth amounted to 4 percent. Acquisitions contributed by 13 percent and currency by 2 percent
- Net sales in Products & Solutions amounted to SEK 1,186 m (1,043) and Installation Services to SEK 522 m (402)
- EBITDA before items affecting comparability decreased by 5 percent to SEK 188 m (198)
- Operating profit (EBIT) before items affecting comparability decreased by 10 percent to SEK 163 m (181)
- Operating profit (EBIT) amounted to SEK 150 m (167)
- Operating cash flow amounted to SEK 75 m (87)
- Earnings per share before and after dilution were SEK 4.77 (5.36)
Message from the CEO
Continued strong sales growth and margin compression
Consolidated net sales for the third quarter rose by 23 percent compared with the third quarter last year, from SEK 527 m to SEK 646 m. Sales was postively affected by favorable weather conditions in the beginning of the quarter, and negatively affected by early autumn and rainy weather in September. All newly acquired companies contributed according to plan.
At SEK 83 m, EBIT before items affecting comparability was slightly below last year’s SEK 85 m. The raw materials prices have been stable during the quarter but at a higher level than last year. Our own sales price increases have reached their full impact by the middle of the third quarter, but do not fully offset the increased raw material costs in all markets as the raw material prices have remained at a higher level than previously expected. All four of our acquisitions continued to contribute positively, in line with the forecasts made at the time of acquisition.
Both of our operating segments contributed to our consolidated sales growth of 23 percent. While our Products & Solutions operating segment reported a sales increase of 18 percent, our Installation Services operating segment achieved an increase of 31 percent deriving from both a continued improvement in demand in the Finnish market and the contribution from acquisitions.
Within our Products & Solutions segment, Denmark and Sweden contributed positively. Sales in Norway decreased by 5 percent, due to strong competition and instability within the Builders Merchants segment. SealEco showed strong sales compared with the preceding year, with additional sales from the recently acquired EPDM Systems. Although Taasinge Elementer is performing very well, the positive effect is only visible at the EBITDA-level as the earnings in the acquired order book are amortized according to IFRS, hence not positively affecting EBIT for the first year following the acquisition.
Installation Services in Finland achieved a 13 percent sales increase in the third quarter of 2017, compared with the corresponding quarter in 2016 and comparable operations. Our flat roof installation services business in Finland is showing growth and maintaining its market share, although profitability in the legacy operations is not at a satisfactory level. Profit improvement measures will be put in place before start of the high season in 2018. Our Danish franchise companies continued to perform well in the third quarter.
Earnings per share for the quarter were 2.70 SEK (3.04).
In early July, we made our fourth acquisition for the year with the acquisition of the Danish company Taasinge Elementer A/S, thereby continuing to deliver on our commitment to expand our business through both internal and external growth. Taasinge Elementer is Denmark’s leading manufacturer of prefabricated roof and facade elements based on wooden frame constructions for the construction industry, with annual sales of approximately SEK 150 million. Taasinge Elementer is performing well and is currently experiencing strong growth compared with the previous year. For this reason, an element prefabrication unit is currently being established in Latvia.
Vejen, 7 November 2017
President and CEO
A conference call for investors, analysts and media will be held today, 7 November 2017, 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 9803|
||+45 3544 5575|
||+46 8 5664 2662|
|Further information can be obtained from|
|Martin Ellis, President and CEO
||tel: +45 31 21 36 69|
|Jonas Olin, CFO & Investor Relations
||tel: +46 708 29 14 54|
This information is information that Nordic Waterproofing Holding A/S is obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of the contact persons set out above, at 7 November 2017, 08:00 a.m. CET.