Interim report, January-June 2022

Continued good growth and record order backlog

Second quarter 2022

• Net sales rose to SEK 2,475 million (2,009), up 23 percent. Organic growth amounted to 15 percent.
• Reported order intake increased by 11 percent and the order backlog increased by 32 percent to SEK 2,687 million. 
• EBITA increased to SEK 293 million (264) and the EBITA margin amounted to 11.8 percent (13.1). 
• Operating EBITA rose to SEK 297 million (267) and the operating EBITA margin amounted to 12.0 percent (13.3). 
• Earnings per share rose to SEK 3.66 (3.29). 
• Net debt decreased to a multiple of 1.0 in relation to operating EBITDA (0.7 excluding IFRS 16).
• Inwido acquired Westcoast Windows in Sweden and Hyvinkään Puuseppien in Finland.

January-June 2022

• Net sales rose to SEK 4,548 million (3,653), up 24 percent. Organic growth amounted to 17 percent.
• EBITA increased to SEK 470 million (385) and the EBITA margin amounted to 10.3 percent (10.5). 
• Operating EBITA rose to SEK 477 million (388) and the operating EBITA margin amounted to 10.5 percent (10.6). 
• Earnings per share rose to SEK 5.74 (5.00). 
• Cash flow from operating activities increased to SEK 361 million (278).
• Return on operating capital increased to 17.9 percent (15.7).

CEO comments:

The positive start to 2022 continued into the second quarter. Our organic growth remained at a good level, while we during the quarter also acquired Westcoast Windows in Sweden and Hyvinkään Puuseppien in Finland, which means that we take another step towards meeting our long-term growth target. During the quarter we noted our highest profit to date for a second quarter, reaching SEK 1 billion in EBITA for the first time on a rolling 12-month basis. At the same time, we had a lower margin during the quarter compared with the corresponding quarter in the preceding year, which was mainly attributable to Business Area e-Commerce. We are seeing that prices for input materials have continued to rise, while we work continuously to pass these increases on downstream. Our order backlog is at a record high, while order intake continues to increase, albeit at a slower rate than at the beginning of the year.

Despite an uncertain external world, with war in Ukraine, high inflation and rapidly rising interest rates, Inwido’s operations are stable, with strong cash flow and low debt levels. Over the quarter, net sales increased by 23 percent to SEK 2,475 million (2,009), 15 percent organically. Operating EBITA rose to SEK 297 million (267) while the operating EBITA margin fell to 12.0 percent (13.3). The order backlog of SEK 2,687 million is the highest to date with an increase of 32 percent and with order intake for the quarter increasing by 11 percent. 

Favorable development in three out of four business areas
Business Area Scandinavia continued its high level of growth over the quarter, combined with good profitability. Sales increased by 21 percent, operating EBITA rose by 20 percent to SEK 205 million (172) and the operating EBITA margin was 15.1 percent. The positive increase in sales is occurring in all of the Scandinavian business units, while the increase in profit is occurring mainly in Denmark and Norway.

Business Area Eastern Europe showed stronger organic growth, with demand in both the Consumer and Industry markets remaining favorable. Sales rose by 30 percent, operating EBITA increased to SEK 52 million (41) while the operating EBITA margin decreased marginally to 8.8 percent. The positive trend is clearly evident in our largest business unit in Finland and in the Polish operations, which are growing well while their profits are increasing. 

Business Area e-Commerce continues to face challenges from the first quarter. During the first two months of the quarter, implementing growth-promoting investments in machinery had a negative effect on production efficiency. In combination with increased investment in marketing for long-term growth, an unfavorable product mix, and comparison figures for 2021 being at a historically very high level, this has caused the profit margin to decrease. Sales decreased by 2 percent to SEK 268 million, operating EBITA amounted to SEK 20 million (55) and the operating EBITA margin was 7.6 percent (20.4). 

Business Area Western Europe showed sharply increased growth and profitability over the quarter. This was attributable to strong development, primarily in our Irish operations, while Dekko Window Systems, which was acquired in the first quarter, now made a clear contribution to development in the business area. Sales increased by 71 percent to SEK 247 million. Operating EBITA rose to SEK 25 million (8) and the operating EBITA margin rose to 9.9 percent. 

Our accelerated acquisition is bearing fruit
Our acquisition efforts accelerated and it is pleasing to have expanded the Inwido family with Westcoast Windows in Sweden and Hyvinkään Puuseppien in Finland during the quarter, these having been included in our accounts since June. With strong cash flow and a low debt/equity ratio, substantial opportunities for continued acquisitions remain even if the economy slows. 

Future prospects
The second quarter showed continued strong sales and our best second quarter profits to date. We enter the third quarter with a record order backlog, while order intake slowed to a certain extent at the end of the quarter. In the short term, external uncertainties, with rising energy prices, inflation, and higher interest rates mean that consumers’ disposable income is shrinking. In the long term, we remain optimistic regarding consumers’ strong interest in the indoor environment, combined with increasing demand for energy efficiency improvements, not least in times of rising energy prices.

MALMÖ, JULY 15, 2022

 
Henrik Hjalmarsson 
President and CEO

Read the full report in the pdf attached

This information is such that Inwido AB (publ) is obliged to publish in accordance with the EU market abuse regulation and the Swedish Securities Market Act. The information was submitted by the below contact persons for publication on July 15, 2022 at 7:45 a.m. CET.

For more information, please contact:
Henrik Hjalmarsson, President and CEO Tel.: 46 (0)76 846 20 46, henrik.hjalmarsson@inwido.com
Peter Welin, CFO and deputy CEO Tel.: 46 (0)703 24 31 90, peter.welin@inwido.com

About Inwido:
Inwido improves people's lives indoors with windows and doors. As Europe's leading window group, Inwido's business concept is to develop and sell the market's best customized window and door solutions through a decentralized structure and with a focus on the consumer-driven market in order to create long-term sustainable growth, organically and through acquisitions. Inwido consists of 32 business units with approximately 4,900 employees in eleven countries. In 2021 group sales amounted to SEK 7.7 billion with an operating EBITA margin of 11.7 percent. Inwido has been listed on Nasdaq Stockholm since 2014. Follow Inwido on LinkedIn.