Interim report, January-March 2022

Best start to a year to date

First quarter 2022

• Net sales rose to SEK 2,073 million (1,644), up 26 percent. Organic growth amounted to 19 percent.
• Reported order intake increased by 28 percent and the order backlog increased by 57 percent to SEK 2,311 million.
• EBITA increased to SEK 177 million (121) and the EBITA margin increased to 8.5 percent (7.3).
• Operating EBITA rose to SEK 180 million (121) and the operating EBITA margin rose to 8.7 percent (7.3).
• Cash flow from operating activities increased to SEK 16 million (negative 75)
• Return on operating capital increased to 17.8 percent (14.3)
• Earnings per share rose to SEK 2.08 (1.71).
• Net debt decreased to a multiple of 0.8 in relation to operating EBITDA (0.6 excluding IFRS 16).
• Inwido acquired Dekko Window Systems in the UK, specializing in PVC and aluminium windows and doors.

"The positive development from 2021 continued into the first quarter of 2022. Strong organic sales growth combined with active efforts to raise prices to counter higher input material prices resulted in Inwido’s best first quarter to date. During the quarter, we acquired Dekko Window Systems, a piece of the puzzle in achieving our long-term growth objective, while our focused efforts to increase our contribution to a more sustainable society continues as planned. The quarter began with covid definitely letting its presence be known again, which weakened efficiency. We are compensating for sharply increased prices on input materials, albeit with a certain lag, which has led to both increased growth and improved margins. At the same time, order intake remained good. The good development is based on continued stable demand in both the consumer and industry markets, which resulted in net sales increasing by 26 percent to SEK 2,073 million (1,644). Operating EBITA rose to SEK 180 million (121) and the operating EBITA margin rose to 8.7 percent (7.3). The quarter ended with a record order backlog of SEK 2,311 million, up 57 percent, with order intake during the quarter increasing by 23 percent, excluding acquisitions. At the same time, it is important to note that the first quarter is seasonally our weakest, both in terms of sales and earnings. 

Favorable development in three out of four business areas
Business Area Scandinavia started the year very strongly, combining high growth with a significant improvement in profitability. Sales increased by 24 percent, operating EBITA rose by 61 percent to SEK 149 million (93) and the operating EBITA margin rose to 12.7 percent. The positive sales increase is occurring in all Scandinavian business units, while profitability is improving most clearly in our largest business units.
Business Area Eastern Europe is showing even stronger growth and increased profitability. Sales rose by 44 percent, operating EBITA increased to SEK 27 million (16) while the operating EBITA margin increased to 5.4 percent. The positive development is most evident in our largest business unit in Finland, which is growing strongly at the same time as profits have doubled. 
Business Area e-Commerce has had a challenging quarter following very strong development in recent years. The implementation of capacity-enhancing and growth-promoting machine investments has not progressed as planned, causing a temporarily negative impact on production and sales. Sales decreased by 12 percent to SEK 183 million, operating EBITA amounted to a negative SEK 8 million (positive 19) and the operating EBITA margin was a negative 4.2 percent. Demand remains stable, however, and the order book is larger than it was in the corresponding period last year.
Business area Western Europe showed greatly improved profitability for the quarter, while growth is strong both organically and through our new acquisition Dekko Window Systems. Sales increased by 62 percent to SEK 190 million. Operating EBITA rose to SEK 15 million (1) and the operating EBITA margin rose to 8.1 percent. 

Our accelerated acquisition is bearing fruit
With the goal of achieving sales of SEK 20 billion by 2030, we have accelerated our acquisition efforts. It was pleasing that we, at the beginning of March, acquired Dekko Window Systems, which will be our 30th business unit, becoming part of the growth-oriented Western Europe business area. We have a continued clear pipeline of acquisition candidates, primarily in Western Europe, but also in other markets.

Future prospects
The first quarter was the best start to a year to date for Inwido. In the short term, demand also looks stable, as can be seen in our growing order backlog. At the same time, there are several uncertainties in the world around us. The war in Ukraine is a humanitarian catastrophe and a tragedy for those affected. The impact of the war on the economy is difficult to predict. Inwido has no operations in Russia, Belarus or Ukraine. We also have very limited material flows from the countries in question and the flows we do have are now being quickly redirected to other countries.  As a consequence of both the war and the pandemic, we see continued disruptions in supply chains and continuously rising prices for input materials. This, combined with a general increase in inflation and rising interest rates, creates challenges. At the same time, the households’ focus on the home and local environment is increasing, which creates opportunities. In the long term, we remain optimistic with increasing demand for energy efficiency improvements, particularly in times of rising energy prices.

MALMÖ, 28 APRIL 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 April 28, 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 30 business units with approximately 4,800 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.