Interim report, January-September 2021

Another strong quarter

Third quarter of 2021

• Net sales rose to SEK 1,897 million (1,716). Organic growth amounted to 10 percent.
• Reported order intake increased by 22 percent and the order backlog increased by 75 percent to SEK 2,283 million.
• EBITA increased to SEK 275 million (240) and the EBITA margin increased to 14.5 percent (14.0).
• Operating EBITA rose to SEK 275 million (247) and the operating EBITA margin rose to 14.5 percent (14.4).
• Earnings per share rose to SEK 3.57 (3.05).
• Net debt, excluding IFRS 16, in relation to operating EBITDA decreased to a multiple of 0.7 (1.2).

January-September 2021

• Net sales rose to SEK 5,550 million (4,882). Organic growth amounted to 15 percent.
• EBITA increased to SEK 660 million (482) and the EBITA margin increased to 11.9 percent (9.9).
• Operating EBITA rose to SEK 663 million (498) and the operating EBITA margin rose to 11.9 percent (10.2).
• Earnings per share rose to SEK 8.57 (5.61).

The CEO comments:
As Inwido’s growth journey continues, it is with great satisfaction that we report our tenth consecutive quarter with increasing margins. At the same time, we delivered our highest quarterly profit to date, and achieved a double-digit increase in sales, driven by strengthened market positions and good demand. During the quarter, our capacity utilization increased, the mix was positive and increasing prices for raw material were met with proactive price adjustments. This has successfully defended and strengthened our margins. 

Net sales increased by 11 percent (organically by 10 percent) to SEK 1,897 million (1,716). Operating EBITA rose to SEK 275 million (247) and the operating EBITA margin rose to 14.5 percent (14.4). We enter the fourth quarter with Inwido’s highest order backlog to date of SEK 2,283 million, up 75 percent.

Good growth in North and South 
Business Area South developed with good growth and improved profit. Sales increased by 11 percent (organically by 12 percent), operating EBITA rose to SEK 206 million (195) and the operating EBITA margin amounted to 23.6 percent (24.7). The slightly lower margin was primarily a consequence of strategic market investments. Our large Danish business units continued their growth journey, and, in Ireland, the recovery continued in pace with renewed investment in construction and renovation. The e-Commerce business unit grew by 7 percent despite challenging comparison figures, accounting for 12 percent of the Group’s sales during the quarter. 
Business area North experienced positive development in both the Industry and Consumer markets. Sales grew by 10 percent (organically by 8 percent), operating EBITA rose to SEK 78 million (73), while the operating EBITA margin amounted to 7.9 percent (8.2), primarily due to investments in marketing and IT. We are experiencing good development both for Elitfönster as well as its installation concept Elitfönster på Plats and are proud to announce that the company’s products achieved the market’s lowest climate impact in a life cycle analysis (EPD) conducted recently.

Accelerated acquisition efforts
With a record-strong balance sheet, ongoing acquisition dialogues have been accelerated in 2021. In line with our ambition to accelerate our overall growth with value-generating acquisitions, we are currently in discussions with several potential target companies. 

Future prospects
During the first three quarters of the year, good growth, proactive price adjustments, increased capacity utilization and reduced central overheads strengthened all of our key ratios, while investments were made to further expansion, both through acquisitions and organic growth. Given the sharp increases in costs for input materials in 2021, we are maintaining our alertness and are prepared to implement additional price adjustments, should this be necessary to defend our margins. With a record-strong order book and a stable level of activity in both the Consumer and Industry markets, we look to the near future with confidence. Although it is difficult to predict precisely how the currently diminuating pandemic as well as higher costs for input materials and transportation will affect our markets in the medium term, in the longer term we expect continued strong demand for energy-efficient windows and doors, in line with Europe’s increasing focus on sustainability. 

We face the final quarter of the year with great hunger and humble optimism in our endeavor to improve people’s lives indoors, to develop the Group’s employees and to generate increased value for shareholders.

MALMÖ, 26 OCTOBER 2021
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 26 October 2021 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

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 29 business units with approximately 4,600 employees in eleven countries. In 2020 group sales amounted to SEK 6.7 billion with an operating EBITA margin of 10.9 percent. Inwido has been listed on Nasdaq Stockholm since 2014. Follow Inwido on LinkedIn.

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