Interim report, January-September 2024

Continued strong order intake in challenging markets

Third quarter 2024

• Net sales amounted to SEK 2,273 million (2,339), down 3 percent. Organic growth amounted to negative 1 percent.
• Total order intake increased by 3 percent, while the order backlog increased to SEK 2,640 million (2,428) as of September 30.
• Operating EBITA amounted to SEK 304 million (308) and the operating EBITA margin increased to 13.4 percent (13.2).
• Earnings per share before and after dilution amounted to SEK 3.23 (3.25) and SEK 3.22 (3.25), respectively.
• Net debt amounted to a multiple of 1.2 in relation to operating EBITDA (0.9 excluding IFRS 16).
• Artic-Kaihdin in Finland was acquired in September.

January–September 2024

• Net sales amounted to SEK 6,415 million (6,697), down 4 percent. Organic growth amounted to negative 10 percent.
• Operating EBITA amounted to SEK 657 million (737) and the operating EBITA margin amounted to 10.2 percent (11.0).
• Earnings per share before and after dilution amounted to SEK 6.12 (8.52) and SEK 6.10 (8.52), respectively.
• Return on operating capital amounted to 13.1 percent (16.2).

CEO Comments:

I am proud to report that Inwido is continuing to grow profitably. Order intake in Q3 increased for the second successive quarter, by 3 percent, both overall and adjusted for acquisitions. Sidey Group, which was acquired in July 2023, is now included in the comparative figures. Net sales in the quarter decreased by 3 percent to SEK 2,273 million (2,339) and operating EBITA amounted to SEK 304 million (308), while the operating EBITA margin increased to 13.4 percent (13.2).

Although demand in some market segments has started to rise since the spring, and leading macroeconomic indicators have gradually become more positive, several of our business units are facing challenges in the form of low demand and fierce price pressure in their markets, above all in Finland, Norway and the UK. In light of this, we are managing the decline in volume well and maintaining good margins, thanks to our clear governance model and ever more efficient operational platforms. Inwido is also continuing
to win market share in its principal markets, which is a confirmation of our successful strategy.

Acquisitions form one of the cornerstones of our profitable growth strategy, and during the quarter Inwido’s largest business unit in Finland, Pihla Group, acquired Artic-Kaihdin, one of Finland’s leading manufacturers of sun protection solutions. We are continuing to see an increased number of potential acquisition candidates, and I can note that Inwido’s attractiveness as a potential buyer remains high.

In the key performance indicators for sustainability work, sick leave and health and safety are continuing to improve, which is gratifying. The unit-related figures in the field of the environment continue to be challenged by lower volumes, although the absolute figures are pointing in a positive direction. Above all, energy consumption is the area that is developing negatively, mainly as a result of Sidey Group, which with its large fleet of vehicles is now included in the sustainability figures. The focused work aimed at reducing the Group’s environmental impact and achieving the established SBTi goals in both the short and the long term is proceeding according to plan.  

Business Area Scandinavia is continuing to deliver high margins. The strong market positions we hold in this business area, together with a favorable mix, resulted in the operating EBITA margin during the quarter increasing to 16.5 percent (16.0).
The level of activity in the Danish renovation market is good, and there are early signs that demand among consumers in Sweden has also bottomed out. Order intake increased by 2 percent, which should be viewed in the light of the significant decline in volume within new build.

Business Area Eastern Europe continues to be affected by the sharp slowdown in the volume of new build. The fact that the business area, with a drop in sales of 15 per cent during the quarter, is still delivering an operating EBITA margin of 10.8 per cent (12.7) is due to productivity-enhancing work. It is pleasing to note that both order intake and the order backlog rose by 11 percent during the quarter.

Business Area e-Commerce has continued the positive trend during the third quarter as well, and is considered to have advanced its positions in all markets. Sales increased by 7 percent compared to the corresponding period in 2023. The increase in volume contributed to the operating EBITA margin rising to 7.7 percent (7.5), despite increased market investments. These strategic investments are also having an impact on order intake, which is increasing by 16 percent. 

Business Area Western Europe continued to perform well in the third quarter with a growth in sales of 11 percent, while the operating EBITA margin increased to 13.5 percent (11.4). It is gratifying to see that several of Inwido’s major business units in the UK are now delivering increased volumes and improved profitability in a market that otherwise remains weak. Jonna Opitz, who has been acting EVP for Business Area Western Europe since October 2023, has now taken up this role permanently.

Outlook
Inwido is on an exciting journey of growth towards sales of SEK 20 billion by 2030. Step by step, we are moving in the right direction, strengthened by factors such as increased order intake, gained market shares and an ever more efficient operational platform.

The main external drivers of Inwido’s profitable growth, both in the short and the long term, are a normalization of demand within renovation, the management of pent-up demand within new build, and the green transition to energy-efficient housing in the EU. As well as these external factors, the Group will place additional focus on product development, internal cost and sales synergies, as well as value-creating acquisitions in both existing and new geographic areas.

In a geopolitically challenging environment, our outlook is supported by leading macroeconomic and construction-related indicators. Overall, this gives us confidence ahead of 2025 and 2026.

MALMÖ, OCTOBER 22, 2024

Fredrik Meuller,  
President and CEO

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 October 22, 2024 at 7:45 a.m. CET.  

For more information, please contact:
Fredrik Meuller, President and CEO
Tel. +46 (0) 734 22 70 11

Peter Welin, CFO and deputy CEO
Tel. +46 (0) 703 24 31 90

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 35 business units with approximately 4,200 employees in twelve countries. In 2023 group sales amounted to SEK 9 billion with an operating EBITA margin of 11.4 percent. Inwido has been listed on Nasdaq Stockholm since 2014. Follow Inwido on LinkedIn.

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