Interim Report January-June 2021

Strong growth and good margins, despite inflation challenges

April – June 2021

• Net sales rose to SEK 2,009 million (1,719). Organic growth amounted to 19 percent.
• Reported order intake increased by 32 percent and the order backlog increased by 61 percent to SEK 2,029 million.
• EBITA increased to SEK 264 million (193) and the EBITA margin increased to 13.1 percent (11.2).
• Operating EBITA rose to SEK 267 million (202) and the operating EBITA margin rose to 13.3 percent (11.8).
• Earnings per share rose to SEK 3.29 (2.46).
• Net debt, excluding IFRS 16, in relation to operating EBITDA decreased to a multiple of 0.9 (1.7).
• Inwido acquired Metallityö Välimäki Oy in Finland.

January – June 2021

• Net sales rose to SEK 3,653 million (3,167). Organic growth amounted to 18 percent.
• EBITA increased to SEK 385 million (242) and the EBITA margin increased to 10.5 percent (7.6).
• Operating EBITA rose to SEK 388 million (251) and the operating EBITA margin rose to 10.6 percent (7.9).
• Earnings per share rose to SEK 5.00 (2.56).

The CEO comments:

I am pleased to note that Inwido’s positive development continues. We surpassed, for the first time, SEK 2 billion in sales for an individual quarter, and also generated our highest quarterly profit to date, as well as a record order backlog. This bolsters us in our efforts towards continued profitable growth.

The favourable development is the combined result of our position in a robust consumer market, our industry-leading e-commerce and a more positive industry market. Net sales increased organically by 19 percent to SEK 2,009 million (1,719). Operating EBITA rose to SEK 267 million (202) and the operating EBITA margin rose to 13.3 percent (11.8). We enter the third quarter with a order backlog of SEK 2,029 million, up 61 percent.

North and South both show strength
Business Area South continued to develop positively, with high growth and improved profit. Sales increased by 20 percent and operating EBITA rose to SEK 178 million (137), lifting the operating EBITA margin to 20.8 percent (19.3). In Denmark, our business units benefit from a strong consumer market and most of our businesses are almost fully booked well into the autumn. In the UK and Ireland, we are experiencing a high level of activity with pent-up demand following earlier Covid-19 shutdowns. e-Commerce continued its profitable growth journey, growing organically by 15 percent in the quarter and accounting for 13 percent of the Group’s sales.

In Business area North, we see a continued positive sales trend and a strengthening margin. Sales grew by 14 percent and operating EBITA increased to SEK 98 million (74), lifting the operating EBITA margin to 8.8 percent (7.6). It is pleasing that the recent quarters’ margin improvements are continuing. In the second quarter, it was primarily our Swedish business units that strengthened their margins under more favourable market conditions on both the consumer and industry sides. The industry market in particular has recovered faster than expected in Sweden and Finland and is showing stable demand.

Accelerated acquisition efforts
During the quarter, the acquisition of Metallityö Välimäki Oy was completed and the integration of the business unit commenced with the objective of it becoming the leading supplier of steel and aluminium doors and windows in Finland. Building on a strong balance sheet, acquisition efforts have been accelerated and we are pursuing discussions with several potential companies in Northern Europe.

Future prospects
During the first half of the year, the Group was strengthened with high growth and good profits. Currently, we see continued healthy demand in the consumer market, an increasingly positive industry market, and an expanding e-commerce. This benefits us, while we at the same time face short-term challenges from the current cost increases on input materials, which will affect margins, although we have been quick to make the necessary price adjustments. With our size and our supplier network, we also see long term opportunities developing from this situation.

We tirelessly continue to equip Inwido for expansion. We enter the third quarter with a large order backlog, a strong balance sheet and hungry for continued growth.

MALMÖ – 16 JULY 2021
Henrik Hjalmarsson
President and CEO

Read the full report in the pdf attached
 

This disclosure contains information that Inwido is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 16-07-2021 07:45 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 4,300 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.

Tags: