Interim report January-March 2017

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 24 April 2017 at 7:45 a.m. CET.

Record-strong start to 2017

January - March 2017

• Net sales rose to SEK 1,365 million (1,048), representing an increase of 30 percent. Organic growth was 11 percent
• Organic growth adjusted for closure of ProTec in Denmark amounted to 15%
• EBITA increased to SEK 82 million (27) after items affecting comparability of a negative SEK 1 million (negative 10), and the EBITA margin grew to 6.0 percent (2.5)
• Operating EBITA rose to SEK 83 million (37) and the operating EBITA margin rose to 6.1 percent (3.5)
• Earnings per share before dilution, increased to SEK 0.69 (0.04)
• Johan Berg took over as Senior Vice President of Inwido Finland on 4 April

The CEO comments:
"It is pleasing to report that Inwido’s strong performance is continuing. We have begun 2017 with our best first quarter to date in terms of earnings, sales and orders alike. Operating profit was SEK 83 million, compared with SEK 37 million in 2016, and total sales rose by 30 percent to SEK 1,365 million. This means that the rolling 12-month operating EBITA margin rose to 12.0 percent. Order bookings increased by 38 percent and the order backlog at the end of the quarter was 29 percent higher than at the same point in 2016. 

While reporting these strong growth figures, it is important that we remember that the first quarter is seasonally our smallest. In addition, Easter fell within the first quarter of last year, weakening the comparative figures somewhat.  

Operating segments   
The Nordic markets have generally been favourable, and we are seeing a positive trend with regard to consumer confidence. Not least in Denmark where the strong performance from late 2016 continued. Denmark grew organically by 21 percent. In Sweden, order bookings turned upwards, increasing by 13 percent, which is naturally gratifying. In particular, strong new built is driving development here. Norway is also showing continuous improvement, with sales growing organically by 38 percent. Finland also developed favourably, primarily in new construction, growing organically by 11 percent.  

In EBE (Emerging Business Europe), development has also been strong. In the UK, our new acquisition, CWG, developed particularly well, making a major contribution to organic growth of 22 percent. The e-Commerce business unit continues to grow strongly, increasing its sales by 51 percent and order bookings by 23 percent, with continued good profitability. We now have e‑Commerce operations in seven markets. Some of these showed very strong development, with Norway standing out, having doubled its sales.  

Our combined assessment is that, overall, the markets have not increased at the same rate as we have - meaning we have further strengthened our positions. 

Acquisitions  
Acquisitions remain a fundamental part of Inwido’s growth strategy and we are working intensively to identify new opportunities. In 2016, we acquired four companies with combined annual sales of about SEK 900 million, and they continue to deliver very well. 

Continued initiatives in innovation  
Our initiative to advance our leading positions by developing new products and concepts has continued. We have established an office at Ideon Science Park in Lund, giving us access to key skills, focusing, for example, on products for the smart home.  
During the quarter, we launched the smart sun blind through our Danish brand, Art Andersen Cph, and the Copenhagen Blinds product. In late 2016, we launched a door concept through Diplomat and the smart window through Hemmafönster in Sweden. Over the quarter, we sold about 1,500 smart windows, which is a promising start. 

Future prospects  
We continue to work towards our vision – improving life at home – while continuously reviewing our structure to identify further efficiencies. External developments, both political and financial, remain uncertain with many risks that could affect our business. Strong profit growth based on increased sales and continuously improved efficiency is prioritized highly.  

Based on the position we have achieved in recent years and with the strong start to the year to bolster us, we remain optimistic about the remainder of 2017."  

MALMÖ, 24 APRIL 2017

Håkan Jeppsson
President and CEO 

Please read the full report in the pdf attached

For more information, please contact:
Inwido AB
Håkan Jeppsson, President and CEO Tel.: 46 (0)10-451 45 51 or 46 (0)70-550 15 17
Peter Welin, CFO Tel.: 46 (0)10-451 45 52 or 46 (0)703 24 31 90 
E-mail: peter.welin@inwido.com

About Inwido
Inwido is Europe’s largest supplier of windows and a leading door supplier. The company has operations in Denmark, Finland, Norway, Sweden, Austria, Estionia, Ireland, Lithuania, Poland and the UK, as well as exports to a large number of other countries. The Group markets some 20 strong local brands including Elitfönster, SnickarPer, Hajom, Hemmafönster, Outline, Tiivi, Pihla, Diplomat and Sokolka. Inwido has approximately 4,000 employees and generated sales of slightly more than SEK 5.7 billion in 2016. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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