Interim report January-March 2021

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 27 April 2021 at 7:45 a.m. CET.

A strong start to 2021

January – March 2021

• Net sales rose to SEK 1,644 million (1,448). Organic growth amounted to 18 percent.
• Order intake increased by 15 percent and the order backlog increased by 43 percent to SEK 1,471 million. 
• EBITA increased to SEK 121 million (48) and the EBITA margin increased to 7.3 percent (3.3).
• Earnings per share rose to SEK 1.71 (0.10).
• Net debt, excluding IFRS 16, in relation to operating EBITDA decreased to a multiple of 0.9 (2.3).
• Inwido acquired MV Center in Finland, which specializes in aluminium and steel doors, as well as windows and glass facades.

The CEO comments:
"It is with humility and pride that I can report that Inwido’s positive development continues. We have begun the year with our best first quarter to date in terms of sales, profits and order intake. During the period, we managed to realize our order backlog from the start of the year into very good sales growth. With the acquisition of MV Center in Finland, we also took an important step to further accelerate our growth ambitions.

Backed by a positive consumer market and a continued high growth rate in e-commerce, net sales increased by 18 percent organically to SEK 1,644 million (1,448). Operating EBITA rose to SEK 121 million (48) and the operating EBITA margin rose to 7.3 percent (3.3). Bolstered by strong profits, we enter the second quarter with a record order backlog of SEK 1,471 million, up 43 percent. At the same time, it is important to note that the first quarter is seasonally our weakest, both in terms of sales and profit.

Strong consumer markets in South and North
Business Area South continued to develop strongly, with solid growth and improved profit. Sales increased organically by 25 percent and operating EBITA rose by 57 percent to SEK 105 million (67), lifting the operating EBITA margin to 14.6 percent (11.0). In Denmark, our business units continued to capitalize on a stable consumer market and, through vigorous efforts, they also managed to use the new building standards introduced at the start of the year (demanding greater energy efficiency) to further strengthen their business. In the UK and Ireland, we are now seeing a potential for recovery as society reopens. E-Commerce continued its profitable growth journey, growing organically by 34 percent over the quarter. In Business Area North, we are seeing a pleasing trend, with all business units improving their profits, bringing the business area from loss back to profit compared with the corresponding quarter last year. Sales increased organically by 13 percent and operating EBITA increased to SEK 26 million (loss 2), lifting the operating EBITA margin to 2.9 percent (negative 0.2). It is pleasing to note that the recent quarters’ margin improvements in BA North are continuing and accelerating.

Acquisition of MV Center
Shortly after the end of the quarter, Finnish MV Center was acquired, which specializes in aluminium and steel doors, as well as windows and glass facades. MV Center achieves annual sales of slightly more than SEK 100 million. This acquisition brings a successful company into the Group and strengthens our presence in an expansive Finnish region. Based on a strong balance sheet, we have accelerated our acquisition efforts and are in discussions with several potential companies.

Covid-19
Covid-19 had a limited negative impact during the quarter. In Sweden, particularly, our production efficiency has been affected by a higher than normal sick leave. Over the quarter, lockdowns in the UK in general, and in Ireland in particular, had a negative impact on construction activity and therefore also on our business. On the other hand, we are continuing to see a strong trend of home investment and altered purchasing behaviour, with increased e-commerce in the wake of Covid-19. We are monitoring developments closely to be able to respond quickly if and when the situation so demands.

Future prospects
During the first three months of the year, we continued to build on our position as Europe’s leading supplier of windows, with our eighth consecutive quarter with strengthened margins. On the positive side, we see ahead of us continued healthy demand in the consumer market for the near future, a strong e-commerce trend and a stabilizing industry market. On the flipside of the coin, we see increased inflationary pressure, with a limited supply of input materials, bringing short-term pressure on margins before we can fully adjust our sales prices. With our size and market presence, we also see potential in the situation and are working tirelessly to be the best option for our customers. With a decentralized and results-focused organization, we are driven by the urge to keep developing our Group, regardless of the challenges with which we are confronted. We remain optimistic, while nonetheless humble, regarding both our short and long-term prospects."

MALMÖ, 27 APRIL 2021
Henrik Hjalmarsson
President and CEO

Read the full report in the pdf attached

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 28 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.

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