Interim report January-September 2015

This information is such that Inwido AB (publ) is obliged to publish in accordance with the Swedish Securities Market Act and/or Financial Instruments Trading Act. The information was submitted for publication on Tuesday 20 October 2015, at 07:45 CET.

Strong performance and new initiatives 

Third quarter of 2015

• Net sales rose to SEK 1,326 million (1,287), which represents an increase of 2 percent adjusted for currency effects
• Order bookings rose by 13 percent compared with the year-earlier quarter 
• EBITA increased to SEK 195 million (150) after items affecting comparability of SEK 0 million (negative 21), and the EBITA margin grew to 14.7 percent (11.6)
• Operating EBITA increased to SEK 195 million (171) and the operating EBITA margin rose to 14.7 percent (13.3)
• Earnings per share, before and after dilution, increased to SEK 2.38 (1.87)
• Structural measures which have been initiated after the close of the reporting period are expected to lead to annual savings of SEK 50–60 million. The costs for these measures are estimated to be approximately SEK 100 million and will impact earnings in the fourth quarter of 2015
• Acquisition of Jack Brunsdon & Son in the UK (after the close of the reporting period) 

January–September 2015

• Net sales rose to SEK 3,750 million (3,495), which represents an increase of 4 percent for comparable units, adjusted for currency effects
• Order bookings were up by 5 percent for comparable units
• EBITA increased to SEK 404 million (201) after items affecting comparability of SEK 0 million (negative 125), and the EBITA margin grew to 10.8 percent (5.7)
• Operating EBITA increased to SEK 404 million (325) and the operating EBITA margin rose to 10.8 percent (9.3)
• Earnings per share, before and after dilution, increased to SEK 5.10 (1.23)
• As of 1 July 2015, Inwido’s e-Commerce operations are accounted for in the Emerging Business Europe segment (EBE) (see Note 5)

The CEO comments;
"Inwido has performed well this year both in terms of growth and profitability. The third quarter was clear confirmation of this. Sales rose by 2 percent, adjusted for currency, and order bookings were up by 13 percent. The order backlog is now 14 percent higher than at the same point in 2014 and at its highest ever level for a third quarter. Our operating profit of SEK 195 million equates to an increase of 14 percent on the same period in 2014 and the operating margin rose to 14.7 percent.

Development was strong in the third quarter, with some variation between our segments. Sweden and Denmark are continuing to perform well. In Sweden, our work to realign the business with the consumer market is generating results, and we are seeing greater activity in our priority customer segments. In Denmark, we’re still seeing a continued high level of activity and we are taking market share.
In Norway, general demand has weakened. The efficiency improvements we have introduced in recent years mean that our cost level better reflects underlying demand. The focus now is on increasing volumes and income. In Finland, we maintain a very strong position. However, market performance this year has been weak, and this is reflected in our figures. Nevertheless, it should be noted that order bookings rose in the third quarter, particularly towards the end of the period, and the order backlog is now in line with last year.
Within EBE (Emerging Business Europe), Ireland is still the fastest-growing market, followed by the UK. Performance in the Polish and Austrian markets is more sluggish, however. As previously announced, as of 1 July 2015 the Danish businesses JNA and SPAR have been moved within the organisation to the EBE business area. In order to ensure the right focus on this strategically important initiative, they will form the basis for a separate new business unit called e-Commerce. During the quarter much of the focus in e-Commerce was on preparing the German market launch, which is planned for November this year.

Inwido is constantly working to review overall capacity and efficiency within production and sales. For this reason, we are today announcing structural measures that will result in changes in manufacturing or sales organisations in Sweden, Denmark and Finland. The resources that this frees up both in terms of lower costs and investments as a consequence of fewer factories will among other be used in different initiatives to boost growth and profitability. The efforts within E-Commerce is an important area for us, as are product development, IT and acquisitions.

With regard to acquisitions, we are pleased to welcome the business Jack Brunsdon & Son to the Inwido Group. This premium brand, which has seven stores in the London area, will be a great addition and will result in a near doubling of our UK sales. 

Finally, I would like to note that we are now seeing the results of previous realignment measures and that demand in our priority customer segments is strong. Combined with the additional initiatives that we are announcing today, we are able to look ahead with confidence. However, we are operating in an environment of significant political and financial uncertainty, which could rapidly affect demand for our products."

MALMÖ, 20 OCTOBER 2015

Håkan Jeppsson 
President and CEO

Read the entire report in the pdf attached

A presentation and teleconference for analysts, media representatives and investors will be held today at 11:00 a.m. at Operaterrassen in Stockholm, where the report for the third quarter of 2015 will be presented by Håkan Jeppsson, President and CEO, and Peter Welin, CFO. Please indicate if you wish to attend the meeting at Operaterrassen by informing us via www.financialhearings.com or by e-mailing hearings@financialhearings.com. No preliminary notice is required to participate in the teleconference, but please call five minutes before the specified time so that the meeting can start on time. Call +46 (0)8-566 426 64 and state you are calling for the Inwido third quarter report. Presentation material for the teleconference will be broadcast live at http://www.inwido.com/sv/investerare/finansiella-rapporter-och-presentationer and saved for viewing later. 

For more information, please contact:
Inwido AB
Håkan Jeppsson, President and CEO Phone: 46 (0)10-451 45 51 or 46 (0)70-550 15 17
Peter Welin, CFO Phone: 46(0)70-324 3190 or 46(0)10-451 45 52 E-mail: peter.welin@inwido.com

About Inwido
Inwido is Europe’s largest supplier of windows and doors. 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 3,300 employees and generated sales of slightly more than SEK 4.9 billion in 2014. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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