Stable results in a challenging market
Through good cost control and with full impact from price increases, Inwido delivered an EBITA margin of 11.6 percent in the second quarter of 2023. This demonstrates the resilience of the Group's decentralised business model, as the market continued to weaken compared with the first quarter.
"Previously, the decline in the market was mainly due to a slowdown in new builds, but now the consumer market is also weakening, although not at the same pace. Both order intake and order backlog are declining because of the weaker market. The fact that Inwido despite this delivers an operational EBITA margin of 11.6 percent shows the resilience of our business model," says Henrik Hjalmarsson, President and CEO of Inwido.
During the quarter, net sales decreased by 9 percent and organic growth was -13 percent. Order intake decreased by 21 percent and the order backlog at the end of the quarter was SEK 1,575 million (2,687). Business Area Scandinavia showed a clearly weaker market. For Business Area Eastern Europe, the industrial market continued to be negative, while profitability clearly improved as price increases took full effect. The market for Business Area e-Commerce was characterized by fiercer competition, which together with the launch in the Netherlands caused the margin to fall. In Business Area Western Europe, the industrial market was more positive than the consumer market.
"The sharp increases in interest rates and inflation in Europe are affecting both new builds and consumers' willingness to invest. We therefore welcome the energy efficiency subsidies initiated in Sweden at the beginning of July to stimulate the market. The EU's clear ambition to raise the energy performance of buildings in the coming years in order to reduce the negative environmental impact means that I see very good long-term growth opportunities for energy-efficient windows and doors that also improve indoor environment," says Henrik Hjalmarsson.
For more information, please contact:
Henrik Hjalmarsson, President and CEO Tel.: 46 (0)76 846 20 46, henrik.hjalmarsson@inwido.com
Tobias Rydergren, Head of PR & Communication Tel.: 46 (0)70 255 23 61, tobias.rydergren@inwido.com
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 33 business units with approximately 4,500 employees in eleven countries. In 2022 group sales amounted to SEK 9.5 billion with an operating EBITA margin of 11.4 percent. Inwido has been listed on Nasdaq Stockholm since 2014. Follow Inwido on LinkedIn.
