Year-end report January - December 2022

Strong end to a record year

Fourth quarter 2022

• Net sales rose to SEK 2,613 million (2,175), up 20 percent. Organic growth amounted to 10 percent.
• Reported order intake increased by 2 percent while the order backlog decreased by 15 percent to SEK 1,583 million. 
• EBITA increased to SEK 319 million (262) and the EBITA margin amounted to 12.2 percent (12.1%). 
• Operating EBITA rose to SEK 315 million (244) and the operating EBITA margin increased to 12.1 percent (11.2%). 
• Earnings per share rose to SEK 4.11 (3.72). 
• Net debt amounted to a multiple of 0.6 in relation to operating EBITDA (0.2 excluding IFRS 16)

January–December 2022

• Net sales rose to SEK 9,547 million (7,725), up 24 per-cent. Organic growth amounted to 14 percent
• EBITA increased to SEK 1,087 million (922) and the EBITA margin amounted to 11.4 percent (11.9%). 
• Operating EBITA rose to SEK 1,090 million (907) and the operating EBITA margin amounted to 11.4 percent (11.7%). 
• Return on operating capital increased to 18.3 percent (16.9%)
• Earnings per share rose to SEK 13.74 (12.29). 
• The Board of Directors proposes a dividend of 6.50 (6.15) per share.

CEO comments:

Summing up 2022, I can conclude that Inwido performed very well during a turbulent year. The year is ends with, for the first time, passing SEK 300 million in operating EBITA for an individual quarter, contributing to a full-year profit of more than SEK 1 billion by a margin. It is with pride that I can confirm that this was Inwido’s strongest quarter to date. The fourth quarter showed continued growth, both organically and with contributions from the companies acquired over the year. At the same time, the return on operating capital improved and strong cash flow was generated. This has created the conditions to be able to raise the dividend for 2022 too, while continuing to investing in growth.

Although order intake was stable over the quarter, increasing 2 percent, a change in the market can now be seen. Within the Consumer segment, our area of focus, demand is stable while purchasing needs in the Industry segment are slowing down. Although 2022 was a tough year for e-Commerce, we are now seeing signs of the trend having turned, with fourth quarter profit being stronger than in the preceding year, while order intake is increasing. The strong pace of price increases for input materials experienced over the first three quarters has now slowed, and the price increases implemented continuously over the year are reflected in increasing margins.

Over the quarter, net sales increased by 20 percent to SEK 2,613 million (2,175) and organic growth was 10 percent. Operating EBITA rose to SEK 315 million (244) while the operating EBITA margin rose to 12.1 percent (11.2). While the order backlog of SEK 1,583 million does entail a decline by 15 percent, it is nonetheless at a level well in line with our long-term growth target. Over the year, CO2 emissions decreased by 22 percent, meaning we have now reduced them by 50 percent compared with 2019, thereby already achieving our climate ambition for 2030.

Positive development in all business areas
Business Area Scandinavia saw continued good growth over the quarter, which was combined with improved profitability. Sales increased by 16 percent, operating EBITA rose by 24 percent to SEK 211 million (170) and the operating EBITA margin rose to 14.8 percent (13,8). The development is driven by strong sales in the Consumer segment, while price increases have now taken effect, providing a better margin.

Business Area Eastern Europe showed strong growth, with good sales in both the Consumer and Industry markets. Sales rose by 29 percent, operating EBITA increased to SEK 80 million (43) while the operating EBITA margin increased to 11.0 percent (7.6). The strengthened margin derives from the previously implemented price increases now having an impact. Within the business area, the positive trend is most evident in our largest business unit and in Metallityö Välimäki, which was acquired in 2021.

Business area e-Commerce experienced a turnaround following the challenges experienced in the first three quarters of 2022. Sales, profit and order intake are now developing favorably. The investments in equipment to support growth have been implemented and efficiency is improving steadily. Sales increased by 13 percent to SEK 246 million, operating EBITA amounted to SEK 21 million (20) and the operating EBITA margin was 8.6 percent (9.2). 

Business area Western Europe showed increased growth and profit over the quarter. Here, we can see that the growth in sales is clearly being driven by the Consumer market. Much of this growth derived from Dekko, which was acquired during the year. Over the quarter, profitability declined somewhat due to a negative mix. Sales increased by 45 percent to SEK 230 million. Operating EBITA rose to SEK 17 million (15) and the operating EBITA margin decreased to 7.3 percent (9.3). 

Three successful acquisitions in 2022
Three companies were acquired in 2022: Dekko Window Systems, Westcoast Windows and Hyvinkään Puuseppien. All companies are contributing positively to the Group with good growth, while our Group-wide sourcing function helps further enhance the profitability of the new business units. With strong cash flow and a low debt ratio, great opportunities remain for continued acquisitions in 2023. 

Future prospects
The fourth quarter saw continued good sales and our highest quarterly profit to date. We enter 2023 with an order backlog that is back to a more normal level following the effects of the pandemic, while order intake is stable overall. We are, however, seeing clearly weaker demand from the industrial segment. At the same time, high energy prices have increased consumers’ interest in energy-efficient windows and doors, even though disposable incomes are falling. In the long term, we are also optimistic regarding the Industry market, as the need for new housing remains high, while many older properties will need to be renovated to become more energy efficient, reduce emissions and offer a better indoor environment.

MALMÖ, FEBRUARY 7, 2023

Henrik Hjalmarsson, President and CEO
 

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 February 7, 2023 at 7:45 a.m. 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

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 32 business units with approximately 4,900 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.