Year-end report January-December 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 February 4, 2016, at 07:45.

The year ended strongly 

Fourth quarter of 2015

• Net sales rose to SEK 1,470 million (1,421), representing an increase of 2 percent for comparable units adjusted for currency effects
• Order bookings fell by 5 percent compared with the year-earlier quarter but rose by 4 percent excluding order bookings from construction companies 
• Operating EBITA rose to SEK 185 million (176) and the operating EBITA margin rose to 12.6 percent (12.4)
• EBITA amounted to SEK 76 million (176) after items affecting comparability of a negative SEK 109 million (0), and the EBITA margin was 5.2 percent (12.4)
• Earnings per share, before and after dilution, amounted to SEK 0 (1.89) due to items affecting comparability
• The structural measures are expected to lead to annual savings of SEK 50‑60 million, with full effect from 2017
• Acquisition of Jack Brunsdon & Son in the UK

January-December 2015 

• Net sales rose to SEK 5,220 million (4,916), representing an increase of 4 percent for comparable units adjusted for currency effects
• Order bookings were up 2 percent for comparable units.
• Operating EBITA rose to SEK 589 million (502) and the operating EBITA margin rose to 11.3 percent (10.2)
• EBITA increased to SEK 480 million (376) after items affecting comparability of a neg. SEK 109 million (neg. 125), and the EBITA margin grew to 9.2 percent (7.7)
• Earnings per share, before and after dilution, increased to SEK 5.10 (3.12)
• As of 1 July 2015, lnwido’s e-Commerce operations are accounted for in the Emerging Business Europe segment (EBE). Historical comparison figures have been adjusted (see Note 6)
• The Board of Directors proposes a dividend of SEK 2.50 per share (2.00)

The CEO comments:
"The trend that pervaded Inwido during 2015, with good development in sales and earnings, continued in the fourth quarter. Sales rose by 2 percent for comparable units, measured in SEK. The favourable profitability continued to improve, and we reached an operating EBITA margin of 12.6 percent. Order bookings decreased by 5 percent, although it should be noted that order bookings for our priority consumer business were positive, especially at the end of the quarter. The order backlog was 3 percent higher for comparable units than it was at the same point in time in the preceding year. It is with pleasure that I can report that we achieved the best fourth quarter in Inwido’s history, while we also strengthen our position as Europe’s largest manufacturer of windows. 

For the 2015 full-year, sales increased organically by 4 percent in SEK and operating profit rose by 17 percent to SEK 589 million. The operating EBITA margin ended up at 11.3 percent.

All operating segments, with the exception of Finland, contributed positively to the improvement in earnings during 2015. However, conditions have varied greatly. During the first half of the year in particular, the Finnish market was pervaded by a weak market across the board. Given the circumstances, as the market leader, Inwido coped well and increased stability could be discerned towards the end of the year. Once again, Denmark achieved a very good year, although profits were burdened by less profitable industrial transactions, which also induced the restructuring measures initiated in the fourth quarter. The trend in Sweden was characterised by the strategic shift that has been implemented towards an increased share of consumer sales. This change is also reflected in sharply improved profitability. Inwido in Norway had a challenging 2015 with tangibly lower volumes. However, losses continued to decline thanks to the vigorous changes and initiatives undertaken to increase competitiveness. Developments outside the Nordic region have been mixed, with Ireland as our strongest individual market. Development in e-Commerce was favourable over the year, with November’s launch in Germany being the single most important initiative.

Our view is that the underlying demand for our products and services is stable – a view that is confirmed by, for example, the fact that we have not so far seen any immediate impact of the change in the tax deduction that was introduced in Sweden at the start of the year. We are also keeping to our strategic plan well. This entails the continuing transition towards more consumer business, that we are continuously reviewing our capacity and structure to identify, where possible, additional efficiency enhancements and that we have intensified our work with both organic and acquisition-based growth. On the other hand, external developments, both political and financial, remain uncertain with many risks that could affect our business adversely. These are factors that impact Inwido just as much as they affect many others.

In conclusion, I note, in the depth of our seasonally quietest and coolest period, that 2015 was Inwido’s best year to date. At the same time, I believe considerable opportunities remain to continuously improve our company." 

MALMÖ, FEBRUARY 4, 2016

Håkan Jeppsson
President and CEO 

The the entire 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 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 3,400 employees and generated sales of slightly more than SEK 5.2 billion in 2015. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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