Year-end report January-December 2020

This information is such that Inwido AB (publ) is obliged to publish in accordance with the EU market abuse regulation. The information was submitted by the below contact persons for publication on 10 February 2021 at 7:45 a.m. CET.

Although affected by the pandemic, a good fourth quarter gave a strong end to 2020

Fourth quarter of 2020

• Net sales amounted to SEK 1,798 million (1,813). Organic growth amounted to 1 percent.
• Order intake increased by 11 percent and the order backlog increased by 48 percent to SEK 1,142 million.
• EBITA increased to SEK 230 million (186) and the EBITA margin increased to 12.8 percent (10.3).
• Operating EBITA rose to SEK 231 million (211) and the operating EBITA margin rose to 12.9 percent (11.6).
• Earnings per share rose by 32 percent to SEK 3.02 (2.28).
• Net debt, excluding IFRS 16, in relation to operating EBITDA decreased to a multiple of 0.9 (2.2).

January-December 2020

• Net sales rose to SEK 6,681 million (6,631). Organic growth amounted to 2 percent.
• EBITA increased to SEK 712 million (621) and the EBITA margin increased to 10.7 percent (9.4).
• Operating EBITA rose to SEK 729 million (646) and the operating EBITA margin rose to 10.9 percent (9.7).
• Earnings per share rose to SEK 8.64 (7.48).
• The Board of Directors proposes a dividend of SEK 4.50 (0).
• Per Bertland is proposed as the new Chairman of the Board following Georg Brunstam having declined re-election.

The CEO comments

Despite Covid-19, 2020 was a successful year for Inwido. We delivered record profits and the Group’s highest sales to date. A strong balance sheet was also achieved by sharply reducing the level of net debt. We delivered organic growth in the fourth quarter and strengthened margins for the seventh quarter in a row, thanks to a beneficial sales mix and good cost awareness throughout the Group. A strong cash flow reduced the net debt to a multiple of 0.9x operating EBITDA, excluding IFRS 16. Net sales grew organically by 1 percent to SEK 1,798 million (1,813). Operating EBITA rose to SEK 231 million (211) and the operating EBITA margin rose to 12.9 percent (11.6). Net sales for 2020 increased to SEK 6,681 million (6,631), operating EBITA rose to SEK 729 million (646), with the operating EBITA margin thereby rising to 10.9 percent (9.7). We also ended the year with a strong, 11-percent increase in order intake and, at the end of the year, our order backlog was 48 percent higher than at the corresponding time in the preceding year. A good year in other words.

Developments in our two business areas
Business Area South continued its positive development in the fourth quarter. Sales increased organically by 5 percent and the operating EBITA margin amounted to 18.8 percent (19.7). In November, the margin was affected negatively by a Covid-19-related shutdown in a number of municipalities in which Inwido operates in Denmark. The consumer market has developed stably, and e-Commerce continued to grow organically, by as much as 32 percent in the quarter. This business unit accounted for 11 percent of the Group’s sales in the quarter and 12 percent during the full year 2020.
Business Area North experienced a generally stable consumer market and, with some signs of an emerging recovery in the industry market. Capacity and sales were affected negatively, however, by higher sick-leave due to Covid-19, primarily in Sweden. Sales during the quarter decreased organically by 2 percent, while the operating EBITA margin increased, for the second quarter in a row, to 7.4 percent (7.3).

Covid-19 pandemic
As our markets have been affected by the second wave of the pandemic, the efficiency of our production has been challenged. Our management has been put to the test and I am again impressed by how our business units master the challenges of the pandemic. Despite higher sick-leave, the sudden November shutdown by municipalities in North Jutland and new restrictions in the UK and Ireland, we have managed to cope successfully with the challenges and in accordance with clear principles. In the short to medium term, demand in the consumer and industry markets may be affected and we are monitoring developments closely to act if and when the situation requires this.

Acquisitions
With a record balance sheet and a strong will to succeed in the next stage of the growth journey, we are stepping up our acquisition efforts. We are currently conducting active dialogues in several different geographies, focusing on acquiring good businesses that we can further improve to deliver on our high ambitions for growth. However, the ongoing pandemic limits the speed of some transaction processes, given societal and travel constraints.

Future prospects 
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 focus on the consumer-driven market. We will achieve this with a continued strong focus on assuming responsibility for people and society, as well as for the climate. Accordingly, inspired by our new climate ambition, we will halve our carbon dioxide emissions by 2030, to be completely carbon neutral by 2050. In 2020, we reduced our carbon dioxide emissions by slightly more than 7 percent per unit produced, an important step in these efforts. We now enter 2021 with comfort, strengthened by a record order backlog, great ambitions and inexhaustible energy. As always, however, we will achieve this with a considerable dose of humility for the unknown in general and for the continued impact of the Covid-19 pandemic on societies and people in particular.

MALMÖ, 10 FEBRUARY 2021

Henrik Hjalmarsson
President and CEO

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.