Year-end report January-December 2021

A good year with strong organic growth

Fourth quarter of 2021

• Net sales rose to SEK 2,175 million (1,798), up 21 percent. Organic growth amounted to 19 percent.
• Reported order intake increased by 7 percent and the order backlog increased by 62 percent to SEK 1,856 million.
• EBITA increased to SEK 262 million (230) and the EBITA margin amounted to 12.1 percent (12.8).
• Operating EBITA rose to SEK 244 million (231) and the operating EBITA margin amounted to 11.2 percent (12.9).
• Return on operating capital increased to 16.9 percent (12.6)
• Earnings per share rose to SEK 3.72 (3.02).
• Net debt decreased to a multiple of 0.6 in relation to operating EBITDA (0.3 excluding IFRS 16).
• Inwido launched new financial targets and, as of 2022, a new segmentation.

January–December 2021

• Net sales rose to SEK 7,725 million (6,681), up 16 percent. Organic growth amounted to 16 percent.
• EBITA increased to SEK 922 million (712) and the EBITA margin increased to 11.9 percent (10.7).
• Operating EBITA rose to SEK 907 million (729) and the operating EBITA margin rose to 11.7 percent (10.9).
• Operating cash flow amounted to SEK 1,015 million (1,206).
• Earnings per share rose to SEK 12.29 (8.64).
• The Board of Directors proposes a dividend of SEK 6.15 (4.50).

The CEO comments

For Inwido, 2021 was our best year to date. Despite waves of sharp price hikes on input materials, challenges in logistics and increased sick leave in the wake of Covid-19, the year also brought record organic growth of 16 percent, as well as Inwido’s strongest profit to date. We are pleased to have delivered, in 2021, a year that exceeded our new financial targets with a return on operating capital of fully 16.9 percent thanks to a favorable profit trend and reduced net debt. 

The final quarter of the year also served as a show of strength with 21-percent growth (organically 19 percent). Net sales rose to SEK 2,175 million (1,798). Operating EBITA rose to SEK 244 million (231) while the operating EBITA margin fell to 11.2 percent (12.9). The lower margin is attributable to a turbulent year with increasing costs for input materials, which we have been countering through ongoing price increases.

We ended the year with a 7-percent increase in order intake and, at the end of the year, our order backlog was 62 percent higher than in the corresponding period in the preceding year. 

Strong but varied development in North and South
Business Area South developed with strong growth and improved profit. Sales increased organically by 17 percent, operating EBITA rose to SEK 175 million (144) and the operating EBITA margin rose to 19.7 percent (18.8). Our larger Danish units have continued their journey of steady growth and capitalized well on increased volumes to the Consumer market and was also proactive in implementing price increases to offset increased expenses for input materials. Despite strong comparative figures, the e-Commerce business unit grew by 4 percent over the quarter, accounting for 9 percent of consolidated sales. At the same time, e-Commerce’s marketing expenses increased, affecting the margin negatively.

Business Area North grew strongly, although it experienced pressure on its margins at the same time. Sales rose by 25 percent (organically by 21 percent) and operating EBITA increased to SEK 75 million (73) while the operating EBITA margin fell to 6.1 percent (7.4). While our larger business units in Sweden and Finland increased their sales significantly, they suffered parallel blows from supply disruptions, increased sick leave and a lag in announced price increases due to longer-term industry contracts. This had a negative effect on margins. At the same time, it is gratifying to be seeing favorable development in many of our smaller business units.

Accelerated acquisition efforts
Based on our acquisition strategy, with its now increased focus on additional European countries, as well as a new long-term growth target, we are driving an accelerated acquisitions process. With additional resources being dedicated, several discussions are ongoing in parallel and today our list of potential acquisition targets is longer than previously. As we mainly seek family-owned companies, we are highly respectful of these dialogues requiring time.

Future prospects
As we sum up 2021, I am able to confirm that we are progressing well in delivering on our new financial targets in terms of growth, returns and indebtedness. The Board of Directors hereby proposes a dividend of SEK 6.15 per share, equivalent to 50 percent of earnings per share. With a strong order book and a stable level of activity in both the Consumer and Industry markets, we continue to view the short-term perspective for our operations positively. We continue to expect increasing expenses for input materials and are, on an ongoing basis, offsetting these with price increases in the market – with a natural lag, however, before these take effect. It is difficult to forecast precisely how the currently diminishing pandemic, as well as increased expenses for raw materials and transport will affect our markets in the medium term. In the longer term, we see continued strong demand for energy-efficient windows and doors, in line with Europe’s increasing focus on sustainability. Embarking on the next stage of our journey of growth, we are now setting a clear course for increased growth throughout the organization. With a new organization, including clearly identified areas of growth, and with resources being dedicated to this, we will build an even stronger Inwido. 

MALMÖ, 8 FEBRUARY 2022
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 8, 2022 at 7:45 a.m. CET.

Henrik Hjalmarsson, President and CEO
Tel: 46 (0)76-846 20 46, henrik.hjalmarsson@inwido.com
Peter Welin, CFO and deputy CEO
46(0)70-324 3190, 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 29 business units with approximately 4,600 employees in eleven countries. In 2021 group sales amounted to SEK 7.7 billion with an operating EBITA margin of 11.7 percent. Inwido has been listed on Nasdaq Stockholm since 2014. Follow Inwido on LinkedIn.

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