Lindab’s Interim Report, January – June 2021: High sales growth and record strong results

Demand was high during the second quarter and sales increased significantly compared with the corresponding quarter previous year. All business areas developed positively with organic sales growth and improved profitability. The two largest business areas, Ventilation Systems and Profile Systems, had the highest sales and the highest operating profit ever for a single quarter. All in all, this led to a record strong operating profit.

Second quarter 2021

• Net sales increased by 24 percent to SEK 2,747 m (2,218). Organic growth was 26 percent while currency had a negative impact on net sales by 4 percent.
• Adjusted¹⁾ operating profit increased to SEK 356 m (222).
• Operating profit increased to SEK 356 m (148).
• Adjusted¹⁾ operating margin increased to 13.0 percent (10.0).
• Operating margin increased to 13.0 percent (6.7).
• Profit for the period increased to SEK 278 m (76).
• Earnings per share, before and after dilution, increased to SEK 3.64 (1.00).
• Cash flow from operating activities amounted to SEK 227 m (295).

January – June 2021

• Net sales increased by 10 percent to SEK 4,995 m (4,550). Organic growth was 13 percent while currency had a negative impact on net sales by 4 percent.
• Adjusted¹⁾ operating profit increased to SEK 549 m (406).
• Operating profit increased to SEK 549 m (332).
• Adjusted¹⁾ operating margin increased to 11.0 percent (8.9).
• Operating margin increased to 11.0 percent (7.3).
• Profit for the period increased to SEK 418 m (212).
• Earnings per share, before and after dilution, increased to SEK 5.47 (2.78).
• Cash flow from operating activities amounted to SEK 287 m (321).

 1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.

Lindab’s President and CEO, Ola Ringdahl, comments:

“Lindab continued its strong development during the second quarter. Sales reached a record high level, both for the Group and for the two largest business areas Ventilation Systems and Profile Systems. The operating margin of 13.0 percent is the highest margin for a single quarter since 2008.

During the second quarter, Lindab experienced a very high demand for its products in all markets in Europe. Lindab has a robust supply chain and safe access to raw materials. Customers have appreciated the delivery security and it is a great competitive advantage, especially in times when there is a shortage of steel and other materials.

All business areas have developed positively. Both Ventilation Systems and Profile Systems report the highest sales for a quarter historically. Building Systems, which struggled in headwinds during the pandemic, has double-digit organic growth during the quarter. All in all, this takes us to the highest sales level Lindab has had in a single quarter.

Record high operating margin
Operating profit has continued to improve, thanks to strong sales, increased efficiency from the investment program, and good cost control. We are also fast to implement price adjustments as steel prices continue to rise. The second quarter result was another step towards sustainably reaching an operating margin of at least 10 percent. During the last twelve months, the adjusted operating margin was 11.0 percent, which is a margin level that Lindab has not achieved previously.

The acquisitions make a positive contribution
In May, Lindab signed an agreement to acquire the Norwegian ventilation company H.A. Helgesen & Sønner and in July the Swedish roofing specialist Kami was acquired. The companies complement our current operations well and contribute with well-managed, highly profitable businesses. In recent quarters, we have acquired several quality companies. These have started to contribute to Lindab’s growth and earnings during the quarter and we are very pleased with the development so far.

Investments for increased efficiency and safety
The ongoing investment program is having increasingly noticeable effects. Efficiency and capacity are increasing, which has helped us manage the high demand. In addition, the safety of our employees increases and the work environment is improved when manual steps are removed. During the quarter, the investments in our home area on the Bjäre Peninsula entered an intensive phase with expanded capacity at Lindab Steel for handling of steel, a new logistics centre for construction products and an Experience centre for training, meetings and product exhibitions.

Well positioned for the future
For the remainder of 2021, we believe in continued high construction activity. High steel prices will bring challenges, but during the second quarter Lindab has shown that we have an organisation that can handle the situation. Through our close cooperation with the largest players in the steel industry, we have a good view of the expected market development. Our assessment is that the shortage of steel and thus high steel prices will persist, at least for some time into the next year. We plan the business and our pricing accordingly.

The long-term demand for Lindab’s ventilation products benefits from an increased interest in solutions that create healthy indoor environments and reduce energy consumption. Thanks to Lindab’s product portfolio and strong presence throughout Europe, we are well positioned to continue to develop the business in a positive direction in both the short and long term.”

Press and analyst meeting:

A live webcast will be held at 1:00 pm (CEST) on 20 July. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Madeleine Hjelmberg, Acting CFO.

To access the audiocast, please call:
+46 (0) 8 505 583 69
or +44 333 300 9261

The webcast can be followed live at:
https://tv.streamfabriken.com/lindab-q2-2021

This disclosure contains information that Lindab is obliged to make public pursuant to the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 20-07-2021 07:40 CET.

Contacts:

Ola Ringdahl
President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00

Madeleine Hjelmberg
Acting CFO
E-mail: madeleine.hjelmberg@lindab.com
Phone: +46 (0) 431 850 00

Catharina Paulcén
Head of Corporate Communications
E-mail: catharina.paulcen@lindab.com
Mobile: +46 (0) 701 48 99 65

Lindab in brief

Lindab is a leading ventilation company in Europe. Lindab develops, manufactures, markets and distributes products and systems for energy-efficient ventilation and a healthy indoor climate. The products are characterised by high quality, ease of installation and environmental thinking.

The Group had sales of SEK 9,166 m in 2020 and is established in 24 countries with approximately 5,000 employees. The Nordic region accounted for 48 percent of sales in 2020, Western Europe for 32 percent, Central- and Eastern Europe for 18 percent and Other markets 2 percent. 
 
The share is listed on the Nasdaq Stockholm, Mid Cap, under the ticker symbol LIAB.