Lindab’s Interim Report January - June 2022: Record strong sales and earnings

During the second quarter, Lindab reported its highest quarter ever in terms of sales, driven by organic and acquired growth. Both business areas, Ventilation Systems and Profile Systems, reached record sales and profit levels. German Felderer and Dutch R-Vent were acquired during the quarter, corresponding to a total annual sales of SEK 1,200 m.

As of 2022 Lindab’s business consists of business area Ventilation Systems and Profile Systems. Unless otherwise stated the comparative numbers exclude the divested business area Building Systems, which was divested in December 2021.

Second quarter 2022

• Net sales increased by 27 percent to SEK 3,171 m (2,501). Organic growth was 14 percent. Structural changes contributed positively by 10 percent.
• Adjusted1) operating profit increased by 17 percent to SEK 402 m (344).
• Operating profit increased to SEK 402 m (344).
• Adjusted1) operating margin amounted to 12.7 percent (13.8).
• Operating margin amounted to 12.7 percent (13.8).
• Profit for the period increased to SEK 300 m (268).
• Earnings per share before dilution increased to SEK 3.92 (3.51) and after dilution to SEK 3.91 (3.51).
• During the quarter, Felderer AG and R-Vent Netherlands B.V. were acquired, corresponding to an annual sales of SEK 1,200 m. In June, Lindab signed an agreement to acquire Muncholm A/S. The acquisition was completed in July.

The comparable numbers for the following key figures include the business divested in previous year.

• Profit for the period increased to SEK 300 m (278).
• Earnings per share before dilution increased to SEK 3.92 (3.64) and after dilution to SEK 3.91 (3.64).
• Cash flow from operating activities amounted to SEK 161 m (227).

January - June 2022

• Net sales increased by 28 percent to SEK 5,904 m (4,600). Organic growth was 18 percent. Structural changes contributed positively by 7 percent.
• Adjusted1) operating profit increased by 34 percent to SEK 742 m (552).
• Operating profit increased to SEK 723 m (552).
• Adjusted1) operating margin increased to 12.6 percent (12.0).
• Operating margin increased to 12.2 percent (12.0).
• Profit for the period increased to SEK 536 m (425).
• Earnings per share before dilution increased to SEK 7.01 (5.56) and after dilution to SEK 6.99 (5.56).

The comparable numbers for the following key figures include the business divested in previous year.

• Profit for the period increased to SEK 536 m (418).
• Earnings per share before dilution increased to SEK 7.01 (5.47) and after dilution to SEK 6.99 (5.47).
• Cash flow from operating activities amounted to SEK -52 m (287).

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 delivers a very strong second quarter. Sales exceeded SEK 3 billion for the first time in a quarter. Operating profit reached a new record level, thanks to high growth and efficiency. The pace of operations has been high throughout the period and we expect stable demand for the rest of the year. The acquisitions of Felderer and R-Vent create a strong platform for Lindab in the strategically important ventilation markets Germany and the Netherlands.

Strategic acquisitions in Germany and the Netherlands

The acquisition of German Felderer was completed in April after approval by the anti-trust authorities. In June, R-Vent was acquired and Lindab thus establishes its own presence in the Netherlands. These two ventilation companies have a total annual turnover of SEK 1.2 billion and they strengthen Lindab’s market position and growth opportunities in two of Europe’s most important ventilation markets. During July, Lindab also completed the acquisitions of Muncholm and Girovent. We look forward to welcoming more well-managed companies to Lindab in the future.

A strong company with a clear future direction

Since 2018, Lindab has undergone a thorough transformation with increased focus on the core business. Unprofitable units have been restructured or divested. Investments have been made to increase capacity, efficiency and safety. Responsibilities have been moved closer to the customer, which has made Lindab more agile and customer-oriented. Since 2020, we have completed 15 acquisitions, which have contributed with more than SEK 2 billion in annual sales. At the same time, business with a total of SEK 1.2 billion in sales have been divested. Overall, these measures have resulted in a doubling of profitability. We will continue to build on Lindab’s strengths and grow the business both organically and through acquisitions. We have an organisation that can make fast decisions and adapt the business when the world around us changes. Lindab has proven itself during the corona pandemic and its aftermath with raw material shortages and increasing prices, and now also after Russia’s invasion of Ukraine.

Increased focus on energy saving

In the long term, we see an increased demand for energy-efficient ventilation due to high energy prices and the green transition. Ventilation, heating and cooling account for a large part of a building’s operating costs and high energy prices should increase the pace of the renovation wave required for the EU to meet its climate goals.

Stronger demand for sustainable solutions

We notice an increasing demand for sustainable products. The highest tightness class is becoming increasingly important when choosing ventilation system, and the larger customers are actively selecting suppliers with strong sustainability profiles. This benefits Lindab, which has a competitive offering in this area. During the quarter, one of our partners in fossil-free steel, H2 Green Steel, came one step closer to starting its production. Lindab is a volume guarantor for both SSAB and H2 Green Steel and plans to launch a green product line when fossil-free steel becomes available in a few years.

Lindab has an experienced and motivated organisation, strong presence throughout Europe and a stable supply chain. We are well positioned to continue to develop the business in a positive direction in the future.”

Press and analyst meeting:

A live webcast will be held at 10:00 am (CEST) on July 20. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Jonas Arkestad CFO.

To access the webcast, please call:

Phone +46 (0) 8 505 163 86

Alternatively phone +44 203 198 4884

Pin code 3914322#

The webcast can be followed live at: https://tv.streamfabriken.com/lindab-q2-2022

__________________

This disclosure contains information that Lindab is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 20-07-2022 07:40 CET.

Contacts:

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

Jonas Arkestad
CFO
E-mail: jonas.arkestad@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 9,648 m in 2021 and is established in 21 countries with approximately 4,900 employees. The Nordic region accounted for 55 percent of sales in 2021, Western Europe for 29 percent, Central Europe for 14 percent and Other markets for 2 percent.
 
The share is listed on the Nasdaq Stockholm, Large Cap, under the ticker symbol LIAB.