Lindab’s Interim Report January - March 2022: Record strong start of the year

Sales remained high during the first quarter and the adjusted operating margin was further strengthened. Both the Ventilation Systems and Profile Systems business areas reported strong organic sales growth and high profitability.

First quarter 2022

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.

• Net sales increased by 30 percent to SEK 2,733 m (2,099). Organic growth was 23 percent.
• Adjusted1) operating profit increased by 63 percent to SEK 340 m (208).
• Operating profit increased to SEK 321 m (208).
• Adjusted1) operating margin increased to 12.4 percent (9.9).
• Operating margin increased to 11.7 percent (9.9).
• Profit for the period increased to SEK 236 m (157).
• Earnings per share before dilution increased to SEK 3.09 (2.05) and after dilution to SEK 3.08 (2.05).
• Three acquisitions were announced during the quarter representing an annual sales of approximately SEK 785 m.

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

• Profit for the period increased to SEK 236 m (140).
• Earnings per share before dilution increased to SEK 3.09 (1.83) and after dilution to SEK 3.08 (1.83).
• Cash flow from operating activities amounted to SEK -213 m (60).

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 started 2022 with another strong quarter. Sales growth was high thanks to a combination of good demand for Lindab’s products and necessary price increases. The operating margin increased as an effect of focus on core operations, implemented investments and proactive pricing. Lindab delivers a record strong first quarter which, by a good margin, exceeds the financial targets.

Steel prices have risen further during the first quarter, from the already high prices during the second half of last year. Lindab has handled the price increases well and has prioritized delivery performance, which is one of Lindab’s most appreciated customer benefits. Long-term agreements and well-established relationships with steel suppliers have secured access to steel. Inventory levels have increased as a consequence of higher material prices and Lindab’s ambition to provide customers with the best possible availability.

Well prepared for an uncertain environment

In February, the world was hit by an attack on democracy and freedom with Russia’s invasion of Ukraine. Over the past three years, we have divested or discontinued most of the operations in Russia and Belarus, as part of focusing sales and purchases to Europe. At the beginning of 2022, Russia, Belarus and Ukraine accounted for 0.5 percent of our sales. The remaining operations in Russia are now being phased out. Activities and financial donations are being carried out all around Lindab to support Ukraine and those fleeing the war.

The war in Ukraine has led to an increase in the already high prices of energy, fuel and raw materials. We are preparing for an uncertain economic situation with a risk of reduced construction activity. We are cautious with taking on new costs and evaluate each project carefully. Lindab’s good earnings capacity and strong financial position make us well prepared to handle the uncertain world we are in.

Lindab benefits from an increased focus on energy savings

We see increased demand for energy-efficient ventilation when energy prices rise. Heating, cooling and ventilation account for a large part of a building’s operating costs and high energy prices can increase the pace of the renovation wave needed for the EU to meet its climate goals. Demand for efficient ventilation may partly offset the uncertain economic outlook for the construction industry.

The investment program continues

Our investment program continues to be implemented according to plan. It results in efficiency gains while helping us to deal with the growing shortage of labour in large parts of Europe. In addition, modernisation of our production is an important step in continuing to improve the working environment for our employees.

Strengthened position in Germany with acquisition of Felderer

In early March, we announced the acquisition of the ventilation distributor Felderer in Germany. The German market has great potential for Lindab. Like in the Nordic countries, buildings are well insulated and need efficient, high-quality ventilation. In addition, German authorities are focusing on reducing energy consumption in both new and existing buildings. It is a perfect combination for Lindab. With the acquisition, sales in Germany will more than double and Lindab gains a strong position throughout the country.

We look forward to more acquisitions in 2022 to strengthen our growth. With our presence throughout Europe and a robust supply chain, we are well positioned to continue to develop our business in a positive direction, even in turbulent times.”

Press and analyst meeting:

A live webcast will be held at 1:00 pm (CEST) on April 28. 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) 8 505 583 55

Alternatively phone +44 333 300 9272

The webcast can be followed live at: https://tv.streamfabriken.com/lindab-q1-2022

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This disclosure contains information that Lindab is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 28-04-2022 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 20 countries with approximately 4,500 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.