Good start to the year both financially and strategically
First quarter
- Net sales increased to SEK 1,999 million (1,811), up 10 percent. Organic growth amounted to 10 percent.
- Total order intake adjusted for currency increased by 13 percent and the order backlog as of March 31 increased by 19 percent to SEK 2,660 million (2,236).
- Operating EBITA rose to SEK 111 million (91) and the operating EBITA margin rose to 5.5 percent (5.0).
- EBIT increased to SEK 92 million (72) and the EBIT margin increased to 4.6 percent (4.0).
- Earnings per share before and after dilution increased to SEK 0.65 (0.37) and SEK 0.65 (0.37) respectively.
- Net debt amounted to a multiple of 1.1 in relation to operating EBITDA (0.8 excluding IFRS 16).
CEO Comments:
It cannot have escaped anyone's attention that the first three months of the year have seen a macroeconomic roller coaster of historic proportions. Although Inwido has no direct exposure to the USA, indirect disruptions may arise, for example in the form of delayed project starts, hesitant consumers and increased volatility in the supply chain.
In this context, having just completed one year in my role as President and CEO, I can proudly state that Inwido is in a strong position. In the first quarter of 2025, we continued on our profitable growth journey. Both sales and order intake increased, margins and earnings were strengthened, while net debt was further reduced. Overall, this is a sign of strength in both the short and long term. During the first quarter of the year, net sales increased by 10 percent to SEK 1,999 million. Order intake remained good and increased for the fourth consecutive quarter, this time by 13 percent, mainly driven by the project business. Operating EBITA increased to SEK 111 million, resulting in an operating EBITA margin of 5.5 percent (5.0), higher than in the normal situation before the pandemic.
I am also satisfied with the progress the Group is making on a number of strategically important priorities, such as portfolio optimization and increased internal collaboration. Inwido's operations are being strengthened by the green transition, and I claim that the EU's focus on sustainability will continue despite the geopolitical uncertainty. The issue of energy efficiency is absolutely central and has a significant value upside. The recent increase in the subsidy for repair, refurbishment and extension work in Sweden also gives hope that consumers will increase their renovations this year, in which case energy-efficient windows are a sensible choice.
Acquisitions are a key building block for achieving Inwido's growth targets, and our level of activity in M&A has increased over the past year. We are conducting a number of parallel discussions in both existing and new geographical markets. Some of these discussions have been terminated prematurely as we will not deviate from our high quality standards when it comes to acquisition targets and transaction structure.
The focused work aimed at reducing the Group's climate impact and achieving the specified SBTi targets is producing results. Energy consumption is now lower in relation to volume. The positive trend regarding Health and Safety also continues.
Business Area Scandinavia is reporting a stronger renovation market. The majority of the business units reported higher sales and improved margins. The Danish business units perform strongly, and some of the units in Sweden also showed clear improvements in sales and profitability during the quarter.
Business Area Eastern Europe reported increased sales and gross margin at the start of the year. The increase was mainly attributable to the business area's largest business unit, Pihla Group in Finland, as well as their increased sales to housing unions. The level of activity in the new build market in Finland remains low.
Business Area e-Commerce, along with e-commerce in general, experienced lower activity levels in the first quarter. Both gross margin and operating profit figures were negatively affected, prompting a number of structural measures to strengthen competitiveness going forward.
Business Area Western Europe performed well during the quarter. Despite the continued weak market, particularly in the UK, all the business units reported increased sales. A number of major projects in Scotland and Ireland have been delayed during the quarter, in part due to local government budget cuts and storm Eowyn. This has affected efficiency and, as a result, margins to some extent during the quarter.
Outlook:
Inwido is continuing along the path towards unchanged financial targets. The external drivers of profitable growth, as communicated in the year-end report, remain unchanged, and at the same time we are strengthened by our own initiatives for organic growth. Our prospects continue to be supported by leading macroeconomic indicators and our own healthy order book. Geopolitical unrest can of course have an impact, but fundamentally we are looking forward to the rest of the year with confidence.
MALMÖ, APRIL 24, 2025
Fredrik Meuller,
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 April 24, 2025 at 7:45 a.m. CET.
For more information, please contact:
Fredrik Meuller, President and CEO
Tel. +46 (0) 734 22 70 11
Peter Welin, CFO and deputy CEO
Tel. +46 (0) 703 24 31 90
About Inwido:
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 35 business units with approximately 4,700 employees in twelve countries. In 2024 group sales amounted to SEK 8.8 billion with an operating EBITA margin of 10.8 percent. Inwido has been listed on Nasdaq Stockholm since 2014. Follow Inwido on LinkedIn.
