Published: 2018-10-23 07:45:00 CEST
Interim report January-September 2018
This information is such that Inwido AB (publ) is obliged to publish in
accordance with the EU market abuse regulation. The information was submitted by
the below contact persons for publication on 23 October 2018 at 7:45 a.m. CET.

Better third quarter than last year

Third quarter of 2018

  · Net sales rose to SEK 1,682 million (1,559), representing an increase of
8 percent. Organic growth was a negative 1 percent
  · EBITA increased to SEK 200 million (172) after items affecting comparability
of a negative SEK 2 million (0), and the EBITA margin grew to 11.9 percent
  · Operating EBITA rose to SEK 202 million (172) and the operating EBITA margin
rose to 12.0 percent (11.0)
  · Earnings per share before dilution increased to SEK 2.31 (1.85)
  · The acquisition of Profin in Finland was completed on 2 July
  · Most of the Group’s loans were refinanced
  · New governance model for the Inwido Group effective from 1 January 2019 –
full responsibility for operations and profit for each subsidiary

January-September 2018

  · Net sales rose to SEK 4,802 million (4,597), representing an increase of
4 percent. Organic growth was a negative 2 percent
  · EBITA amounted to SEK 420 million (446) after items affecting comparability
of a negative SEK 22 million (negative 2), and the EBITA margin was 8.7 percent
  · Operating EBITA amounted to SEK 442 million (448) and the operating EBITA
margin was 9.2 percent (9.7)
  · Earnings per share before dilution increased to SEK 5.16 (4.65)
The CEO comments:
"Inwido’s third quarter progressed largely as expected. It is gratifying to note
that 25 of Inwido’s 29 profit units performed better this quarter than in 2017,
which is also reflected in operating profit having increased to SEK 202 million
in the quarter. This shows that the effort we have invested in various
initiatives in recent years, such as increased cost control, has had the desired
effect. However, we are not satisfied with a few of the larger units’ earnings.

Sales increased by 8 percent compared with the corresponding period last year,
to SEK 1,682 million. Organically, sales decreased by 1 percent. The operating
EBITA margin increased to 12 percent, compared with 11 percent in the
corresponding period the preceding year.

The warm summer in the Nordic region generally dampened consumers’ eagerness to
buy, which led to increased competition in the windows industry and thereby
pressure on gross margins. The Industry market has also cooled, with fewer
construction projects starting and fewer permits being issued. Inwido has coped
with the market situation relatively well. Adjusted for acquisitions, order
bookings decreased by 2 percent, and when also adjusted for currency effects,
order bookings were 7 percent lower.

It is also worth mentioning that the Group’s indebtedness decreased during the
period, despite the acquisition of Profin, which is positive, particularly in
generating opportunities for further acquisitions. The acquisitions we have made
in recent years continue to develop well, contributing to Inwido’s development.

Differing market situations – e-commerce growing increasingly important
Denmark is progressing very strongly, Poland has shifted to profitability, and
both the UK and Ireland are currently developing well, although uncertainty has
increased in the UK with the Brexit negotiations. During the year, Norway has
become profitable. Inwido’s e-commerce continues to increase sharply, with
reported sales in this unit increasing by 45 percent during the quarter.

It is in Sweden and Finland in particular that the windows market is arduous,
with increased competition and lower market prices. In Sweden, lower housing
prices and fewer sales of homes have increased the pressure on all actors, at
the same time as digitalization is driving changes in customer and consumer
behaviours. We are tackling this trend with a series of initiatives. One example
is the “Elitfönster På Plats” concept, in which consumers can buy Sweden’s most
popular window brand and receive installation assistance. We also offer
accessories and spare parts through Elitfönster’s online shop, investing in the
brand while aiding builders’ merchants and carpenters by introducing new digital

Future prospects
We anticipate somewhat weaker market growth in Europe over the upcoming periods.
We foresee a continued strong market in Denmark, however, and e-commerce has
good opportunities for growth. In our assessment, the competition in Sweden and
Finland will persist. High production capacity in both countries, combined with
a weaker Industry market and new players, exerts pressure on gross margins.

In the fourth quarter, we will safeguard the implementation of Inwido’s new
governance model to simplify and streamline the Group. This should be viewed,
above all, in light of changing market conditions and customer behaviours. By
assigning the units full responsibility for their operations and profitability,
it will be possible to respond even faster in each sub-market to further
increase customer focus and efficiency."


Håkan Jeppsson
President and CEO

Read the full report in the pdf attached
For more information, please contact:
Inwido AB
Håkan Jeppsson, President and CEO Phone: 46 (0)10-451 45 51 or 46 (0)70-550 15
Peter Welin, CFO Phone: 46(0)70-324 3190 or 46(0)10-451 45 52 E-mail:
About Inwido
Inwido is Europe’s largest supplier of windows and a leading door supplier. The
company has operations in Denmark, Finland, Norway, Sweden, Austria, Estonia,
Ireland, Lithuania, Romania, Poland and the UK, as well as exports to a large
number of other countries. The Group markets some 20 strong local brands
including Elitfönster, SnickarPer, Hajom, Outline, Tiivi, Pihla, Diplomat and
Sokolka. Inwido has approximately 4,400 employees and generated sales of
slightly more than SEK 6.4 billion in 2017. The Group's headquarters are located
in Malmö, Sweden. For further information, please visit