July 18, 2019
Lindab International AB (publ): Lindab's Interim Report for the Second Quarter 2019
Second quarter 2019
- Net sales increased by 7 percent to SEK 2,569 m (2,392), of which organic growth was 5 percent.
- Adjusted1) operating profit increased by 61 percent to SEK 2382) m (148). Adjusted1) operating margin increased to 9.3 percent (6.2).
- Operating profit amounted to SEK 2382) m (129).
- Profit for the period increased to SEK 181 m (91).
- Earnings per share, before and after dilution, increased to SEK 2.38 (1.19).
- Cash flow from operating activities amounted to SEK 1772) m (51).
- In April Lindab acquired the British ventilation company Ductmann Ltd.
January - June 2019
- Net sales increased by 7 percent to SEK 4,884 m (4,545), of which organic growth was 4 percent.
- Adjusted1) operating profit increased by 71 percent to SEK 4302) m (252). Adjusted1) operating margin increased to 8.8 percent (5.5).
- Operating profit amounted to SEK 4302) m (200).
- Profit for the period increased to SEK 323 m (136).
- Earnings per share, before and after dilution, increased to SEK 4.23 (1.79).
- Cash flow from operating activities amounted to SEK 2562) m (93).
- Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.
- Excluding the effect of implemented accounting standard, IFRS 16 Leases, operating profit for the quarter amounted to SEK 232 m and the cash flow from operating activities amounted to SEK 123 m for the quarter. Correspondingly operating profit for the period January-June amounted to SEK 417 m and cash flow from operating activities amounted to SEK 149 m.
Lindab’s President and CEO, Ola Ringdahl, comments:
”During my first year as CEO of Lindab Group, I have visited 50 business units in 17 countries. It has taught me a lot about Lindab's various businesses, but I still have a lot left to familiarise myself with. It is clear to me that Lindab has many strengths to build upon. There is a clear customer focus, considerable technical expertise and a well-developed infrastructure of production, warehouses, stores and sales offices. Our products and services are appreciated by our customers and we have a strong position in our core businesses.
Our largest business area, Ventilation Systems, is active all over Europe and I see good opportunities for continued growth in many customer segments in most geographies. Profile Systems has its main market in the Nordics and a handful of countries in Eastern Europe. We will continue to develop our business in the countries and in the product areas where we are strong. Building Systems delivers positive results thanks to better project management but also through increased focus on the countries where we have critical mass.
Over the past 12 months, we have prioritised measures that strengthen profitability and increase our long-term competitiveness. This work is now starting to show results. We focus on the products, customer groups and geographies where we can achieve good growth and sustainable profitability. The rate of investment increases significantly and we invest more in automation in order to deliver efficiently and quickly. Product development in our core areas has accelerated. We are getting ready to look more actively at possible add-on acquisitions, especially within Ventilation Systems.
Let me now comment on the development for Lindab during the second quarter of the year. Organic sales growth was satisfactory and amounted to 5 percent during the quarter. Adjusted operating profit increased by 61 percent to SEK 238 m (148) due to increased sales, improved gross margin and good cost control. It is positive that the increase in operating profit in the quarter comes from all three business areas, and that almost all units improve significantly.
Ventilation Systems continues to deliver sales growth with improved profitability. Organic growth amounted to 4 percent, and adjusted operating profit increased to SEK 163 m (109). All regions show positive growth.
During the quarter, Profile Systems had weaker sales, compared with a strong quarter in 2018. The organic sales development was negative by 7 percent, mainly due to reduced sales of industrial building projects and steel buildings in the Nordic region. Adjusted operating profit remained at a stable level and amounted to SEK 60 m (58), with an improved operating margin.
Building Systems had very good organic growth of 34 percent in the quarter. The final phase of a few major projects with large deliveries in Central Europe contributed to the strong sales. Adjusted operating profit improved to SEK 27 m (-5).
We can summarise a strong quarter and a good first half of the year for Lindab. We continue to build on this, with high ambitions to improve. We want to express our sincere appreciation to all Lindab employees for their significant efforts.”
This is information that Lindab International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out below, at 07:40 am (CEST) on 18 July 2019.
Ola Ringdahl, President and CEO
Phone: +46 (0) 431 850 00
Malin Samuelsson, CFO
Mobile: +46 (0) 701 45 46 85
Lindab in brief:
Lindab develops, manufactures, markets and distributes products and system solutions for simplified construction and improved indoor climate. The products are characterised by high quality, ease of assembly, energy efficiency and environmentally friendly design and are delivered with high levels of service. Altogether, this provides greater customer value.
The Group had sales of SEK 9,326 m in 2018 and is established in 32 countries with approximately 5,100 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential construction accounts for 20 percent of sales. During 2018, the Nordic region accounted for 45 percent, Western Europe for 33 percent, CEE/CIS (Central and Eastern Europe) for 20 percent and Other markets for 2 percent of total sales.
The share is listed on the Nasdaq Stockholm List, Mid Cap, under the ticker symbol LIAB.