News
February 9, 2021

Lindab’s full year report 2020: Lindab achieves the target of 10 percent operating margin for the full year


During the fourth quarter, operating profit and margin increased significantly. All three business areas increased the operating margin, which is a sign of strength during this period. Ventilation Systems showed organic growth. For the full year, adjusted operating margin improved to 10 percent, despite reduced sales due to covid-19. Lindab has strong cash flow and a good financial position, which enabled continued investments and additional acquisitions.

Fourth quarter 2020

  • Net sales decreased by 8 percent to SEK 2,314 m (2,526). Organically, sales decreased with 4 percent.
  • Adjusted operating profit increased to SEK 248 m (212). 1)
  • Operating profit increased to SEK 248 m (212).
  • Adjusted operating margin increased to 10.7 percent (8.4). 1)
  • Operating margin increased to 10.7 percent (8.4).
  • Profit for the period increased to SEK 186 m (143).
  • Earnings per share, before and after dilution, increased to SEK 2.43 (1.88).
  • Cash flow from operating activities amounted to SEK 356 m (366).
  • In October, Lindab acquired the Swedish company Ekovent, a leading manufacturer of ventilation and fire & smoke protection products.
  • In December, Lindab acquired the Norwegian ventilation company Aer Faber, which has a strong presence in the Oslo area.

Full year 2020

  • Net sales decreased by 7 percent to SEK 9,166 m (9,872). Organically, sales decreased with 6 percent.
  • Adjusted operating profit increased to SEK 916 m (915). 1)
  • Operating profit amounted to SEK 846 m (915).
  • Adjusted operating margin increased to 10.0 percent (9.3). 1)
  • Operating margin amounted to 9.2 percent (9.3).
  • Profit for the period amounted to SEK 596 m (678).
  • Earnings per share, before and after dilution, amounted to SEK 7.80 (8.89).
  • Cash flow from operating activities increased to SEK 1,129 m (1,017).
  • The Board of Directors proposes a dividend of SEK 3.40 (1.75) per share, in accordance with the dividend policy. The dividend is proposed to be split and paid out on two occasions, in May and in November.
  1. Adjusted operating profit/operating margin does not include significant one-off items and restructuring cost.

Lindab’s President and CEO, Ola Ringdahl, comments:

“The ventilation company Lindab ends 2020 with yet another strong quarter. With an operating margin of 10 percent for the full year, Lindab reaches the highest operating margin in more than ten years. We are entering 2021 with an adapted cost base, an efficient organisation and a strong financial position.

Sales gradually recovered during the second half of the year as construction activity regained some of its momentum in countries that were hit hard by lockdowns in the spring. We have benefited from having the Nordic region as our largest market and the region has had a stable development throughout the year.

Lindab offers high quality products, with high availability and unmatched delivery reliability. We have proven this, even when the circumstances in some cases have been challenging. Our robust supply chain has helped us to keep our promises to customers, even during times of lockdown.

The target of a 10 percent operating margin has been achieved
Since a few years, Lindab has had a long-term target of reaching an operating margin of 10 percent over a business cycle. For the full year 2020, we reached this level for the first time. Achieving the margin target during a year marked by covid-19, and the resulting
sales decline, is a sign of strength we can be proud of.

Strong financial position enables investments and acquisitions
During the year, we also continued to reduce our debt, thanks to a strong underlying cash flow. A healthy financial position allowed us to continue developing Lindab, even under the prevailing circumstances caused by covid-19.

During the year, we invested more than SEK 400 m to strengthen efficiency and increase production capacity. At the same time, we have sharpened our sustainability work and invested in health and safety measures for our employees throughout our operations. We are implementing the largest investment program in Lindab’s history and look forward to reaping the benefits from this for many years to come.

Our strong financial position has also enabled acquisitions. During the fourth quarter, we welcomed two companies to Lindab. Ekovent is a leading Swedish manufacturer of ventilation and fire protection products. Aer Faber is a Norwegian ventilation company with a strong presence in the Oslo area. In 2020, we completed four acquisitions of ventilation companies, we divested unprofitable subsidiaries, and we invested in an exciting technology company. We acquire well-managed companies who add immediate value to Lindab. At the same time, we contribute to their operations with large-scale sourcing, an extensive distribution network and high-quality products.

Increased dividend
Lindab is a shareholder-friendly company. The dividend during 2020 was maintained at the previous year’s level, SEK 1.75 per share, despite the challenges posed by covid-19. For 2021, the Board has proposed a total dividend of SEK 3.40 per share, which meets Lindab’s goal of distributing minimum 40 percent of the net profit to shareholders. For us, it is important to safeguard the interest of our shareholders also in challenging times.

Well positioned for the future
The long-term demand for Lindab’s ventilation products benefits from an increased interest in solutions that create healthy indoor environments and reduce energy consumption. It’s about sustainability.

EU directives for renovation and new construction of buildings, as well as various new national support packages, are expected to increase the long-term demand for high-quality ventilation systems. This applies both in new construction and in renovation and upgrading of
existing buildings.

Thanks to Lindab’s product portfolio and strong presence throughout Europe, this provides favourable conditions for continued growth.

Thank you to all customers who continue to choose Lindab.

Thank you to all employees for your courageous efforts during 2020.”

Press and analyst meeting:

A live audiocast will be held at 1:00 pm (CET) on 9 February. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Madeleine Hjelmberg, Acting CFO.

To access the audiocast, please call:
Phone +46 (0) 8 505 583 55
Alternatively phone +44 333 300 9266

The audiocast and presentation can be followed live at:
https://tv.streamfabriken.com/lindab-q4-2020
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