Fourth quarter

• Net sales amounted to SEK 2,423 million (2,273), up 7 percent. Organic growth amounted to 5 percent.
• Total order intake adjusted for currency increased by 20 percent (up 19 percent organically) and the order backlog as of December 31 rose by 29 percent to SEK 2,490 million (1,937).
• Operating EBITA rose to SEK 296 million (290) and the operating EBITA margin amounted to 12.2 percent (12.7).
• EBIT amounted to SEK 261 million (272) and the EBIT margin amounted to 10.8 percent (12.0).
• Earnings per share before and after dilution amounted to SEK 3.17 (3.20) and SEK 3.16 (3.20) respectively.
• Net debt amounted to a multiple of 1.0 in relation to operating EBITDA (0.7 excluding IFRS 16).

January-December 2024

• Net sales amounted to SEK 8,838 million (8,970), down 1 percent. Organic growth amounted to negative 6 percent.
• Operating EBITA totaled SEK 953 million (1,027) and the operating EBITA margin amounted to 10.8 percent (11.4).
• EBIT amounted to SEK 850 million (978) and the EBIT margin amounted to 9.6 percent (10.9).
• Return on operating capital amounted to 12.7 percent (15.4).
• Earnings per share before and after dilution amounted to SEK 9.29 (11.72) and SEK 9.26 (11.72) respectively.
• The Board of Directors proposes a dividend of SEK 5.50 (6.50).

CEO comments:

I am pleased to say that Inwido is growing again. For the first time since the fourth quarter of 2022, we are witnessing organic sales growth. The fact that this growth is also taking place in all business areas, despite challenges in several markets, and while maintaining good margins, is a show of strength.

During the fourth quarter of the year, net sales increased by 7 percent (up 5 percent organically) to SEK 2,423 million (2,273). Order intake remained strong and increased for the third consecutive quarter, this time organically by 19 percent, mainly driven by the project market in Business Area Western Europe. Order intake also increased in all business areas except for Scandinavia, where order intake remained unchanged. In our assessment, Inwido is continuing to win market share in its main markets. Although leading macroeconomic indicators have become more positive and demand in some market segments has started to rise, several of our business units are still facing challenges in the form of low demand and fierce price pressure, above all in Finland, Norway, and the UK. In light of this, Inwido is maintaining good margins thanks to our increasingly efficient operational platform, our leading market positions and our governance model.

In order to provide external stakeholders with a clearer picture of the Group's sales, order intake and order book, Inwido is introducing a new market segment split as from the fourth quarter: Consumer/Project. This change, which was announced in connection with the Capital Markets Day in December, is mainly due to the large project orders that Sidey Group in particular, within Business Area Western Europe, wins from time to time. These orders, unlike the majority of the rest of the Group, are often significant in size and run for several years. A good example is the record order for North Lanarkshire Council, initially amounting to SEK 300 million over two years, that Sidey Group won in December 2024. With the new market split, we are better able to illustrate the fluctuations that occur within Project Sales, while Consumer Sales tend to be more stable.

The focused work aimed at reducing the Group's climate impact and achieving the established SBTi goals is proceeding well. An important milestone has now been reached, with scope 3, greenhouse gas emissions that take place outside the company's direct control and operations, being reported for the first time. Overall for Scope 1, 2, and 3, greenhouse gas emissions fell by 15 percent relative to the base year, 2022. All key performance indicators for Health and Safety are developing positively, which is pleasing to note. The number of accidents decreased significantly as a result of an effective and well-established process.

Business Area Scandinavia is continuing to deliver high margins. Higher sales combined with improved gross margins and cost control raised the operating EBITA margin to 17.1 percent (15.0). Our larger Danish units delivered at a high level, while the Swedish consumer market also began to show signs of a cautious recovery.

Business Area Eastern Europe is still being affected by low volumes within new build, which is the primary reason for the margins having more than halved. On the other hand, the renovation market appears to have bottomed out, as can be seen from order intake, which increased by 10 percent during the quarter. At the end of the period, the order backlog was 26 percent higher compared with the same period last year.

Business Area e-Commerce is growing and its profitability is increasing. Sales for the fourth quarter rose to SEK 270 million, up 10 percent compared with the corresponding period in the preceding year. Operating EBITA almost doubled to SEK 23 million (12) and the operating EBITA margin rose to 8.6 percent (5.0) during the quarter.

Business Area Western Europe performed well in the fourth quarter, with a record order in Scotland and strong performance in Ireland. During the fourth quarter, profitability increased and operating EBITA ended up at SEK 54 million (46), while the operating EBITA margin rose to 11.6 percent (10.8).

Outlook:

Inwido is on an exciting journey of growth towards sales of SEK 20 billion by 2030. Step by step, we are moving in the right direction, strengthened by factors such as increased sales and order intake, as well as an ever more efficient operational platform. The main external drivers of Inwido's profitable growth, both in the short and the long term, are a normalization of demand within renovation, the management of pent-up demand within new build, and the green transition to energy-efficient housing in the EU. In addition to these external factors, the Group is focusing on product development, internal cost and sales synergies, as well as value-creating acquisitions.

In an uncertain environment, our outlook is supported by leading macro economic indicators and the positive momentum we have enjoyed since the second quarter of last year. All in all, this gives us confidence for the year we have just started.

MALMÖ, FEBRUARY 4, 2025
Fredrik Meuller, President and CEO