Growth and profitability exceed long-term targets
The good development during the first half of the year continues in the third quarter of 2022. Inwido increases net sales by 26 percent to SEK 2,386 million, while operating EBITA increases to SEK 297 million (275), the highest profit so far in a third quarter. The operating EBITA margin ended up at 12.5 percent.
"The good development since the first half of the year continues. The growth exceeds our long-term growth target of reaching 20 billion by 2030 and the return on operating capital is also above the target. Cash flow is favorable, and the already strong balance sheet has been further strengthened. Altogether, I feel that Inwido is stable in a time pervaded by an increasingly uncertain external environment," comments President and CEO Henrik Hjalmarsson, who also notes that the order backlog increased by 6 percent while order intake in the quarter decreased by 1 percent.
In business area Scandinavia, growth was high, profitability improved, and the market position strengthened. The Eastern Europe business area showed strong growth with good development in the largest business unit in Finland and in the Polish business. Good growth, but somewhat weaker margins sum up Business Area Western Europe. e-Commerce has developed weaker, mainly due to lost momentum following the capacity shortage in the first half of the year. Efficiency in production is gradually improving, at the same time e-commerce consumers were more cautious than during the Covid boom.
“The third quarter shows good sales, improved profits over last year, and a strong order backlog. At the same time, there is some uncertainty around order intake. Over the year, the price of input material has risen sharp-ly, something we countered with price increases. We foresee prices of glass remaining high over the year, while prices for wood are falling back. Consumer confidence is generally at record low levels in Europe, affect-ing the willingness to invest. At the same time, with energy prices at record highs, there has probably never been a better time to invest in our energy efficient products," Henrik Hjalmarsson concludes in the Q3 report.