Second quarter 2010

• Net sales rose by 7 percent to SEK 1,384 million (1,294)
• Operating profit (EBITA) increased to SEK 165 million (95)
• The operating margin (EBITA) rose to 11.9 percent (7.3)
• Adjusted for a single larger write-down of accounts receivable, the operating margin (EBITA) amounted to 12.5 percent
• Profit after tax rose to SEK 99 million (23)
• Cash flow from operating activities amounted to SEK 106 million (185)

January-June 2010

• Net sales rose by 11 percent to SEK 2,482 million (2,235)
• Operating profit (EBITA) increased to SEK 194 million (68)
• The operating margin (EBITA) rose to 7.8 percent (3.0)
• Adjusted for items affecting comparability, the operating margin (EBITA) increased to 8.7 percent (3.3)
• Earnings after tax rose to SEK 100 million (negative 38)
• Cash flow from operating activities amounted to negative SEK 112 million (14)
• Inwido AB acquired 34 percent of the shares in Inwido Denmark, largely concluding the work of acquiring the outstanding minority shareholdings in subsidiaries

CEO Håkan Jeppsson comments:

“It is pleasing to note that today’s results from Inwido are its best so far quarterly operating earnings, at SEK 165 million, which is an improvement of 74 percent on the same period last year. Adjusted for a SEK 8 million single larger write-down of accounts receivable, the operating margin amounted to 12.5 percent. Sales also rose to SEK 1,384 million, representing an organic growth of 12 percent adjusted for currency effects. Order bookings also improved compared to the same period last year.

In general, it is the Nordic markets that are continuing to show strong performance in both the consumer and industry markets. However, sales in the U.K. also increased during the quarter. Poland and Russia continue to show reduced volumes. 

During the quarter a number of European countries, including the U.K., initiated budget cuts, which could have a negative effect on economic recovery. However, our experience is that the economic climate is gradually improving, and we believe this will lead to a steady increase in consumer demand.

The combination of our strategic focus on consumer sales, a strong balance sheet and more stable market conditions mean that Inwido is well positioned for a good second half of 2010.”

Read the entire report in the attached pdf