The CEO comments:
"It is gratifying to state that Inwido began the new year the same way as we finished the last. The quarter that is clearly the year’s weakest in seasonal terms turned out well, with operating profit of SEK 29 million, representing solid improvement compared with the same period in 2014. In addition, we continue to see favourable growth of 12 percent in operations when adjusted for currency effects.

The main reason for the favourable profit for the quarter is the significant new order bookings that we experienced in the latter part of 2014. This, combined with continued improvements in efficiency, lifted the gross margin markedly during the quarter. Now, as in 2014, however, we are seeing considerable variations between our various geographic markets and segments. In the first quarter, growth in order bookings slowed as had been expected. Happily enough, however, in our priority consumer segments, we saw a continued positive development, particularly in Denmark, Sweden and Ireland. In the future, however, we expect to see continued variations between markets and geographic regions and this may also be noted during the current year.

As an important part of our long-term strategy, we continued our process of realignment in Sweden, the purpose of which is to further reduce our exposure to parts of the new construction market in favour of the private consumer market. In line with our strategy, sales to consumers already account for 70 percent of our total sales, although in Sweden the consumer side accounts for only just over 50 percent. This realignment is important. However, the change may mean that we will see variations in volumes and sales. We are also working continuously to establish new sales channels and introduce new products and concepts, requiring investments that could naturally impact earnings in the short term.

Parallel with this, we are continuing to work actively to become more efficient, flexible and agile. This should permeate the entire organisation. In this way, we can further improve our margins – and long-term profitability.

Looking ahead, our business may be affected by the complex and uncertain fiscal situation in many parts of Europe. Uncertainty regarding entitlement to tax deductions, loan terms, subsidies and taxation can be decisive for future investment and renovation decisions. The outcome of the upcoming elections in the UK and Denmark could also change the conditions for the industry as a whole. At the same time, it is important to affirm that there remains continued strong underlying demand for both renovations and new housing."

MALMÖ, 27 APRIL 2015

Håkan Jeppsson
 
President and CEO

Read the full Q1 report in the pdf attached