“Maintaining and further strengthening our position in the Nordics as well as having a systematic approach to M&A is at the core of our strategy. Our ambition is to create value through selected acquisitions in Europe and by extracting synergies. Being the industry leader in innovation is central to maintaining our strong market positions. Furthermore, initiatives to improve cost efficiency and flexibility will continue to have a positive impact on margins and bring us closer to achieving our financial targets”, says Inwido’s CEO, Håkan Jeppsson.

The fragmented European windows and doors market is characterized by a high degree of made to measure, local preferences, demanding logistics and seasonality. To maintain and further strengthen Inwido’s leading position in its key markets, as well as achieve sustainable high margins, the company coordinates centrally and acts locally. This is showcased through a number of strategic choices, such as to focus on the local supply chain, pragmatic sharing of group resources, a decentralized decision process and emphasis on local leadership.

In Sweden, Inwido’s largest market, the shift towards the more profitable consumer segment continues, whilst maintaining the company’s strong market position. The overall market fundamentals in Sweden are currently positive. The Danish underlying market has enjoyed a strong recovery since 2014 and Inwido’s key focus is to win additional market share with high margins and to improve cost efficiency. In Finland, Inwido is the market leader in a consolidated but weak underlying market. The key to maintaining high profitability in Finland is to leverage on the company’s strong position, widen the product offering and differentiate through innovation, installation and service. The Norwegian economy has been hit hard by dropping oil prices and consumer confidence has declined. The market is highly competitive and Inwido has implemented a number of measures to improve operational flexibility and to reduce the cost base. Going forward, increasing top line will be the key priority. 

E-Commerce is a new direct sales channel for Inwido and was initiated through the acquisition of JNA and SPAR in Denmark 2014. E-Commerce is a relatively immature channel in the European windows and doors markets in which Inwido is currently enjoying a first mover advantage. The company has identified 8-10 attractive European markets and is aiming to roll out its E-Commerce business in these markets in the coming years, starting with Germany.

As market volumes have declined across markets in the last few years, Inwido has implemented a number of structural measures to improve efficiency and lower cost levels and thereby creating a more flexible organization with a stable margin development. Similarly, the company has focused on improving its positions by building strong brands and enhancing its product offerings across segments. In conclusion, Inwido is now a stable business, well positioned for continued profitable growth.

Finally, Inwido reiterates its financial targets:

• Above market growth through organic growth in existing markets and through selective acquisitions and initiatives in Europe
• Operating EBITA-margin of 12%
• The net interest bearing debt should not, other than temporarily, exceed 2.5x EBITDA
• To pay its shareholders an annual dividend that corresponds to approximately 50 per cent of net income with the company’s financial position, cash flow and future outlook being taken into consideration 

Read the full press release in the attached PDF.