Lindab International AB (publ): Lindab’s Interim Report for the Fourth Quarter and Full Year 2019

Fourth quarter 2019 

• Net sales increased by 6 percent to SEK 2,526 m (2,384), of which organic growth was 3 percent.
• Adjusted 1) operating profit increased by 23 percent to SEK 212 2) m (173). Adjusted 1) operating margin increased to 8.4 percent (7.3).
• Operating profit amounted to SEK 212 2) m (147).
• Profit for the period increased to SEK 143 m (106).
• Earnings per share, before and after dilution, increased to SEK 1.88 (1.38).
• Cash flow from operating activities increased to SEK 366 2) m (238).
• In December, the Board of Directors decided to update the financial targets and the dividend policy.

January – December 2019

• Net sales increased by 6 percent to SEK 9,872 m (9,326), of which organic growth was 3 percent.
• Adjusted 1) operating profit increased by 44 percent to SEK 915 2) m (634). Adjusted 1) operating margin increased to 9.3 percent (6.8).
• Operating profit amounted to SEK 915 2) m (547).
• Profit for the period increased to SEK 678 m (394).
• Earnings per share, before and after dilution, increased to SEK 8.89 (5.16).
• Cash flow from operating activities increased to SEK 1,017 2) m (593).
• The Board of Directors proposes a dividend of SEK 3.60 (1.75) per share, which is in line with the updated dividend policy. The dividend should be equivalent to minimum 40 percent of the company’s net profit after tax.

1. Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.
2. Excluding the effect of implemented accounting standard, IFRS 16 Leases, operating profit amounted to SEK 205 m during the quarter and the cash flow from operating activities amounted to SEK 312 m. Operating margin excluding IFRS 16 amounted in the quarter to 8.1 percent. Operating profit excluding IFRS 16, for the period January-December, amounted to SEK 888 m and cash flow from operating activities amounted to SEK 803 m. Operating margin excluding IFRS 16 amounted for the full year to 9.0 percent. The comment only refers to year 2019.

Lindab’s President and CEO, Ola Ringdahl, comments:

“Lindab increased the adjusted operating profit in the quarter by 23 percent to 212 MSEK (173). Profit for the period increased by 36 percent, and profit for the full year of 2019 increased by 72 percent to 678 MSEK (394). We can hereby conclude a very successful year for Lindab and we see many good opportunities on the road ahead.

Ventilation Systems delivered sales and operating profit in line with the historically strong fourth quarter of 2018. Since the middle of 2019, there has been a slowdown in demand in the Nordics and the UK. The growth in Central and Eastern Europe has partly offset these effects. The business area continues to keep a high pace in the implementation of the initiated investment program, with emphasis on further automation of production units as well as increased capacity in production and logistics.

Profile Systems had a strong development in the quarter with an organic growth of 11 percent. The strong growth and improved gross margin led to an increase of the operating profit to 85 MSEK (56). The increased sales is largely connected to industrial projects in Sweden and Eastern Europe. Sales in this project business can fluctuate over the quarters.

Building Systems had substantial deliveries to large projects in the quarter. Organic growth amounted to 24 percent. The operating profit increased to 15 MSEK (0) in the quarter, as a consequence of high volume with good control of the project margins throughout the project cycle.

The Lindab Group can look back at 2019 as a year where many small and large improvements from all three business areas have contributed to strengthen both the financial profit and our operating performance. The focus on profitability is visible in the organisation and most of our operating units have improved their results in a significant way during the year.

During 2020 the Lindab Group will maintain the focus on improved profitability and customer satisfaction. Continued decentralisation of resources and responsibilities is a prerequisite to succeed. The higher investment pace will continue and gradually start to deliver efficiency improvements. With improved profitability we can also increase the efforts in product development. A strong balance sheet opens up possibilities for Lindab to look more actively at acquisition opportunities.

I would like to take the opportunity to thank all colleagues for their great efforts during 2019 and we look forward to another developing year for Lindab, for our employees and for our customers.”

End
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Contact

Ola Ringdahl, President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00

Malin Samuelsson, CFO
E-mail: malin.samuelsson@lindab.com
Mobile: +46 (0) 701 45 46 85

Lindab in brief

Lindab develops, manufactures, markets and distributes products and system solutions for simplified construction and improved indoor climate. The products are characterised by high quality, ease of assembly, energy efficiency and environmentally friendly design and are delivered with high levels of service. Altogether, this provides greater customer value.

The Group had sales of SEK 9,872 m in 2019 and is established in 31 countries with approximately 5,200 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential construction accounts for 20 percent of sales. During 2019, the Nordic region accounted for 43 percent, Western Europe for 35 percent, CEE/CIS (Central and Eastern Europe) for 21 percent and Other markets for 1 percent of total sales.

The share is listed on the Nasdaq Stockholm List, Mid Cap, under the ticker symbol LIAB.

This information is information that Lindab International AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2020-02-06 07:40 CET.