First quarter 2021
- Net sales decreased by 4 percent to SEK 2,248 m (2,332). Organic growth was 0 percent while currency impacted net sales by -5 percent.
- Operating profit increased to SEK 193 m (184). No one-off items or restructuring costs were reported.
- Operating margin increased to 8.6 percent (7.9).
- Profit for the period increased to SEK 140 m (136).
- Earnings per share, before and after dilution, increased to SEK 1.83 (1.78).
- Cash flow from operating activities increased to SEK 60 m (26).
- Steel prices continued to increase during the quarter. Lindab has long-term purchasing agreements, creating strategic room for manoeuvre. Price adjustments to customers have been made at an early stage.
- In March, Jonas Arkestad was appointed new Chief Financial Officer (CFO). He will start his new position no later than September 2021.
Lindab’s President and CEO, Ola Ringdahl, comments:
“Lindab starts the year in a strong way. The positive trends from the end of previous year continued into the beginning of 2021. The two largest business areas, Ventilation Systems and Profile Systems, showed organic growth. The operating margin continued to improve compared with the corresponding period last year and was record high for a first quarter.
During the first quarter of this year, construction activity continued to recover, especially in Western and Southern Europe. Lindab has the Nordic region as its largest market and construction activity in this region has been stable for a long time. In Eastern Europe, on the other hand, construction activity is still significantly affected by the pandemic. During the first quarter of last year, Lindab’s sales were relatively unaffected. It is therefore a sign of strength that Lindab is showing organic growth in two of three business areas compared with the first quarter last year.
One of Lindab’s major competitive advantages is high availability and delivery performance. It has been even more important in these uncertain times. Our robust supply chain has helped us keep our promises to customers even when countries shut down.
Record high operating margin
The operating margin was record high for the first quarter. During the last twelve months, the adjusted operating margin was 10.2 percent. Good cost control with decentralised decision-making is one important reason.
The acquisitions make a positive contribution
During the first quarter, Lindab did not complete any acquisitions. There are still several discussions ongoing and the strategy of acquiring profitable, well-managed companies remains unchanged. As the companies have good profitability and skilled management at the time of the acquisition, they can quickly contribute to Lindab. In the first quarter, the acquisitions made during the previous year had a positive impact on earnings.
Investments for a sustainable business
At the end of 2020, we intensified our sustainability work. Under the concept “Lindab - For a better climate”, we focus on activities aiming at creating healthy indoor environments, as we spend as much as 90 percent of our time indoors. “For a better climate” is also about reducing the environmental impact from customers by offering smart products of the highest quality. Buildings account for a large part of Europe’s CO2 emissions and we can have a direct impact by offering energy-efficient solutions that, for example, adapt the ventilation to how the premises are used. In addition, we must conduct sustainable business ourselves, in terms of climate impact and working environment as two examples. In our internal sustainability work, the ongoing investment program plays a major role. It is the largest investment program in Lindab’s history. We can already see effects in the form of safer and more efficient production environments. During the first quarter, we started a couple of large investment projects where we expand and modernise existing production and logistics in our home area on the Bjäre Peninsula in Skåne, Sweden.
Well positioned for the future
For the remainder of 2021, we believe in increased construction activity as societies reopen. High steel prices will bring challenges, but Lindab’s organisation has routines for dealing with ups and downs in commodity prices. We have been quick to adjust prices towards customers and we have long-term purchasing agreements, creating strategic room for manoeuvre.
The long-term demand for Lindab’s ventilation products benefits from an increased interest in solutions that create healthy indoor environments and reduce energy consumption. Thanks to Lindab’s product portfolio and strong presence throughout Europe, we are well positioned to continue to develop the business in a positive direction in both the short and long term.”
Press and analyst meeting:
A live audiocast will be held at 1:00 pm (CEST) on 5 May. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Madeleine Hjelmberg, Acting CFO.
To access the audiocast, please call:
Phone +46 (0) 8 566 427 03
Alternatively phone +44 333 300 9268
The audiocast and presentation can be followed live at: https://tv.streamfabriken.com/lindab-q1-2021