During the first quarter, operating profit and operating margin continued to improve. Sales were in line with the previous year, adjusted for currency. The two largest business areas, Ventilation Systems and Profile Systems, showed organic sales growth. It is a sign of strength considering that the first quarter of last year was relatively unaffected by the pandemic. Cash flow from operating activities continues to improve.
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,
“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
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,
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,
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
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