Nordic Waterproofing’s business is affected by seasonal variations, the months of January, February and December being the weakest months. During the period 2012–2015, average sales in these three months accounted for approximately 16 percent of sales, whilst sales in the other nine months accounted for approximately 84 percent of sales.
In general, there is a certain degree of stockpiling during the winter months, which transfers to a stock depletion during the summer months as a result of the increased activity in the market. The seasonal variations may affect the company’s turnover and earnings for the different quarters. If winter comes early, it may, inter alia, have the effect that many of the company’s customers choose to postpone planned projects, which, in turn, has an effect on annual earnings. The same applies if the winter is long and the season starts late in the year.
Furthermore, combined with customized production, the seasonal variations entail capacity planning, which must partly be carried out in advance.