First quarter of 2017 in line with our growth targets
First quarter of 2017
- Consolidated net sales increased by 17 percent to SEK 380 m (324), of which 10 percentage points was due to structural effects from acquisitions in the first quarter
- Net sales for Product & Solutions increased by 16 percent to SEK 299 m (259) and net sales for Installation Services increased by 21 percent to SEK 96 m (79)
- Operating profit (EBIT) before items affecting comparability decreased to SEK 9 m (12)
- Operating profit (EBIT) decreased to SEK 5 m (8)
- Operating cash flow amounted to SEK -17 m (-48)
- Earnings per share before and after dilution were SEK -0.06 (0.01)
Message from the CEO
First quarter 2017 in line with our growth targets
Consolidated net sales for the first quarter rose by 17 percent compared with the first quarter last year, from SEK 324 m to SEK 380 m. Sales were supported by good weather conditions, the fact that Easter falls into the second quarter this year, and the contribution of our two recent acquisitions, EPDM Systems and SPT-Painting.
EBIT before items affecting comparability, at SEK 9 m was slightly below last year’s profit of SEK 12 m. This is mainly due to increased administrative costs following the June 2016 IPO and increased raw material costs compared with the corresponding period in 2016. We see continued price increases in our main raw materials, which will be more visible as of the second quarter of 2017. This has, in turn, required us to increase the sales prices to our customers. Both acquisitions during the first quarter of 2017 contributed positively to EBIT.
In April we made our third acquisition this year, thus delivering on our commitment to developing our business through both internal and external growth. The Finnish company LA-Kattohuolto specialized in roofing services and maintenance and has annual sales of SEK 20 m. In combination with our operations in KerabitPro and AL-Katot, this acquisition allows us to further expand our current roofing and service maintenance offering, a segment benefiting from growing demand.
Both of our operating segments contributed to our consolidated sales growth of 15 percent. While our Products & Solutions operating segment reported a sales increase of 16 percent, our Installation Services operating segment achieved an increase of 21 percent, based on improved demand in Finland.
Within our Products & Solutions segment, all countries contributed positively. Denmark continued to see a favorable demand trend. Our Swedish operations showed a turnaround in sales with growth of 8 percent compared with the preceding year. Sales in Norway continued with the strong momentum seen in recent quarters. The Finnish market continued its improvement seen since early 2016 with sales growth of 9 percent. SealEco showed a stable sales performance compared to last year, with additional sales from EPDM Systems, the recent acquisition.
Installation Services in Finland achieved a slight increase in sales in the first quarter 2017 compared with the corresponding quarter in 2016 and comparable operations. The recent acquisition, SPT-Painting, contributed with sales as of 1 February 2017. Our Danish franchise companies continued to perform well during the first quarter, with an improved EBIT contribution compared to the preceding year.
Earnings per share for the quarter were -0.06 SEK (0.01).
I am pleased to welcome a new company, LA-Kattohuolto of Finland, to our Group. Roofing services and maintenance have seen, and will continue to see, growing demand in the future. With their specific expertise and in combination with our existing operations, LA-Kattohuolto will significantly strengthen our capacity to serve our customers in this field.
Good integration of newly acquired companies is critical to our Group’s success. I am pleased to report that the integration of EPDM Systems and SPT-Painting, the most recent members of our Group, is going well.
Vejen, 9 May 2017
President and CEO
A conference call for investors, analysts and media will be held today, 9 May 2017, at 10:00 a.m. CET and can be joined online at www.nordicwaterproofing.com. Presentation material for the call will be available on the website one hour before the call.
To participate, please dial: From the United Kingdom: +44 20 3008 9801 From Denmark: +45 82 33 31 78 From Sweden: +46 8 566 426 92
Further information can be obtained from
Martin Ellis, President and CEO tel: +45 31 21 36 69 Jonas Olin, CFO tel: +46 708 29 14 54 Anders Antonsson, Investor Relations tel: +46 709 99 49 70
This information is information that Nordic Waterproofing Holding A/S 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 9 May 2017, 08:00 a.m. CET.