INTERIM REPORT, January-March 2020

First quarter of 2020

  • Consolidated net sales increased by 18 percent to SEK 670 m (569), of which organic growth amounted to 14 percent. Acquisitions contributed by 3 percent and currency by 1 percent
  • Net sales in Product & Solutions amounted to SEK 539 m (445) and in Installation Services to SEK 151 m (138)
  • EBITDA increased to SEK 32 m (18)
  • Operating profit (EBIT) increased to SEK 2 m (-7)
  • ROCE increased to 13.2 percent (12.9)
  • Cash flow from operating activities amounted to SEK -86 m (-61)
  • Earnings per share before and after dilution were SEK -0.37 (-0.44)

Message from the CEO

Strong start to 2020. Impact of Covid-19 to be expected.

Nordic Waterproofing had a strong first quarter with good growth in both sales and financial results. Consolidated net sales for the first quarter rose by 18 percent compared with last year, from SEK 569 m to SEK 670 m. Organic growth was 14 percent, acquisitions contributed by 3 percent and currency exchange rate effects was 1 percent.

EBIT was positive in the quarter at SEK 2 m compared with a negative SEK -7 m previous year, mainly driven by the increased volume.

Although we had a strong start of the year with good increase in sales in the first quarter we have on March 27, 2020 revised our forward-looking statement for 2020. The impact on our Group from the Covid-19 outbreak is hard to predict but it will likely have a dampening effect on sales as a result of the general economic development. Currently we are not in a position to provide guidance on operating profit (EBIT) for this year.

The consolidated net sales growth of 18 percent in the first quarter was driven by strong sales, in particular, from roofing in Sweden, Finland and Denmark but also from our Veg Tech business. While our Products & Solutions operating segment reported a sales increase of 21 percent, our Installation Services operating segment increased 9 percent.

As communicated earlier, a comprehensive profit improvement program is being implemented in the Taasinge Group, our prefabricated elements business. The effects from this program have not yet materialized. In both Taasinge Elementer in Denmark and RVT in Norway we have strong order books at the end of the quarter.

Distri Pond, part of the SealEco group and acquired in February 2019, started the year with slightly lower sales than last year due to the significant Covid-19 impact in Belgium.

The volumes in the legacy business within bitumen roofing were well above the first quarter of last year for the Nordic countries. We believe that we have seen market share gains in the Nordics and see a continued strong demand in these markets.
Our SealEco rubber membrane business is the only one having seen Covid-19 impact so far, being exposed to the market slowdown in the UK and Belgium.

Within the Installation Services segment, activity was good in the flat roofing business. Our Danish franchise companies continue experiencing a strong market and performed very well in the first quarter, with strong order books and an EBIT contribution above the corresponding period last year.

We continue our focus on organic growth, profitability and selective acquisitions. Given the current uncertain situation regarding the impact from the Covid-19 outbreak, we have increased our focus on monitoring order intake, cost and customer credit control. We have also taken measures to safeguard access to raw material to guarantee supply capabilities to our customers. Our current acquisition projects are on hold in the very short-term, awaiting better visibility with respect to Covid-19.

We are monitoring the developments of the impact from Covid-19 carefully. Measures are taken daily to safeguard the health of our employees, to take responsibility for communities and for our customers. It is encouraging to see that all our larger production facilities are operating and that the supply chain has, to date, functioned without any significant disruption. I am proud of, and impressed by, the way our managers and employees have dealt with this challenge, which shows the strength in our decentralized business model.

Given the current difficulty in assessing the effects of Covid-19, we are not in a position to provide guidance for 2020. We have substantial preparedness for a rapidly changing situation in our operations. In these uncertain times, we are focusing on securing our capacity to deliver on in accordance with our customers’ requirements, while preparing to immediately reduce our cost base should demand drop.

Vejen, 4 May 2020

Martin Ellis,
President and CEO

Conference call

A conference call for investors, analysts and media will be held today, 4 May 2020, at 10:00 a.m. CET and can be joined online at Presentation materials for the call will be available on the website one hour before the call.


To participate, please dial:

From the United Kingdom:        
+44 33 3300 9268
From Denmark:
+45 78 72 32 52
From Sweden:

+46 8 505 583 58


Further information can be obtained from

Martin Ellis, President and CEO
tel: +45 31 21 36 69
Per-Olof Schrewelius, CFO & Investor Relations
tel: +46 707 82 79 58

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 4 May 2020, 08:00 a.m. CET.