Strong quarter with 4 acquisitions
First quarter of 2021
- Consolidated net sales increased by 5 percent to SEK 704 m (670), organic growth amounted to 2 percent, acquisitions with 7 percent and currency had a negative impact of -4 percent.
- Net sales in Product & Solutions amounted to SEK 563 m (539) and in Installation Services to SEK 152 m (151)
- Gross profit increased to SEK 183 m (158), Gross margin increased to 26.1% (23.7%)
- EBITDA increased to SEK 50 m (32), EBITDA margin increased to 7.1% (4.8%)
- Operating profit (EBIT) increased to SEK 22 m (2), EBIT margin increased to 3.1% (0.4%)
- ROCE increased to 15.9 percent (15.6)
- Cash flow from operating activities decreased to SEK -88 m (-86)
- Earnings per share before and after dilution were SEK 0.47 (-0.37) and SEK 0.47 (-0.37), respectively
Message from the CEO
Strong quarter with 4 acquisitions
Consolidated net sales in the first quarter increased by 5 percent compared to the previous year, from SEK 670 million to SEK 704 million. Organic growth was 2 percent, the impact of acquisitions was 7 percent and currency translation effects were -4 percent. After an initial negative impact of harsh winter weather, most of our markets ended the quarter strongly.
EBIT for the first quarter amounted to SEK 22 million, compared to SEK 2 million for the corresponding period last year. The positive development of the operating result is mainly explained by operational efficiency and good cost control. Our Return on Capital Employed at 15.9 percent (15.6) remains above target. Our cash flow from operating activities was in line with the previous year of SEK -88 million (-86).
In recent weeks we have seen significant input cost increases from our suppliers throughout our business portfolio. While this has led us to announce sales price increases in most of our businesses, we do expect some degree of margin compression in the coming months for some of our businesses.
We have made four acquisitions during the quarter, and retain a solid balance sheet.
The net sales organic growth of 2 percent (14) in the first quarter are explained by good sales in the Products & Solutions operating segment, which organically grew 8 percent (17) while the Installation Services operating segment decreased organically by -23 percent (+7).
In the Products & Solutions operating segment, the Bitumen-based waterproofing business showed double-digit growth in Norway while remaining below the level of the first quarter last year in Denmark, Sweden and Finland as a result of the more severe winter weather conditions in 2021.
SealEco, our synthetic rubber proofing business, had a strong first quarter, with double-digit growth rates, especially in Benelux.
Taasinge group, our prefabricated wood elements business had significant double-digit growth compared to the previous year. The profit improvement program has resulted in a significant turn-around within the Taasinge Group. In both Denmark and Norway, we have a good level in the order books.
In the Installation Services operating segment, where sales are mainly generated in Finland, operations were affected by the more severe winter weather conditions.
Net sales decreased organically by -24 percent, mainly because of weather conditions. Both floor coverings and roof maintenance showed good growth.
Our Danish franchisees continue to experience a stable and strong market and during the first quarter had an EBIT contribution and order book similar to last year.
As previously, we have not seen any significant effects from the Covid-19 pandemic. Our focus is on protecting the health of our employees, taking responsibility for our communities, and securing our full supply capability for our customers
During the quarter we have made the following acquisitions:
- Waterproofing contracting: Byggpartner AS (Norway)
- Ponds and landscaping: Gauris B.V. (Netherlands)
- Prefabricated wooden elements: Seikat Oy (Finland)
- Green solutions in urban environments: Urban Green AB (Sweden)
We continue to focus on organic growth, profitability, and selective acquisitions. Our balance sheet is strong, and we continue to have the capacity to carry out acquisitions. We have a strategic focus to promote sustainable building solutions and enhance our service and product portfolio.
Helsingborg, 27 April 2021
President and CEO
A conference call for investors, analysts and media will be held today, 27 April 2021, at 10:00 a.m. CEST and can be joined online at www.nordicwaterproofing.com. 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 9271|
|From Denmark:||+45 78 72 32 51|
|From Sweden:||+46 8 505 583 73|
|Further information can be obtained from|
|Martin Ellis, President and CEO||phone: +45 31 21 36 69|
|Per-Olof Schrewelius, CFO & Investor Relations||phone: +46 707 82 79 58|
This information is information that Nordic Waterproofing Holding AB 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 27 April 2021, 08:00 a.m. CET.
This report contains forward-looking statements which are based on the current expectations of the management of Nordic Waterproofing. Even though management believes that the expectations reflected in these forward-looking statements are reasonable, no assurances can be given that these expectations will be realized. Therefore, the financial results may differ significantly from those indicated in the forward-looking statements due to, among other things, changes in economic, market-related and competition-related conditions, changes to rules and regulations and other governmental measures, exchange rate fluctuations and other factors.