Interim Report, January–September 2018

Continued sales growth and improved earnings

Third quarter of 2018

  • Consolidated net sales increased by 20 percent to SEK 778 m (646), of which organic growth amounted to 3 percent. Acquisitions contributed by 12 percent and currency by 5 percent
  • Net sales in Products & Solutions amounted to SEK 575 m (457) and Installation Services to SEK 235 m (218)
  • EBITDA before items affecting comparability increased by 7 percent to SEK 103 m (96)
  • Operating profit (EBIT) before items affecting comparability increased by 5 percent to SEK 87 m (83)
  • Operating profit (EBIT) amounted to SEK 86 m (81)
  • ROCE before items affecting comparability on rolling 12 months basis was 14.4 percent (15.8)
  • Operating cash flow amounted to SEK 123 m (103)
  • Earnings per share before and after dilution were SEK 2.97 (2.70)

January–September 2018

  • Consolidated net sales increased by 22 percent to SEK 1,988 m (1,629), of which organic growth amounted to 2 percent. Acquisitions contributed by 16 percent and currency by 4 percent
  • Net sales in Products & Solutions amounted to SEK 1,507 m (1,186) and Installation Services to SEK 555 m (522)
  • EBITDA before items affecting comparability increased by 17 percent to SEK 220 m (188)
  • Operating profit (EBIT) before items affecting comparability increased by 5 percent to SEK 172 m (163)
  • Operating profit (EBIT) amounted to SEK 165 m (150)
  • Operating cash flow amounted to SEK 103 m (75)
  • Earnings per share before and after dilution were SEK 5.27 (4.77)

Message from the CEO

Continued sales growth and improved earnings 

Consolidated net sales for the third quarter rose by 20 percent compared with last year, from SEK 646 m to SEK 778 m. Acquisitions contributed by 12 percent, organic growth was 3 percent and currency exchange rate effects was 5 percent.

At SEK 87 m, EBIT before items affecting comparability was above last year’s profit of SEK 83 m, an increase of 5 percent. At the same time, EBITDA increased 7 percent to SEK 103 m compared with SEK 96 m in the corresponding period in the preceeding year.

Our third acquisition this year, Veg Tech, was completed in the beginning of July, in line with our commitment to develop our business towards sustainable and environmentally efficient solutions. The warm and unusually dry summer has been challenging for VegTech and required unusual watering efforts to secure the growing of sedum and other plants. With the actions taken, we were able to manage the challenges and fulfilled our delivery committments.

The consolidated net sales growth of 20 percent in the third quarter was driven by pick-up effects from the strong roofing and infrastructure markets in Sweden and Norway, but also the prefabricated elements business in Norway. While our Products & Solutions operating segment reported a sales increase of 26 percent, our Installation Services operating segment increased 7 percent.

Within our Products & Solutions segment, Sweden and Norway showed a strong development and continued pick-up effects, while Denmark continued in a strong market although growth was lower than previous year. We have implemented a second sales price increase for our bitumen based products with effect from the end of the third quarter, but this will unfortunately not fully offset the most recent bitumen price increases as bitumen is not hedged for 2018. The prefabricated elements business in Norway continues to develop well and enjoys strong order intake, while we have experienced some delays from our customers in Denmark which have had a negative effect on deliveries and production efficiency in the quarter.

The profit improvement program within our flat roof installation services business in Finland is developing according to plan within the larger unit, KerabitPro, and our efforts, including a more selective approach towards roofing projects and the execution of the projects, have shown positive financial effects as of mid-2018. At the same time, we experience a somewhat weaker market in Finland. Our Danish franchise companies continued to perform well during the third quarter, with strong order books and an EBIT contribution in line with the preceding year.

Our acquisition strategy and selective approach continues, and we seek to generate value for our stakeholders through the following strategies:

  • enhance our product and service offering for our existing customers, and apply geographic leverage to newly acquired product and service categories
  • benefit from mega trends in the construction industry: sustainable building solutions, energy efficiency, renewable energy sources, and site efficiency through increased exposure to prefabrication, and
  • forward integrate in order to increase exposure to end customers.

By widening and enhancing our products and services with new product categories, we foresee that the Group will increasingly become a one stop shop opportunity for customers seeking comprehensive solutions for building and infrastructure protection. We intend to maintain our focus on small to medium sized companies presenting good synergistic potential with our existing businesses.

Vejen, 1 November 2018
Martin Ellis,
President and CEO

Conference call

A conference call for investors, analysts and media will be held today, 1 November 2018, at 10:00 a.m. CET 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 20 3008 9806
  • From Denmark: +45 35 44 55 75
  • From Sweden: +46 8 566 193 53

Further information can be obtained from

Martin Ellis, President and CEO
tel: +45 31 21 36 69

Jonas Olin, CFO & Investor Relations
tel: +46 708 29 14 54

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 1 November 2018, 08:00 a.m. CET.

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