Year-end report, January – December 2018

A solid quarter and best year ever

Fourth quarter of 2018

  • Consolidated net sales increased by 24 percent to SEK 692 m (558), of which organic growth amounted to 6 percent. Acquisitions contributed by 14 percent and currency by 4 percent
  • Net sales in Products & Solutions amounted to SEK 516 m (382) and Installation Services to SEK 198 m (192)
  • EBITDA before items affecting comparability increased by 16 percent to SEK 66 m (57)
  • Operating profit (EBIT) before items affecting comparability increased by 18 percent to SEK 52 m (45)
  • Operating profit (EBIT) amounted to SEK 47 m (43)
  • Operating cash flow amounted to SEK 89 m (89)
  • Earnings per share before and after dilution were SEK 1.03 (0.95)

January–December 2018

  • Consolidated net sales increased by 23 percent to SEK 2,680 m (2,187), of which organic growth amounted to 3 percent. Acquisitions contributed by 15 percent and currency by 5 percent
  • Net sales in Products & Solutions amounted to SEK 2,023 m (1,568) and Installation Services to SEK 752 m (714)
  • EBITDA before items affecting comparability increased by 16 percent to SEK 286 m (248)
  • Operating profit (EBIT) before items affecting comparability increased by 8 percent to SEK 224 m (208)
  • Operating profit (EBIT) amounted to SEK 212 m (194)
  • ROCE before items affecting comparability was 14.8 percent (15.5)
  • Operating cash flow amounted to SEK 192 m (164)
  • Earnings per share before and after dilution were SEK 6.30 (5.71)
  • The Board proposes a cash dividend of SEK 4.00  (3.75) per share

Message from the CEO

A solid quarter and best year ever

I am proud to report our best year ever, in terms of both sales and financial results. Consolidated net sales for the year was SEK 2,680 m, an increase by 23 percent, and EBITDA before items affecting comparability increasing by 16 percent to SEK 286 m.

Consolidated net sales for the fourth quarter rose by 24 percent compared with last year, from SEK 558 m to SEK 692 m. Acquisitions contributed by 14 percent, organic growth was strong at 6 percent and currency exchange rate effects was 4 percent.

At SEK 52 m, EBIT before items affecting comparability was above last year’s profit of SEK 45 m, an increase of 18 percent. At the same time, EBITDA increased 16 percent to SEK 66 m compared with SEK 57 m in the corresponding period in the preceeding year.

All of our acquisitions this year – Ugilt, RVT and Veg Tech – have performed well and contributed to the growth of Nordic Waterproofing’s sales and results. During the autumn, RVT has finalized its façade element deliveries to Mjöstornet, the highest wooden structure in the world. The mild weather and late winter arrival allowed Veg Tech to deliver green vegetation solutions almost the entire fourth quarter, following the challenges after the warm and unusually dry summer.

The consolidated net sales growth of 24 percent in the fourth quarter was driven by strong sales in roofing and infrastructure in Sweden, Norway and Denmark, but also the prefabricated elements business in Norway. While our Products & Solutions operating segment reported a sales increase of 35 percent, our Installation Services operating segment increased 3 percent.

Within our Products & Solutions segment, Sweden, Norway and Denmark showed a strong development and positively affected by mild weather. The second sales price increases for our bitumen based products which were implemented after summer, have started to show effect in the fourth quarter.

The prefabricated elements business in Norway continues to develop well and enjoys strong order intake, while we have continued to experience some delays from our customers in Denmark. Although deliveries and production efficiency has increased in the quarter, we still experience some challenges in optimizing our production planning.

The profit improvement program within our flat roof installation services business in Finland has continued also during the fourth quarter. Our efforts, including a more selective approach towards roofing projects and the efficient execution of the projects, have shown positive financial effects as of mid-2018. At the same time, we have experienced a somewhat weaker development of our floor coating business, where a profit improvement program has now been started. Our Danish franchise companies continued to perform well also during the fourth quarter, with strong order books and an EBIT contribution above the preceding year.

In 2019 we will continue to focus on organic growth, profitability and selective acquisitions. Organic growth is expected to come particularly from the development of our recent acquisitions, building on our new platforms in prefabricated elements, Taasinge group, and green roofs and surfaces, Veg Tech. Regarding acquisitions, we maintain our focus on small to medium sized companies presenting good synergistic potential with our existing businesses.

Vejen, 12 February 2019

Martin Ellis,
President and CEO

Conference call

A conference call for investors, analysts and media will be held today, 12 February 2019, 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 33 3300 9263
From Denmark: +45 78 15 01 07
From Sweden: +46 8 566 427 05

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 12 February 2019, 08:00 a.m. CET.

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