YEAR-END REPORT, January-December 2020

Good finish to a strong 2020

Fourth quarter of 2020

  • Consolidated net sales increased by 1 percent to SEK 769 m (763), organic growth amounted to 5 percent
  • Net sales in Product & Solutions amounted to SEK 584 m (554) and in Installation Services to SEK 205 m (231)
  • Gross profit increased to SEK 207 m (200), Gross margin increased to 26.9% (26.2%)
  • EBITDA increased to SEK 93 m (91), EBITDA margin increased to 12.1% (12.0%)
  • Operating profit (EBIT) increased to SEK 65 m (62), EBIT margin increased to 8.4% (8.2%)
  • ROCE increased to 15.6 percent (12.9)
  • Cash flow from operating activities increased to SEK 183 m (154)
  • Earnings per share before and after dilution were SEK 2.32 (2.56) and SEK 2.30 (2.54), respectively

January-December 2020

  • Consolidated net sales increased by 6 percent to SEK 3,303 m (3,122), organic growth amounted to 7 percent
  • Net sales in Products & Solutions amounted to SEK 2,570 m (2,358) and in Installation Services to SEK 833 m (866)
  • Gross profit increased to SEK 929 m (813), Gross margin increased to 28.1% (26.1%)
  • EBITDA increased to SEK 455 m (371), EBITDA margin increased to 13.8% (11.9%)
  • Operating profit (EBIT) increased to SEK 337 m (260), EBIT margin increased to 10.2% (8.3%)
  • Cash flow from operating activities increased to SEK 462 m (312)
  • Earnings per share before and after dilution were SEK 10.60 (8.19) and SEK 10.52 (8.13), respectively
  • The board proposes a cash dividend of SEK 5,50 (0.00) per share and an extra dividend of SEK 4.50 per share referring to 2019.

Message from the CEO

Good finish to a strong 2020

The Group ends a strong 2020 with another good quarter of organic growth and strong cash flow. Consolidated net sales in the fourth quarter increased by 1 percent compared with the previous year, from SEK 763 million to SEK 769 million. Organic growth was 5 percent and the currency translation effects were -4 percent.

EBIT for the fourth quarter amounted to SEK 65 million, compared with SEK 62 million for the corresponding period last year, an increase of 4 percent. The positive development of the operating result is mainly due to increased volumes and good cost control. We also had a strong cash flow during the quarter, which was mainly due to reductions in working capital.

I am happy to report that thanks to a proactive and highly responsible approach and behaviour among our colleagues, fortunately we have seen few cases of Covid-19 among our staff and we have had a limited impact on our business.

During the quarter we completed the work to migrate the parent company from Denmark to Sweden. The new Swedish parent company Nordic Waterproofing Holding AB has been listed on Nasdaq Stockholm since 30 November.

Our renewed focus on an active acquisition strategy has already yielded two transactions after the end of the quarter, Byggpartner in Norway, a company that performs installation and maintenance of waterproofing products, and Gauris in the Netherlands, a distributor of products for dams and EPDM sealing materials. We welcome our new colleagues in both Norway and the Netherlands to Nordic Waterproofing. We expect additional transactions during the remainder of the year.

The increase in net sales of 1 percent in the fourth quarter is mainly explained by good sales in the Products & Solutions operating segment, which organically grew 6 percent, while the Installation Services business segment declined organically by 11 percent compared to a strong quarter last year.

In the Products & Solutions segment, the bitumen-based business showed good growth. In particular growth was strong in Norway and Finland. Sweden also had good growth while Denmark was on level with the fourth quarter of the previous year. We expect that we have continued to increase our market share in the Nordic region.
Our rubber membrane business in SealEco had a strong fourth quarter, again with double-digit growth rates. Distri Pond, which was acquired in February 2019, had another strong quarter with sales growth of over 40 percent and for the whole of 2020 growth was 35 percent.
Our prefabricated elements business grew by 20 percent compared to a strong fourth quarter last year. As previously communicated, a profit improvement program is underway within the Taasinge Group. In the fourth quarter, operating profit showed a clear improvement over the previous year but is still not at a satisfactory level. In both Denmark and Norway we have strong orderbooks at the end of the year.

In the Installation Services segment, where sales are mainly generated in Finland, market developments continue to vary by region. We see better market development in the Helsinki area while the market is weaker in areas outside the major urban areas. Net sales decreased by 11 percent, of which 8 percent organically, compared with the strong fourth quarter (+17 percent) the previous year. Most of the operations had negative growth rates with the exception of roof maintenance companies, which showed good growth in both Sweden and Finland.
Our Danish franchise companies continue to experience a strong and stable market and performed well in the fourth quarter with an EBIT contribution over the corresponding period last year and ended the year with order books at a slightly lower level than the previous year.

Given the short- and long-term uncertainty regarding the effects of the Covid-19 pandemic, we have continued a strong focus on monitoring order intake, cost and customer credit control. We also have continued measures to protect the availability of input materials to ensure our delivery capacity to our customers. Going forward, we continue to closely monitor the potential impact of the Covid-19 outbreak. We will continue to prioritize protecting the health of our employees and taking responsibility for our communities and for our customers.

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.

Last but not least, I would like to thank all colleagues in the Group for the efforts made during this year, which has given us many new and unexpected challenges to deal with. We can look back on a strong and successful year, confirming the strength of our decentralized business model where all business units can act quickly and flexibly. Our employees’ commitment, enthusiasm and creativity are crucial factors in making Nordic Waterproofing a strong company and a fantastic workplace.

Helsingborg, 9 February 2021

Martin Ellis,
President and CEO

Conference call

A conference call for investors, analysts and media will be held today, 9 February 2021, 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 9271
From Denmark: +45 82 33 31 94
From Sweden: +46 8 505 583 54


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 9 February 2021, 08:00 a.m. CET.