Continued organic sales growth, improved operating profit and stable cash flow generation
Third quarter of 2016
- Consolidated net sales increased by 4 percent to SEK 527 m (505), of which organic growth amounted to 4 percent.
- Net sales in Product & Solutions amounted to SEK 387 m (381) and in Installation Services to SEK 167 m (148)
- Operating profit (EBIT) before items affecting comparability increased by 16 percent and amounted to SEK 85 m (73)
- Operating profit (EBIT) doubled to SEK 84 m (42)
- Operating cash flow amounted to SEK 80 m (109)
- Earnings per share before and after dilution were SEK 3.04 (1.07)
- Consolidated net sales increased by 5 percent to SEK 1,373 m (1,305), of which organic growth amounted to 6 percent.
- Net sales in Products & Solutions amounted to SEK 1,043 m (1,011) and in Installation Services to SEK 402 m (354)
- Operating profit (EBIT) before items affecting comparability increased by 27 percent and amounted to SEK 181 m (143)
- Operating profit (EBIT) increased by 38 percent to SEK 167 m (121)
- Operating cash flow amounted to SEK 70 m (88)
- Earnings per share before and after dilution were SEK 5.36 (3.09)
Message from the CEO
Continued organic sales growth and improved earnings
Nordic Waterproofing continued to grow in the third quarter of 2016. Consolidated net sales rose by 4 percent and EBIT before items affecting profitability increased by 16 percent compared with the corresponding period in 2015.
This progression, combined with our very strong first half year performance, makes for a record first nine months in the history of our Group, with sales up 5 percent and EBIT before items affecting profitability up 27 percent compared with the corresponding period in 2015.
On this basis we are confident we will deliver a record breaking full year earnings performance. In addition to our continued focus on earnings performance in our existing businesses, we are actively seeking and evaluating selective acquisition opportunities in all our operating segments and geographies.
Nordic Waterproofing is one of Northern Europe’s leading producers and providers of products and related services for waterproofing, protecting and preserving buildings and infrastructure.
Consolidated net sales in the third quarter of 2016 showed growth of 4 percent compared with the corresponding period in 2015, from SEK 505 m to SEK 527 m, with both of our operating segments contributing. While our Products & Solutions operating segment reported a sales increase of 2 percent, our Installation Services operating segment achieved an increase of 13 percent, based on improved demand in Finland. Denmark continued to see a very favorable demand trend. The Swedish market confirmed the weaker demand in DIY sales and in our sales of infrastructure project-related products, as noted in our previous financial report. Sales in Norway are back on track, with a positive growth trend. The Finnish market has confirmed the signs of recovery seen since the beginning of the year, driven primarily by projects in the Helsinki region. We noted a weaker order inflow in the third quarter, partly due to our focus on projects with more attractive margins, partly due to a favorable order inflow in the corresponding quarter last year.
Sales in the Product & Solutions operating segment was favorable despite somewhat declining sales in Sweden, possibly as an effect of the lower ROT tax deductions. We are continuing to analyze the situation and what measures will be required to support our sales in 2017. Earnings increased compared with the previous quarter as well as compared with the corresponding quarter in 2015, supported by relatively low, albeit gradually rising, bitumen prices.
The Installation Services operating segment also reported improved results, primarily due to improved volumes in our Finnish operations. Our total order book for Installation Services remains at a high level compared with the corresponding period in 2015. The demand situation is in line with the seasonal variations. I am also pleased with the confirmed relations with our Danish franchisees, who provides us with customer insights while also pushing us to achieve excellence of delivery.
Operating cash flow in the quarter was SEK 80 m (109), thus resulting in net debt of SEK 127 m at the end of the period.
Earnings per share for the quarter were up, from SEK 1.07 to 3.04, and SEK 5.36 for the period January – September 2016 (3.09), an increase of 73 percent.
Vejen, 15 November 2016
President and CEO
A conference call for investors, analysts and media will be held today, 15 November 2016, at 10:00 a.m. CET and can be joined online at www.nordicwaterproofing.com. Presentation material 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 9801 From Denmark: +45 82 33 31 78 From Sweden: +46 8 566 426 90 Further information can be obtained from Martin Ellis, President and CEO tel: +45 31 21 36 69 Jonas Olin, CFO tel: +46 708 29 14 54 Anders Antonsson, Investor Relations tel: +46 709 99 49 70
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 person set out above, at 15 November 2016, 08:00 p.m. CET.