Lindab's Interim Report January - June 2024: Sales growth and improved operating margin
GREVIE,
Second quarter 2024
- Net sales increased by 5 percent to
SEK 3,520 m (3,365). Organic sales growth was negative by 3 percent while acquisitions contributed positively by 8 percent. - Adjusted1) operating profit increased to
SEK 338 m (302). - Operating profit increased to
SEK 338 m (302). - Adjusted1) operating margin increased to 9.6 percent (9.0).
- Operating margin increased to 9.6 percent (9.0).
- Profit for the period amounted to
SEK 213 m (240). - Earnings per share before and after dilution amounted to
SEK 2.77 (3.14). - Cash flow from operating activities increased to
SEK 342 m (323). - During the quarter
Lindab signed an agreement to acquire the Danish ventilation company Venti A/S. The acquisition was completed in July. - In April,
Lindab finalised the acquisition of the German ventilation business of TGA KlimaPartner.
January -
- Net sales increased by 1 percent to
SEK 6,667 m (6,589). Organic sales growth was negative by 7 percent while acquisitions contributed positively by 7 percent. - Adjusted1) operating profit amounted to
SEK 563 m (566). - Operating profit amounted to
SEK 563 m (566). - Adjusted1) operating margin amounted to 8.4 percent (8.6).
- Operating margin amounted to 8.4 percent (8.6).
- Profit for the period amounted to
SEK 330 m (420). - Earnings per share before and after dilution amounted to
SEK 4.29 (5.49). - Cash flow from operating activities amounted to
SEK 550 m (678).
1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.
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As in previous quarters, the second quarter was characterised by weak demand due to lower construction activity in
Ventilation Systems continues to grow with good profitability
Ventilation Systems increased both sales and operating margin compared with the same period last year. The gross margin has been strengthened as an effect of implemented efficiency and cost measures. Completed acquisitions have also made a positive contribution. The operating margin for the quarter was 10.4 percent and during the first half of the year Ventilation Systems met the long-term target of an operating margin of at least 10 percent. We see it as a sign of strength and stability that Ventilation Systems can deliver on the profitability target despite a weak economy. When the market starts to improve again, Ventilation Systems will increase sales and show rising margins.
Improved market situation and results for Profile Systems
Over the past two years, Profile Systems has been negatively affected by reduced construction activity in the Nordic region. Since April, the market has gradually improved, although to a lesser extent.
Profile Systems turned the first quarter's loss into an operating margin of 8.7 percent in the second quarter. This is the first time since the recession began two years ago that Profile Systems has improved its results compared with the same period last year. The break in the trend shows that the measures to strengthen profitability have started to have an effect. Structural changes are continuously evaluated for units that do not achieve the profitability targets.
Acquisitions create conditions for further growth
During the second quarter, an agreement was signed to acquire the Danish ventilation company Venti, which manufactures circular and rectangular ventilation ducts and distributes ventilation products. Venti does not currently sell
With a continued strong cash flow and a good financial position, more acquisitions will be added to
Prepared for higher demand
The long-term demand for
When the market improves,
The target for 2027 is to achieve sales of
Market shows signs of recovery
The market situation remains subdued, with many projects on hold, but signs of recovery have been noted in the second quarter. The accumulated needs are high and continued interest rate reductions will benefit the construction industry.
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Contacts:
President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00
Lars Ynner
CFO
E-mail: lars.ynner@lindab.com
Phone: +46 (0) 431 850 00
Head of Corporate Communications
E-mail: catharina.paulcen@lindab.com
Mobile: +46 (0) 701 48 99 65
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The following files are available for download:
Lindab´s Report for the Second Quarter 2024 |
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https://news.cision.com/lindab/i/interim-report-q2-cover,c3320777 |
Interim report Q2-cover |
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