Strong second quarter with earnings growth
Message from the CEO
Strong second quarter with earnings growth
Consolidated net sales for the second quarter rose by 22 percent compared with last year, from SEK 603 m to SEK 736 m. Acquisitions contributed 16 percent, organic growth was 2 percent and currency exchange rate effects was 4 percent.
At SEK 79 m, EBIT before items affecting comparability was above last year's profit of SEK 72 m, an increase of 10 percent. At the same time, EBITDA increased 21 percent to SEK 96 m compared with SEK 79 m in the corresponding period in the preceeding year.
Veg Tech, our third acquisition this year, was completed after the reporting period in the beginning of July, in line with our commitment to develop our business towards sustainable and environmentally efficient solutions. The Swedish company Veg Tech, a leading specialist in green roofs and multifunctional vege-tation systems, has annual sales of SEK 125 m within a segment benefiting from growing demand.
The consolidated net sales growth of 22 percent in the second quarter was driven by the strong roofing and infrastructure markets in Sweden and Denmark but also the prefabricated elements business in both Denmark and Norway. While our Products & Solutions operating segment reported a sales increase of 31 percent, our Installation Services operating segment decreased 3 percent as a deliberate and direct consequence of our more selective project approach and efforts to increase profitability in the Finnish installation services business.
Within our Products & Solutions segment, Denmark continued to see a favorable demand trend and Sweden showed returning growth following the long and cold winter during the first quarter. We are implementing a second sales price increase for our bitumen based products with effect from the end of the third quarter, to adress recent further bitumen price increases.
In both Denmark and Norway, the prefabricated elements business continue to develop very well and enjoys strong order intake.
The profit improvement program within our flat roof installation services business in Finland is developing according to plan within the larger unit in Finland, and our efforts, including a more selective approach towards roofing projects and the execution of the projects, are starting to show positive financial effects are visible as of mid-2018. Our Danish franchise companies continued to perform well during the second quarter, with strong order books and an EBIT contribution in line with the preceding year.
The continued strength in the Danish market has led to some capacity constraints in terms of finding and hiring skilled and qualified roofers. In September, we are therefore starting up a co-operation and a trainee program together with the Vejen municipality and roofing companies throughout Denmark. The program aims to educate, increase the interest and prepare young adults to be able and willing to pursue a future career within roofing, as we foresee a continued lack of skilled roofers in the coming years.
As of the beginning of July, after the reporting period, I am pleased to welcome Veg Tech and our new colleagues to our Group. Veg Tech's solid position in vegetation technology and green roofs is a perfect complement to our existing offering of high-quality waterproofing solutions. Through the acquisition of Veg Tech, we demonstrate and enhance our commitment towards sustainable and environmentally efficient solutions for the building industry. Veg Tech is operated as a separate business unit within the Products & Solutions segment, and Bengt-Erik Karlberg, Head of Veg Tech, is as of today a new member of the Group Management of Nordic Waterproofing.
Vejen, 16 August 2018
President and CEO
A conference call for investors, analysts and media will be held today, 16 August 2018, at 10:00 a.m. CEST and can be joined online at www.nordicwaterproofing.com (https://tv.streamfabriken.com/nordic-waterproofing-q2-2018). 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 16 August 2018, 08:00 a.m. CEST.
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