Restructuring of Lindab in Eastern Europe to focus on ventilation
Lindab is restructuring its operations in Eastern Europe in order to fully focus on profitable growth for the ventilation business in the region. As a consequence, business area Profile Systems is exiting Eastern Europe. Business operations within Ventilation Systems will continue as before in Poland, the Czech Republic, Hungary and the Baltic States.
Lindab has previously announced a strategic evaluation of the Eastern European operations in business area Profile Systems. After completion, a decision has been made to divest the profile business in Slovakia, Romania and Hungary during 2025. In addition, the profile business in the Czech Republic will be closed at the end of this year, as previously communicated, and in Poland and Estonia during the first quarter of 2025.
“The profile business in the region has shown an unsatisfactory profitability over several years due to weak market development, volatile raw material prices and high cost inflation”, says Ola Ringdahl, President and CEO of Lindab. “Lindab's ventilation business in Eastern Europe has a strong platform and we are now putting additional focus on profitable growth in a region with interesting potential.”
The Eastern European profile business currently has 250 employees. Net sales over the last four quarters were approximately 500 MSEK, which corresponded to 15 per cent of net sales for business area Profile Systems and 4 per cent of the Group's total net sales. Profitability during the period was slightly negative. Excluding the operations concerned, the pro forma operating margin for business area Profile Systems would have improved to 7.4% (6.3%) and for the Group to 8.7% (8.5%) during the period.
From 2025, business area Profile Systems will have its strategic focus on the home markets in Scandinavia, where the market position is strong and where there are significant synergies with the ventilation business.
The decided restructuring will result in one-time costs, which will be recognised in the fourth quarter of 2024, amounting to in total approximately 400 MSEK. The one-time costs do not have a significant effect on cash flow. Goodwill impairment amounts to 250 MSEK. Approximately 150 MSEK refers to asset write-downs and costs for divestment and discontinuation.
This disclosure contains information that Lindab is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 11-12-2024 19:11 CET.
Contacts
Ola Ringdahl
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
Fredrik Wahrolén
Head of Communications
E-mail: fredrik.wahrolen@lindab.com
Mobile: +46 (0) 705 393 379
Lindab in brief
Lindab is a leading ventilation company in Europe. Lindab develops, manufactures, markets and distributes products and systems for energy-efficient ventilation and a healthy indoor climate. The products are characterised by high quality, ease of installation and environmental thinking.
The Group had sales of SEK 13,114 m in 2023 and is established in 20 countries with approximately 5,000 employees. The Nordic region accounted for 45 percent of sales in 2023, Western Europe for 42 percent, Central Europe for 12 percent and Other markets for 1 percent.
The share is listed on the Nasdaq Stockholm, Large Cap, under the ticker symbol LIAB.