Lindab’s full year report 2021: Record results for a transformed Lindab

Fourth quarter 2021

 

• Lindab’s divestment of the business area Astron Building Systems was completed at the end of the year. In this interim report Building Systems is reported as “discontinued operations”.

 

Continuing operations

• Net sales increased by 23 percent to SEK 2,560 m (2,082). Organic growth was 20 percent.
• Adjusted1) operating profit increased to SEK 311 m (225).
• Operating profit increased to SEK 311 m (225).
• Adjusted1) operating margin increased to 12.1 percent (10.8).
• Operating margin increased to 12.1 percent (10.8).

 

Total operations

• Profit for the period increased to SEK 221 m (186) and was affected by one-off items and restructuring costs of SEK -23 m (-) related to Building Systems.
• Earnings per share before dilution increased to SEK 2.88 (2.43) and after dilution to SEK 2.87 (2.43).
• Cash flow from operating activities amounted to SEK 215 m (356).

 

 

January – December 2021

 

Continuing operations

• Net sales increased by 17 percent to SEK 9,648 m (8,220). Organic growth was 17 percent.
• Adjusted1) operating profit increased to SEK 1,266 m (860).
• Operating profit increased to SEK 1,266 m (790).
• Adjusted1) operating margin increased to 13.1 percent (10.5).
• Operating margin increased to 13.1 percent (9.6).
• Earnings per share after dilution amounted to SEK 12.50 (7.25).

 

Total operations

• Profit for the period amounted to SEK 537 m (596). The profit was affected by one-off items and restructuring costs of SEK -455 m (-64), which were mainly not impacting cash flow.
• Earnings per share before dilution amounted to SEK 7.02 (7.80) and after dilution to SEK 7.00 (7.80).
• Cash flow from operating activities amounted to SEK 704 m (1,129).
• The Board of Directors proposes a dividend of SEK 4.00 (3.40) per share, split and paid out on two occasions.

 

1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.

 

 

Lindab’s President and CEO, Ola Ringdahl, comments:

 

“Lindab ends 2021 with yet another strong quarter. Sales were record high, both during the quarter and for the full year. The adjusted operating margin for the full year was 13.1 percent for continuing operations, which is well above the financial target of at least a 10 percent operating margin.

 

Demand for Lindab’s products is strong and customers have appreciated our delivery performance, especially in times when there has been a shortage of steel and other materials. Sales have benefited from high steel prices, as Lindab has been proactive in pricing. This has helped to maintain gross margins even when purchasing costs have increased.

 

Streamlining the business increases profitability

During the quarter, Lindab completed the divestment of Astron Building Systems. Astron has ended the year positively and we are proud to hand over a well-run business to the new owners.

 

The divestment of Astron was an important step in a three-year process to streamline operations. In 2020, we sold IMP Klima, which manufactures air handling units. We have also reduced the number of countries in which we operate, from 32 countries to 20. Increased focus on our prioritised products and markets is a key reason why Lindab has increased the adjusted operating margin significantly in recent years, from 6.8 percent in 2018 to 13.1 percent in 2021. The strategic transformation of the business has now been completed and Lindab is entering a new phase with focus on organic and acquisition-driven growth.

 

The investment program is proceeding according to plan

Lindab has high competence in advanced production methods, and we implement an ambitious investment program. Increased automation ensures higher capacity, more efficient production and smarter logistics. This contributes to strengthened competitiveness and the opportunity to grow organically with good profitability. The investments also contribute to a safer work environment.

 

Acquisitions contribute to growth

In 2021, Lindab acquired five well-managed companies with strong customer relationships. Our strategy is that the acquired companies continue to work independently, but we see that there are many positive synergies that are attractive to everyone involved. Our sales target is to grow by ten percent per year and we estimate that two thirds of the sales increase will come from acquisitions.

 

Increased dividend

Considering the strong earnings in continuing operations and a strong financial position, the Board of Directors proposes an increased dividend to SEK 4.00 (3.40).

 

The demand for healthy indoor environments is increasing

The long-term demand for Lindab’s ventilation products benefits from an increased interest in solutions that create healthy indoor environments and reduce energy consumption. With more efficient ventilation, the customer gets lower operating costs while the indoor air quality is improved. The importance of sustainable solutions that are also financially favourable is constantly increasing. Lindab’s product offering meets several important requirements in order to position itself well in this area. The development is also driven by rising energy costs, EU’s directives for renovation and new construction of properties, including the EU Green Deal, and various new national support packages.

 

Lindab has a strong and motivated organisation. With our presence throughout Europe and a robust supply chain, we are well positioned to continue to develop the business in a positive direction.

 

2021 has been a year when we further strengthened Lindab. Thank you to all customers who continue to choose Lindab.

 

Thank you to all employees for your efforts during the year.”

 

 

Press and analyst meeting:

 

A live webcast will be held at 1:00 pm (CET) on February 11. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Jonas Arkestad CFO.

 

To access the webcast, please call:

Phone +46 (0) 8 519 993 83

Alternatively phone +44 333 300 9267

 

The webcast can be followed live at: https://tv.streamfabriken.com/lindab-q4-2021

 

__________________

 

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 11-02-2022 07:40 CET.

Contacts:

Ola Ringdahl
President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00

Jonas Arkestad
CFO
E-mail: jonas.arkestad@lindab.com
Phone: +46 (0) 431 850 00

Catharina Paulcén
Head of Corporate Communications
E-mail: catharina.paulcen@lindab.com
Mobile: +46 (0) 701 48 99 65

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 9,648 m in 2021 and is established in 20 countries with approximately 4,500 employees. The Nordic region accounted for 55 percent of sales in 2021, Western Europe for 29 percent, Central- and Eastern Europe for 14 percent and Other markets for 2 percent.
 
The share is listed on the Nasdaq Stockholm, Large Cap, under the ticker symbol LIAB.