Annual Report • Feb 7, 2024
Annual Report
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Lindab reported its highest fourth quarter ever in terms of sales. Both the operating margin and cash flow improved compared to the corresponding period previous year. For the full year, sales increased by 6 percent and the operating margin amounted to 9 percent. Ventilation Systems increased sales and reported over 10 percent operating margin for 2023. Profile Systems has adjusted the business well to changing market conditions. The operating cash flow for the full year was record strong.
| Key Figures | 2023 Oct-Dec |
2022 Oct-Dec |
Change, % |
2023 Jan-Dec |
2022 Jan-Dec |
Change, % |
|---|---|---|---|---|---|---|
| Net sales, SEK m | 3,274 | 3,223 | 2 | 13,114 | 12,366 | 6 |
| Adjusted1) operating profit, SEK m | 261 | 244 | 7 | 1,178 | 1,347 | -13 |
| Operating profit, SEK m | 261 | 244 | 7 | 1,178 | 1,325 | -11 |
| Adjusted1) operating margin, % | 8.0 | 7.6 | - | 9.0 | 10.9 | - |
| Operating margin, % | 8.0 | 7.6 | - | 9.0 | 10.7 | - |
| Profit for the period, SEK m | 190 | 171 | 11 | 849 | 974 | -13 |
| Earnings per share before dilution, SEK | 2.48 | 2.24 | 11 | 11.07 | 12.73 | -13 |
| Earnings per share after dilution, SEK | 2.48 | 2.24 | 11 | 11.07 | 12.70 | -13 |
| Cash flow from operating activities, SEK m | 589 | 527 | 12 | 1,711 | 691 | 148 |
1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs. See 'Reconciliations' page 23.
Lindab ended the year with higher sales and profitability than in the corresponding quarter previous year. Sales for the full year exceeded SEK 13 billion for the first time, driven by acquisitions that strengthened Lindab's geographic reach and product offerings. Despite challenging market conditions, Ventilation Systems achieved 10 percent operating margin for the full year. Lindab enters 2024 aiming at continued profitable growth and the ambition to reach SEK 20 billion in sales by 2027.
As in previous quarters, the fourth quarter was characterised by lower demand in the construction market. However, several countries are showing resilience and we see continued good demand in France, Italy, Switzerland, Ireland and parts of Eastern Europe. The Nordic region has been particularly affected, but demand seems to have stabilised at a low level. Since the autumn, demand has also begun to decrease in Germany, the Netherlands and the UK.
Lindab's cost savings have followed the plan during the quarter, which among other things led to a strengthened gross margin. The operating margin exceeded the corresponding quarter last year for the first time in 2023. The operating cash flow was record high. Lindab has now delivered a strong operating cash flow for five consecutive quarters and there are good prospects that this trend can continue in 2024. Overall, 2023 was a satisfactory year given market current conditions, although we did not achieve all our financial targets.
Ventilation Systems achieved 10.1 percent operating margin Ventilation Systems has developed well throughout 2023 with increased sales and improved profitability. For the full year, Ventilation Systems achieved an operating margin of 10.1 percent. We continue to see increased demand for sustainable and energy-efficient products. This favours Lindab, which has a competitive offer. During the year, Lindab's ventilation products have also excelled in the area of sustainability being the first supplier of products in both recycled and fossil-free steel.
The reduced construction activity in the Nordic region has a direct impact on demand for Profile Systems. It is primarily the project business and residential-related sales that have slowed down considerably. Profile Systems has, with the implemented cost savings, adapted the business well to the current market conditions. The efforts to increase profitability and and reduce cyclical sensitivity continues.
Thanks to improved profitability and a strong balance sheet, Lindab has been able to complete more than 20 acquisitions since 2020 and the companies are developing positively within the Group. In January 2024, an agreement was signed to acquire Airmaster, a European leader in decentralised ventilation for commercial properties. This lays the foundation for a new product area for decentralised ventilation within Lindab, creating a new platform for growth. We see Airmaster as the start of further acquisitions with the goal that the product area will reach SEK 2 billion in sales by 2027.
The strong cash flow, in combination with Lindab's good financial position, enables a proposal to increase the dividend to SEK 5.40 per share, an increase of 4 percent. It is important for us to value our shareholders at the same time as we further develop Lindab.
The focus is now on 2027, when the goal is to achieve sales of SEK 20 billion with an operating margin of at least 10 percent. Growth will take place within Ventilation Systems, in a combination of organic growth and acquisitions. The core of Profile Systems will be further refined, especially in Scandinavia where there are significant synergies between our businesses. Product areas and geographies that do not meet our high standards of organic growth and stable profitability will be evaluated.
Lindab has an experienced and motivated organisation, strong customer relationships throughout Europe and a stable supply chain. Our assessment is that the European ventilation market will remain weak in the first half of 2024. We continue to adapt our resources to the current demand. Despite a challenging market situation, I am determined that Lindab will reach its financial targets in 2024.
Thank you to all customers who continue to choose Lindab. Thank you to all employees for your efforts during the year.
Grevie, February 2024
Ola Ringdahl President and CEO
Lindab has the following financial targets for growth, profitability and net debt:
1) Growth excluding currency effects.
2) Including the previous segment Building Systems, which was divested in 2021. 3) The outcome for annual growth including divested business was 13.0 percent in 2022 and 18.5 percent in 2021. Adjusted operating margin including dive sted business was 12.2 percent in 2021.
4) Net debt/EBITDA is calculated including IFRS 16 and adjusted for one-off items and restructuring costs. Financial net debt/EBITDA amounted to 1.4 for 2023, 1.0 for 2022, 0.4 for 2021, 0.5 for 2020 and 0.8 for 2019. For complete definition of financial net debt and financial net debt/EBITDA, see page 25.
Decarbonised steel is the collective term used by Lindab for steel that is produced with a lower carbon footprint than conventionally produced steel. There are two sub-groups within the concept of decarbonised steel: recycled steel and fossil-free steel.
Steel accounts for approximately 80-95 percent of the environmental impact of Lindab's products and approximately 50 percent of Lindab's total emissions. It is a material with many advantages: it has a long life span, it doesn't catch fire and it can be recycled again and again. By using decarbonised steel, the product characteristics remain the same - a ventilation duct is still a ventilation duct - only the raw material changes, resulting in a significantly lower environmental impact.
Recycled steel today produces 60-70 percent less CO2 emissions than traditionally produced steel and consists of at least 75 percent recycled material. Lindab is continuously evaluating materials with even higher recycled steel content. Lindab offers recycled steel products as part of its standard product range since the autumn 2023. There is currently not enough steel to be recycled to use only recycled steel.
Fossil-free steel is not yet available in large-scale production but is expected to be delivered from 2026. Lindab has agreements with, among others, H2 Green Steel and SSAB, which uses the HYBRIT technology. In 2023, Lindab gained access to a small test delivery of fossil-free steel from SSAB. In 2024, it will be used in a construction project in Lund where the world's first ventilation ducts of fossil-free steel will be installed. In the project, Lindab is collaborating with Skanska and Vectura to create a 24,000 sqm office and research property with LEED Gold sustainability certification.
Net sales during the quarter increased with 2 percent and amounted to SEK 3,274 m (3,223). Organic sales growth was negative by 5 percent while currency effects were positive by 3 percent. Structural changes contributed positively by 4 percent.
Lindab reported its highest fourth quarter in terms of sales ever. The high turnover was mainly driven by structural growth, but also by positive currency effects. In relation to previous year, all quarters of the year have been affected by higher interest rates and cost inflation. This has resulted in that the construction market, mainly in the Nordics but also other parts of Europe, had to adapt to new conditions. The organic sales decreased during the quarter for both Ventilation Systems and Profile Systems.
Ventilation Systems' sales development is primarily explained by lower demand in Europe as a result of the subdued construction market, but also due to that Lindab has actively worked on the balance between volume and profitability, with a clear objective to prioritise profitability. Profile Systems' sales development is explained by the fact that the business has a high exposure to the Swedish market and to new construction, where the construction activity has slowed down considerably.
Group net sales during the period January-December increased with 6 percent and amounted to SEK 13,114 m (12,366). Organic sales growth decreased by 9 percent while the currency effects were positive by 5 percent. Structural changes contributed positively by 10 percent.
Adjusted operating profit for the quarter increased to SEK 261 m (244). No one-off items or restructuring costs were reported during the quarter or in the same period previous year. Adjusted operating margin increased to 8.0 percent (7.6).
The Group's improvement in adjusted operating profit is mainly explained by a strengthened gross margin but also by lower costs. Cost measures to improve the Group's gross margin and adapt operations to lower demand have continued to be a high priority. During the quarter, acquired companies also contributed positively to the operating profit.
Ventilation Systems' adjusted operating profit increased to SEK 212 m (183) and Profile Systems amounted to SEK 62 m (79).
Profit for the quarter increased to SEK 190 m (171). Earnings per share before dilution amounted to SEK 2.48 (2.24) and after dilution to SEK 2.48 (2.24).
The Groups' adjusted operating profit for the period January-December amounted to SEK 1,178 m (1,347). No one-off items or restructuring costs were reported during the period compared to SEK -22 m in the same period previous year, see Reconciliations page 23. Adjusted operating margin amounted to 9.0 percent (10.9).
Profit for the period January-December amounted to SEK 849 m (974). Earnings per share before dilution amounted to SEK 11.07 (12.73) and after dilution to SEK 11.07 (12.70).
Lindab's business is affected by seasonal variations in the construction industry, and the highest proportion of net sales is normally seen during the second half of the year. The largest seasonal variations can be found in the segment Profile Systems. Ventilation products are mainly installed indoors which is why the Ventilation Systems segment is less dependent on season or weather conditions.
Depreciation and amortisation for the quarter amounted to SEK 158 m (135), of which SEK 15 m (13) was related to intangible assets and SEK 87 m (72) to right-of-use assets attributable to rental and lease agreement. Impairment losses during the quarter amounted to SEK 0 m (-).
Depreciation and amortisation for the period January-December amounted to SEK 603 m (481), of which SEK 58 m (40) was related to intangible assets and SEK 327 m (259) was related to right-of-use assets attributable to rental and lease agreements. Impairment losses during the period amounted to SEK 0 m (2). Impairment losses for the previous year have been reported as other operating expenses in the consolidated statement of profit or loss and were classified as one-off items and restructuring costs.
Net sales, SEK m Adjusted operating profit, SEK m
Earnings before tax for the quarter amounted to SEK 209 m (215) and tax on profit was SEK 19 m (44). The effective tax rate amounted to 9 percent (20) and the average tax rate was 22 percent (21). The lower effective tax rate compared to the average tax rate was mainly explained by establishment of tax union in Germany during the year, leading to Lindab being able to recognise previously unrecognised carry-forward tax losses. The deviation between the effective tax rate for the quarter and the corresponding period previous year was mainly explained by the same reason.
Earnings before tax for the period January-December amounted to SEK 1,008 m (1,238) and tax on profit was SEK 159 m (264). The effective tax rate amounted to 16 percent (21) and the average tax rate was 21 percent (21). The lower effective tax rate, compared to the average tax rate, was mainly explained by establishment of tax union in Germany, leading to Lindab being able to recognise previously unrecognised carry-forward tax losses. The deviation between the effective tax rate for the period and the corresponding period previous year was mainly explained by the same reason.
Cash flow from operating activities for the quarter increased to SEK 589 m (527). The reason to the improved cash flow during the period was related to an increased cash flow before change in working capital, which amounted to SEK 339 m (269). The development was partly influenced by a higher underlying operating profit and less negative cash flow impact in terms of tax payments. During the quarter, operating profit increased to SEK 261 m (244). The quarters' change in working capital was in line with the corresponding period previous year and amounted to SEK 250 m (258).
Cash flow from financing activities for the quarter amounted to SEK -412 m (-462). This included amortisation of SEK -87 m (-72) related to leasing liabilities. Dividend to shareholders increased
by SEK 47 m and amounted to SEK -200 m (-153). Other changes within financing activities were related to changes in borrowing and utilisation of credit limits of net SEK -125 m (-237).
Cash flow from operating activities for the period January-December increased to SEK 1,711 m (691). The improvement was primarily related to changes in working capital, which amounted to SEK 415 m (-733). Compared to the same period previous year, the development of working capital was mainly explained by lower amount of capital tied up in stock, a change which improved cash flow by SEK 823 m. The lower negative net cash flow impact from changes in outstanding operating receivables/liabilities also contributed positively to the development of working capital. The positive cash flow effect from changes in working capital was partly offset by the Group's increased payments of interest and tax, a net change of SEK -105 m compared to the same period previous year. Operating profit for the period January-December amounted to SEK 1,178 m (1,325) and cash flow before change in working capital was SEK 1,296 m (1,424).
Cash flow from financing activities for the period January-December amounted to SEK -843 m (556). This included amortisation of SEK -327 m (-259) related to leasing liabilities. Dividend to shareholders increased by SEK 93 m and amounted to SEK -399 m (-306). Other changes within financing activities were mainly related to changes in borrowing and utilisation of credit limits of net SEK -143 m (1,095).
Cash flow from investing activities is explained under the headings 'Investments' respectively 'Business combinations'.
Investments in intangible assets and tangible fixed assets during the quarter amounted to SEK 21 m (82), of which SEK 6 m (17) were related to investments in intangible assets.
Cash flow from investing activities, excluding business combinations, amounted net to SEK -19 m (-81) during the quarter. The cash flow included an effect from the sale of intangible assets and tangible fixed assets of SEK 2 m (1).
Investments in intangible assets and tangible fixed assets for the period January-December amounted to SEK 294 m (359), of which SEK 43 m (40) were related to investments in intangible assets.
Cash flow from investing activities, excluding business combinations, amounted net to SEK -287 m (-345) during the period January-December. The cash flow included an effect from the sale of intangible assets and tangible fixed assets of SEK 7 m (14).
On October 5, Lindab acquired all the shares and voting rights of the British ventilation group HAS-Vent. The operating company within the group is a notable manufacturer and distributor of ventilation products in the UK. With this acquisition, Lindab strengthens its sales and production of ventilation related products in one of Europe's most important markets. The parent company HAS-Vent Holdings Ltd. is registered in Wolverhampton, UK. The company has annual sales of approximately SEK 280 m and about 100 employees.
For more information about above and previous acquisitions during 2023, see Note 3.
Net debt amounted to SEK 3,264 m (3,310) as of December 31, 2023, of which SEK 1,370 m (1,212) was related to leasing liabilities. Currency effects decreased net debt by SEK 52 m (25) during the fourth quarter.
The equity/assets ratio was 53 percent (52) and the net debt/ equity ratio was 0.5 (0.5). Financial items for the quarter amounted to SEK -52 m (-29). The change is related to increased interest expenses due to a higher interest rate.
The current credit limits of SEK 1,300 m with Nordea and Raiffeisen Bank International and EUR 70 m from Raiffeisen Bank International are valid until second quarter 2026. Lindab also has a credit limit of SEK 1,000 m with Nordea which is valid until second quarter 2025. All agreements contain a covenant, which is monitored quarterly. Lindab fulfilled the conditions as of December 31, 2023.
No significant changes have been made in pledged collateral and contingent liabilities during the fourth quarter 2023.
• The current investment program started in 2019. The aim was to achieve increased capacity, higher efficiency, a safer working environment and investments in renewable energy. The last major investment decisions, as part of the program, have now been taken and the focus is on implementing and ending the ongoing projects. The investment costs have gradually been reduced during 2023.
Lindab International AB (publ), corporate identification number 556606-5446, is a registered limited liability company with its domicile in Båstad, Sweden. The Lindab share is listed on Nasdaq Stockholm, Large Cap.
Net sales for the quarter amounted to SEK 1 m (2). Profit for the quarter amounted to SEK 47 m (38).
Net sales for the period January-December amounted to SEK 6 m (6). Profit for the period amounted to SEK 1,280 m (36). The profit included a dividend from shares in subsidiaries of SEK 1,250 m (7).
There have been no significant changes in relation to what was stated by Lindab in its Annual Report for 2022 under Risks and Risk Management (pages 64-69).
The number of employees, calculated as full-time equivalent employees, was 4,909 (4,853) at the end of the quarter. Adjusted for acquisitions and divestments, the net decrease was 213 employees compared to the same quarter previous year.
Guidelines for remuneration of senior executives were most recently adopted at the Annual General Meeting in 2021. These guidelines shall as per resolution be submitted for adoption at the Annual General Meeting at least each fourth year. According to adopted guidelines, the remuneration program for senior executives shall among other things include variable cash pay elements. These variable elements shall be based on measurable criteria, which reflects predetermined financial and qualitative targets for Lindab. Based on previous resolution at the Annual General Meeting, a long-term incentive program has been implemented in 2023. The program has a three-year measuring period and any outcome in terms of long-term variable cash pay is presumed to be invested in shares or share related instruments in Lindab on market terms. The total cost in the event of maximum outcome for the three-year measuring period of 2023 to 2025 is estimated to SEK 14 m. Long-term incentive programs from 2021 respectively 2022 have essentially the same principles as the program for 2023 and these programs measuring period are 2021 to 2023 respectively 2022 to 2024.
At the Annual General Meeting in May 2023, it was resolved to establish a share option program for senior executives in Lindab through a directed issue of maximum 275,000 share options. As a result of this program, 225,500 share options have been subscribed during the second quarter by senior executives in Lindab, according to a market valuation determined on the basis of the agreement. Liquidity regulation and thereby distribution of the share options to the participants has taken place during the beginning of the third quarter. Each share option entitles the holder to acquire one share in Lindab at a exercise price of SEK 209.70. Acquisitions of shares supported by share options may take place after Lindab has published the Q2 interim report for the year 2026 and up until 31 August of the same year. At the Annual General Meeting in 2020, 2021 and 2022, respectively, there were also resolutions to implement share option programs for senior executives. During the third quarter of 2023, 210,000 externally owned share options in the 2020 share option program were used to acquire shares in accordance with the terms of the program. This resulted that 210,000 own shares in Lindab International AB were exchanged when the share options were redeemed. The share options were redeemed at an exercise price of SEK 101.90 per share. From the 2021 share option program there are 183,950 outstanding share options with a subscription price of SEK 222.00 exercisable during summer 2024. From the 2022 share option program there are 238,050 outstanding share options with a subscription price of SEK 219.90 exercisable during summer 2025.
The Board of Directors has decided that the Annual General Meeting will be held on May 14, 2024. Notice to the meeting will be sent in due course.
Lindab´s Board of Directors proposes that the Annual General Meeting on May 14, 2024 approves a dividend of SEK 5.40 per share. This is in accordance with the dividend policy of minimum 40 percent of Lindab's net profit considering the Groups' financial position, acquisition oppertunities and long-term financial needs. The proposed dividend corresponds to SEK 415 m. The Board of Directors intend to announce preliminary record date(s), at the latest in connection with the notice to the Annual General Meeting. Dividend is proposed to be distributeded on two occasions.
In October Lindab acquired all shares and voting rights of the British ventilation Group HAS-Vent, see page 6 and Note 3.
There are no other significant events during the reporting period to report.
In January, Lindab signed an agreement to acquire the American business Vicon, a leading US manufacturer of rectangular ventilation duct machinery. The acquisition more than triples Lindab's sales in the US while doubling global sales of machines for duct production. Closing is expected to take place during the first quarter of 2024.
In January, Lindab signed an agreement to acquire the Danish company Airmaster, an European company in decentralised ventilation. With the acquisition, Lindab establishes a new product area for decentralised ventilation. Closing is expected to take place during the first quarter of 2024.
There are no other significant events after the reporting period to report.
In December 2021, Lindab divested the segment Building Systems. Key figures for periods earlier than 2022 include divested operations, which result in that key figures for rolling 12 months 2022 are calculated both including and excluding divested operations.
For further information see Note 6.
Unless other indicated in this interim report, all statements refer to the Group. Figures in parentheses indicate the result of the same period previous year. Unless other stated, amounts are in SEK m.
The interim report has not been audited.
This is a translation of the Swedish original report. In case of differences between the English translation and the Swedish original, the Swedish text shall prevail.
| Key performance indicators | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
|---|---|---|---|---|
| Net sales, SEK m | 2,402 | 2,258 | 9,688 | 8,444 |
| Net sales growth, % | 6 | 35 | 15 | 32 |
| Adjusted1) operating profit, SEK m | 212 | 183 | 981 | 881 |
| Adjusted1) operating margin, % | 8.8 | 8.1 | 10.1 | 10.4 |
| Number of employees by end of period | 3,968 | 3,862 | 3,968 | 3,862 |
1) No one-off items and restructuring costs were reported in the fourth quarter 2023 or 2022. No one-off items and restructuring costs were reported in the period January-December 2023 compared to SEK -22 m in 2022. See Reconciliations page 23.
Net sales during the quarter increased by 6 percent and amounted to SEK 2,402 m (2,258). Organic sales growth was negative by 3 percent while currency effects were positive with 3 percent. Acquisitions contributed positively by 6 percent.
Ventilation Systems reported its highest fourth quarter ever, in terms of sales, driven by structural growth and positive currency effects.
Within Ventilation Systems, Lindab has actively worked on the balance between volume and profitability, with a clear objective to prioritise profitability. This together with subdued construction activity in Europe has resulted in a negative organic sales growth. The lower construction activity is a result of higher cost inflation and interest rates.
Sales growth in Central Europe was strong, where all of Lindab's markets reported increased sales with the exception of Poland. The construction market in Western Europe was relatively stable during the quarter but varied between individual markets, where a number of markets have now been affected by lower construction activity. Germany, which is Lindab's largest ventilation market in Western Europe, reported decreased sales. Other core markets such as France and Italy reported positive organic growth while sales decreased in the UK and the Netherlands. In the Nordics, sales decreased in all markets. In general, the Nordic region is the region in Europe where the construction activity has slowed down the most during the year, as a result of higher interest rates and cost inflation.
Net sales during the period January-December increased by 15 percent and amounted to SEK 9,688 m (8,444). Organic sales growth was negative by 4 percent while the currency effects were positive by 6 percent. Acquisitions contributed positively by 13 percent.
Adjusted operating profit during the quarter increased to SEK 212 m (183). No one-off items or restructuring costs were reported during the quarter or in the same period previous year. Adjusted operating margin increased to 8.8 percent (8.1).
The improved adjusted operating profit, which is the highest ever for a fourth quarter, was mainly explained by a strengthened gross margin but also by positive currency effects and acquisitions.
Adjusted operating profit for the period January-December increased to SEK 981 m (881). No one-off items or restructuring costs were reported during the period compared to SEK -22 m in the same period previous year, see Reconciliations page 23. Adjusted operating margin amounted to 10.1 percent (10.4).
During the quarter, Lindab has taken another step towards reducing the climate impact of Lindab's products by offering ventilation ducts in recycled steel as part of the standard product range.
In October, Lindab acquired the British ventilation group HAS-Vent. Through the acquisition, Lindab strengthens its sales and production of ventilation products in the UK.
Lindab International AB (publ), Corporate identification number 556606-5446, lindabgroup.com 9
| Key performance indicators | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
|---|---|---|---|---|
| Net sales, SEK m | 872 | 965 | 3,426 | 3,922 |
| Net sales growth, % | -10 | 8 | -13 | 20 |
| Adjusted1) operating profit, SEK m | 62 | 79 | 246 | 526 |
| Adjusted1) operating margin, % | 7.1 | 8.2 | 7.2 | 13.4 |
| Number of employees by end of period | 882 | 936 | 882 | 936 |
1) No one-off items or restructuring costs have been reported in 2023 or 2022.
Net sales during the quarter amounted to SEK 872 m (965), a decrease of 10 percent. Organic sales growth was negative with 12 percent, while currency effects were positive by 2 percent.
Profile Systems reported negative organic sales growth, which is explained by clearly lower demand on the construction market, especially in new construction. The segment also had relatively high comparison numbers.
Profile Systems has high exposure to the Swedish market and to new construction, which has slowed down considerably during the year. This is a consequence of the higher interest rate levels, which has generated lower investments. The Swedish market also had relatively high sales in the same period previous year, mainly related to industrial construction projects but also steel profiles for wall, roof and beam constructions. In the other Nordic markets, Norway reported positive organic growth, while sales in Denmark decreased slightly.
Demand in Central Europe has continued to be affected by a subdued construction market, where larger construction projects have been postponed as a result of high cost inflation. This has resulted in lower sales in all markets during the quarter, with the exception of Romania.
Sales in Western Europe decreased slightly, but the impact was marginal as the region only represents a minor part of Profile Systems' total sales.
Net sales during the period January-December amounted to SEK 3,426 m (3,922), a decrease of 13 percent. Organic sales growth was negative by 19 percent, while currency effects were positive by 2 percent. Acquisitions contributed positively by 4 percent.
Adjusted operating profit during the quarter amounted to SEK 62 m (79). No one-off items or restructuring costs were reported during the quarter or in the same period previous year. Adjusted operating margin amounted to 7.1 percent (8.2).
The lower adjusted operating profit and operating margin are mainly explained by lower sales, but also by a slightly lower gross margin. This has partly been offset by lower costs and favourable currency effects.
Adjusted operating profit for the period January-December amounted to SEK 246 m (526). No one-off items or restructuring costs were reported during the period or in the same period previous year. Adjusted operating margin amounted to 7.2 percent (13.4).
| SEK m | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
|
|---|---|---|---|---|---|
| Net sales | 3,274 | 3,223 | 13,114 | 12,366 | |
| Change | 51 | 663 | 748 | 2,718 | |
| Change, % | 2 | 26 | 6 | 28 | |
| Of which | |||||
| Organic, % | -5 | 1 | -9 | 11 | |
| Acquisitions/divestments, % | 4 | 20 | 10 | 13 | |
| Currency effects, % | 3 | 5 | 5 | 4 |
| 2023 | 2022 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Oct-Dec | % | Oct-Dec | % | Jan-Dec | % | Jan-Dec | % |
| Ventilation Systems | 2,402 | 73 | 2,258 | 70 | 9,688 | 74 | 8,444 | 68 |
| - Nordic Region | 811 | 34 | 851 | 38 | 3,184 | 33 | 3,362 | 40 |
| - Western Europe | 1,297 | 54 | 1,166 | 51 | 5,344 | 55 | 4,032 | 48 |
| - Central Europe | 248 | 10 | 198 | 9 | 967 | 10 | 886 | 10 |
| - Other markets | 46 | 2 | 43 | 2 | 193 | 2 | 164 | 2 |
| Profile Systems | 872 | 27 | 965 | 30 | 3,426 | 26 | 3,922 | 32 |
| - Nordic Region | 672 | 77 | 773 | 80 | 2,689 | 79 | 3,148 | 80 |
| - Western Europe | 42 | 5 | 41 | 4 | 169 | 5 | 176 | 5 |
| - Central Europe | 155 | 18 | 149 | 16 | 555 | 16 | 585 | 15 |
| - Other markets | 3 | 0 | 2 | 0 | 13 | 0 | 13 | 0 |
| Total | 3,274 | 100 | 3,223 | 100 | 13,114 | 100 | 12,366 | 100 |
| - Nordic Region | 1,483 | 45 | 1,624 | 50 | 5,873 | 45 | 6,510 | 53 |
| - Western Europe | 1,339 | 41 | 1,207 | 38 | 5,513 | 42 | 4,208 | 34 |
| - Central Europe | 403 | 12 | 347 | 11 | 1,522 | 12 | 1,471 | 12 |
| - Other markets | 49 | 2 | 45 | 1 | 206 | 1 | 177 | 1 |
| Gross internal sales all segments | 9 | 12 | 40 | 46 |
| SEK m | 2023 Oct-Dec |
% | 2022 Oct-Dec |
% | 2023 Jan-Dec |
% | 2022 Jan-Dec |
% |
|---|---|---|---|---|---|---|---|---|
| Ventilation Systems | 212 | 8.8 | 183 | 8.1 | 981 | 10.1 | 881 | 10.4 |
| Profile Systems | 62 | 7.1 | 79 | 8.2 | 246 | 7.2 | 526 | 13.4 |
| Other operations | -13 | - | -18 | - | -49 | - | -60 | - |
| Adjusted operating profit | 261 | 8.0 | 244 | 7.6 | 1,178 | 9.0 | 1,347 | 10.9 |
| One-off items and restructuring costs1) | - | - | - | - | - | - | -22 | - |
| Operating profit | 261 | 8.0 | 244 | 7.6 | 1,178 | 9.0 | 1,325 | 10.7 |
| Net financial items | -52 | - | -29 | - | -170 | - | -87 | - |
| Earnings before tax | 209 | 6.4 | 215 | 6.7 | 1,008 | 7.7 | 1,238 | 10.0 |
1) One-off items and restructuring costs included in adjusted operating profit are described in 'Reconciliations' page 23.
| 2023 | 2022 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|---|
| Oct-Dec | % | Oct-Dec | % | Jan-Dec | % | Jan-Dec | % | |
| Ventilation Systems | 3,968 | 81 | 3,862 | 80 | 3,968 | 81 | 3,862 | 80 |
| Profile Systems | 882 | 18 | 936 | 19 | 882 | 18 | 936 | 19 |
| Other operations | 59 | 1 | 55 | 1 | 59 | 1 | 55 | 1 |
| Total | 4,909 | 100 | 4,853 | 100 | 4,909 | 100 | 4,853 | 100 |
| SEK m | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
|---|---|---|---|---|
| Net sales | 3,274 | 3,223 | 13,114 | 12,366 |
| Cost of goods sold | -2,387 | -2,386 | -9,556 | -8,908 |
| Gross profit | 887 | 837 | 3,558 | 3,458 |
| Other operating income | 29 | 26 | 105 | 115 |
| Selling expenses | -404 | -375 | -1,576 | -1,338 |
| Administrative expenses | -193 | -192 | -715 | -659 |
| R&D expenses | -18 | -17 | -68 | -61 |
| Other operating expenses | -40 | -35 | -126 | -190 |
| Total operating expenses | -626 | -593 | -2,380 | -2,133 |
| Operating profit1) | 261 | 244 | 1,178 | 1,325 |
| Interest income | 5 | 2 | 11 | 5 |
| Interest expenses | -55 | -33 | -180 | -82 |
| Other financial income and expenses | -2 | 2 | -1 | -10 |
| Financial items | -52 | -29 | -170 | -87 |
| Earnings before tax | 209 | 215 | 1,008 | 1,238 |
| Tax on profit for the period | -19 | -44 | -159 | -264 |
| Profit for the period | 190 | 171 | 849 | 974 |
| –attributable to the Parent company's shareholders | 190 | 171 | 849 | 974 |
| Earnings per share, before dilution, SEK2) | 2.48 | 2.24 | 11.07 | 12.73 |
| Earnings per share, after dilution, SEK2) | 2.48 | 2.24 | 11.07 | 12.70 |
1) One-off items and restructuring costs, which are included in operating profit, are described in 'Reconciliations' on page 23. 2) Based on the number of outstanding shares, i.e. excluding treasury shares.
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| SEK m Profit for the period |
Oct-Dec 190 |
Oct-Dec 171 |
Jan-Dec 849 |
Jan-Dec 974 |
| Items that will not be reclassified to the statement of profit or loss | ||||
| Actuarial gains/losses, defined benefit plans | -54 | -23 | -22 | 80 |
| Deferred tax attributable to defined benefit plans | 10 | 5 | 4 | -16 |
| Total | -44 | -18 | -18 | 64 |
| Items that will later be reclassified to the statement of profit or loss | ||||
| Translation differences, foreign operations | -160 | 124 | 41 | 402 |
| Hedges of net investments | 14 | -7 | -16 | -74 |
| Tax attributable to hedges of net investments | -3 | 1 | 3 | 15 |
| Total | -149 | 118 | 28 | 343 |
| Other comprehensive income, net of tax | -193 | 100 | 10 | 407 |
| Total comprehensive income attributable to the Parent company's shareholders | -3 | 271 | 859 | 1,381 |
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| SEK m | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| OPERATING ACTIVITIES | ||||
| Operating profit | 261 | 244 | 1,178 | 1,325 |
| Reversal of depreciation/amortisation and impairment losses | 158 | 135 | 603 | 483 |
| Reversal of capital gains (-)/losses (+) reported in operating profit | 1 | 0 | -2 | -5 |
| Provisions, not affecting cash flow | -2 | -1 | 10 | 18 |
| Adjustment for other items not affecting cash flow | -3 | 2 | 0 | -9 |
| Total | 415 | 380 | 1,789 | 1,812 |
| Interest received | 6 | 1 | 12 | 4 |
| Interest paid | -51 | -33 | -175 | -84 |
| Tax paid | -31 | -79 | -330 | -308 |
| Cash flow from operating activities before change in working capital | 339 | 269 | 1,296 | 1,424 |
| Change in working capital | ||||
| Stock (increase -/decrease +) | 210 | 261 | 471 | -352 |
| Operating receivables (increase -/decrease +) | 357 | 463 | 35 | -13 |
| Operating liabilities (increase +/decrease -) | -317 | -466 | -91 | -368 |
| Total change in working capital | 250 | 258 | 415 | -733 |
| Cash flow from operating activities | 589 | 527 | 1,711 | 691 |
| INVESTING ACTIVITIES | ||||
| Acquisition of Group-/associated companies | -176 | - | -473 | -983 |
| Divestment of Group companies | - | - | - | -12 |
| Investments in intangible assets | -6 | -17 | -43 | -40 |
| Investments in tangible fixed assets | -15 | -65 | -251 | -319 |
| Change in financial fixed assets | 0 | 0 | 0 | 0 |
| Disposal of intangible assets | 0 | - | 1 | - |
| Disposal of tangible fixed assets | 2 | 1 | 6 | 14 |
| Cash flow from investing activities | -195 | -81 | -760 | -1,340 |
| FINANCING ACTIVITIES | ||||
| Proceeds from borrowings | - | - | 272 | 1,332 |
| Repayment of borrowings | -125 | -237 | -415 | -237 |
| Repayment of leasing-related liabilities | -87 | -72 | -327 | -259 |
| Issue of shares/share options and redemption of share options | - | - | 26 | 26 |
| Dividend to shareholders | -200 | -153 | -399 | -306 |
| Cash flow from financing activities | -412 | -462 | -843 | 556 |
| Cash flow for the period | -18 | -16 | 108 | -93 |
| Cash and cash equivalents at start of the period | 619 | 495 | 481 | 542 |
| Effect of exchange rate changes on cash and cash equivalents | -14 | 2 | -2 | 32 |
| Cash and cash equivalents at end of the period | 587 | 481 | 587 | 481 |
| SEK m | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Goodwill | 4,378 | 3,967 |
| Other intangible assets | 300 | 282 |
| Tangible fixed assets | 2,123 | 2,014 |
| Right-of-use assets | 1,310 | 1,156 |
| Financial interest-bearing fixed assets | 22 | 25 |
| Other financial fixed assets | 25 | 27 |
| Deferred tax assets | 86 | 36 |
| Total non-current assets | 8,244 | 7,507 |
| Current assets | ||
| Stock | 2,377 | 2,752 |
| Accounts receivable | 1,937 | 1,951 |
| Other current assets | 383 | 262 |
| Other interest-bearing receivables | 31 | 4 |
| Cash and cash equivalents | 587 | 481 |
| Total current assets | 5,315 | 5,450 |
| TOTAL ASSETS | 13,559 | 12,957 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Shareholders' equity attributable to Parent company shareholders | 7,237 | 6,751 |
| Total shareholders' equity | 7,237 | 6,751 |
| Non-current liabilities | ||
| Interest-bearing provisions for pensions and similar obligations | 246 | 217 |
| Liabilities to credit institutions | 2,241 | 2,349 |
| Lease liabilities | 1,054 | 930 |
| Deferred tax liabilities | 153 | 150 |
| Provisions | 15 | 7 |
| Other non-current liabilities | 53 | 41 |
| Total non-current liabilities | 3,762 | 3,694 |
| Current liabilities | ||
| Other interest-bearing liabilities | 47 | 42 |
| Lease liabilities | 316 | 282 |
| Provisions | 10 | 11 |
| Accounts payable | 964 | 974 |
| Other current liabilities | 1,223 | 1,203 |
| Total current liabilities | 2,560 | 2,512 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 13,559 | 12,957 |
| Shareholders' equity attributable to Parent company shareholders | |||||
|---|---|---|---|---|---|
| SEK m | Share capital |
Other contributed capital |
Foreign currency translation reserve |
Profit brought forward incl. profit for the year |
Total sharehol ders' equity |
| Closing balance, 31 December 2021 | 79 | 2,272 | 180 | 3,119 | 5,650 |
| Profit for the period | 974 | 974 | |||
| Other comprehensive income, net of tax | |||||
| Actuarial gains/losses, defined benefit plans | 64 | 64 | |||
| Translation differences, foreign operations | 402 | 402 | |||
| Hedges of net investments (after tax) | -59 | -59 | |||
| Total comprehensive income | - | - | 343 | 1,038 | 1,381 |
| Issuance/redemption of share options | 26 | 26 | |||
| Dividends to shareholders | -306 | -306 | |||
| Transactions with shareholders | - | - | - | -280 | -280 |
| Closing balance, 31 December 2022 | 79 | 2,272 | 523 | 3,877 | 6,751 |
| Profit for the period | 849 | 849 | |||
| Other comprehensive income, net of tax | |||||
| Actuarial gains/losses, defined benefit plans | -18 | -18 | |||
| Translation differences, foreign operations | 41 | 41 | |||
| Hedges of net investments (after tax) | -13 | -13 | |||
| Total comprehensive income | - | - | 28 | 831 | 859 |
| Issuance/redemption of share options | 26 | 26 | |||
| Dividends to shareholders | -399 | -399 | |||
| Transactions with shareholders | - | - | - | -373 | -373 |
| Closing balance, 31 December 2023 | 79 | 2,272 | 551 | 4,335 | 7,237 |
At December 31, 2023, the share capital equalled SEK 78,842,820 (78,842,820) divided among 78,842,820 shares (78,842,820) with a quota value of SEK 1.00. Lindab International AB (publ) holds 1,990,838 treasury shares (2,200,838), corresponding to 2.5 percent (2.8) of the total number of Lindab shares. The number of outstanding shares totals 76,851,982 (76,641,982).
| SEK m | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
|---|---|---|---|---|
| Net sales | 1 | 2 | 6 | 6 |
| Administrative expenses | -2 | -2 | -10 | -9 |
| Other operating costs | -5 | 0 | -5 | 0 |
| Operating profit | -6 | 0 | -9 | -3 |
| Profit from subsidiaries | 65 | 55 | 1,315 | 62 |
| Interest expenses, internal | 2 | -7 | -17 | -15 |
| Earnings before tax | 61 | 48 | 1,289 | 44 |
| Tax on profit for the period | -14 | -10 | -9 | -8 |
| Profit or loss for the period1) | 47 | 38 | 1,280 | 36 |
1) Comprehensive income corresponds to profit for all periods.
| SEK m | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Financial fixed assets | ||
| Shares in Group companies | 3,467 | 3,467 |
| Financial interest-bearing fixed assets | 4 | 5 |
| Deferred tax assets | 1 | 1 |
| Total non-current assets | 3,472 | 3,473 |
| Current assets | ||
| Receivables from Group companies | 85 | 55 |
| Prepaid expenses and accrued income | 0 | 0 |
| Cash and cash equivalents | 0 | 0 |
| Total current assets | 85 | 55 |
| TOTAL ASSETS | 3,557 | 3,528 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Shareholders' equity | ||
| Restricted shareholders' equity | ||
| Share capital | 79 | 79 |
| Statutory reserve | 708 | 708 |
| Unrestricted shareholders' equity | ||
| Share premium reserve | 90 | 90 |
| Profit brought forward | 1,379 | 1,716 |
| Profit/loss for the period | 1,280 | 36 |
| Total shareholders' equity | 3,536 | 2,629 |
| Provisions | ||
| Interest-bearing provisions | 4 | 5 |
| Total provisions | 4 | 5 |
| Current liabilities | ||
| Liabilities to Group companies | 0 | 886 |
| Accounts payable | 1 | - |
| Current tax liability | 10 | 6 |
| Accrued expenses and deferred income | 6 | 2 |
| Other liabilities | 0 | - |
| Total current liabilities | 17 | 894 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,557 | 3,528 |
| 2023 | 2022 | 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | Oct-Dec Jul-Sep Apr-Jun Jan-Mar | Oct-Dec Jul-Sep Apr-Jun Jan-Mar | Oct-Dec | ||||||
| Net sales | 3,274 | 3,251 | 3,365 | 3,224 | 3,223 | 3,239 | 3,171 | 2,733 | 2,560 |
| Growth, % | 2 | 0 | 6 | 18 | 26 | 30 | 27 | 30 | 23 |
| - of which organic | -5 | -11 | -13 | -5 | 1 | 7 | 14 | 23 | 20 |
| - of which acquisitions/divestments | 4 | 4 | 14 | 20 | 20 | 20 | 10 | 3 | 3 |
| - of which currency effects | 3 | 7 | 5 | 3 | 5 | 3 | 3 | 4 | 0 |
| Operating profit before depreciation/amortisation and impairment losses | 419 | 506 | 450 | 406 | 379 | 486 | 514 | 429 | 418 |
| Operating profit | 261 | 351 | 302 | 264 | 244 | 358 | 402 | 321 | 311 |
| Adjusted operating profit | 261 | 351 | 302 | 264 | 244 | 361 | 402 | 340 | 311 |
| Earnings before tax | 209 | 306 | 263 | 230 | 215 | 335 | 381 | 307 | 298 |
| Profit for the period | 190 | 239 | 240 | 180 | 171 | 267 | 300 | 236 | 234 |
| Operating margin, % | 8.0 | 10.8 | 9.0 | 8.2 | 7.6 | 11.1 | 12.7 | 11.7 | 12.1 |
| Adjusted operating margin, % | 8.0 | 10.8 | 9.0 | 8.2 | 7.6 | 11.1 | 12.7 | 12.4 | 12.1 |
| Profit margin before tax, % | 6.4 | 9.4 | 7.8 | 7.1 | 6.7 | 10.3 | 12.0 | 11.2 | 11.6 |
| Key performance indicators including divested business1) | |||||||||
| Net sales | 3,274 | 3,251 | 3,365 | 3,224 | 3,223 | 3,239 | 3,171 | 2,733 | 2,846 |
| Growth, % | 2 | 0 | 6 | 18 | 13 | 17 | 15 | 22 | 23 |
| - of which organic | -5 | -11 | -13 | -5 | 1 | 7 | 13 | 21 | 20 |
| - of which acquisitions/divestments | 4 | 4 | 14 | 20 | 8 | 7 | 0 | -3 | 3 |
| - of which currency effects | 3 | 7 | 5 | 3 | 4 | 3 | 2 | 4 | 0 |
| Operating profit before depreciation/amortisation and impairment losses | 419 | 506 | 450 | 406 | 379 | 486 | 514 | 429 | 393 |
| Operating profit | 261 | 351 | 302 | 264 | 244 | 358 | 402 | 321 | 286 |
| Adjusted operating profit | 261 | 351 | 302 | 264 | 244 | 361 | 402 | 340 | 324 |
| Earnings before tax | 209 | 306 | 263 | 230 | 215 | 335 | 381 | 307 | 275 |
| Profit for the period | 190 | 239 | 240 | 180 | 171 | 267 | 300 | 236 | 221 |
| Operating margin, % | 8.0 | 10.8 | 9.0 | 8.2 | 7.6 | 11.1 | 12.7 | 11.7 | 10.0 |
| Adjusted operating margin, % | 8.0 | 10.8 | 9.0 | 8.2 | 7.6 | 11.1 | 12.7 | 12.4 | 11.4 |
| Profit margin before tax, % | 6.4 | 9.4 | 7.8 | 7.1 | 6.7 | 10.3 | 12.0 | 11.2 | 9.7 |
| Key performance indicators including divested business1) | |||||||||
| Cash flow from operating activities | 589 | 444 | 323 | 355 | 527 | 216 | 161 | -213 | 215 |
| Cash flow from operating activities per share, SEK | 7.67 | 5.78 | 4.21 | 4.64 | 6.88 | 2.82 | 2.11 | -2.79 | 2.82 |
| Free cash flow | 394 | 373 | 159 | 25 | 446 | -139 | -564 | -392 | 202 |
| Adjusted free cash flow | 570 | 377 | 216 | 261 | 446 | 156 | 63 | -319 | 110 |
| Cash flow, investments in intangible assets/tangible fixed assets | -21 | -68 | -108 | -97 | -82 | -72 | -99 | -106 | -105 |
| Key performance indicators including divested business1) | |||||||||
| Number of shares outstanding, thousands | 76,852 | 76,852 | 76,642 | 76,642 | 76,642 | 76,642 | 76,467 | 76,467 | 76,467 |
| Average number of shares outstanding, thousands | 76,743 | 76,690 | 76,636 | 76,595 | 76,552 | 76,508 | 76,451 | 76,423 | 76,396 |
| Earnings per share, before dilution, SEK | 2.48 | 3.13 | 3.14 | 2.35 | 2.24 | 3.48 | 3.92 | 3.09 | 2.88 |
| Earnings per share, after dilution, SEK | 2.48 | 3.11 | 3.13 | 2.35 | 2.24 | 3.47 | 3.91 | 3.08 | 2.87 |
| Shareholders' equity attributable to Parent company shareholders | 7,237 | 7,240 | 7,158 | 7,011 | 6,751 | 6,480 | 6,087 | 5,932 | 5,650 |
| Shareholders' equity attributable to non-controlling interests | - | - | - | - | - | - | - | - | - |
| Shareholders' equity per share, SEK | 94.16 | 94.21 | 93.39 | 91.69 | 88.08 | 84.54 | 79.61 | 77.58 | 73.89 |
| Net debt | 3,264 | 3,334 | 3,747 | 3,456 | 3,310 | 3,390 | 3,169 | 2,155 | 1,696 |
| Adjusted net debt | 1,894 | 1,993 | 2,354 | 2,173 | 2,098 | 2,274 | 2,069 | 1,305 | 820 |
| Financial net debt2) | 1,670 | 1,818 | 2,172 | 1,958 | 1,906 | 2,100 | 1,865 | 1,058 | 578 |
| Net debt/equity ratio, times | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.4 | 0.3 |
| Equity/asset ratio, % | 53.4 | 51.1 | 49.3 | 51.4 | 52.1 | 48.2 | 48.1 | 53.8 | 54.8 |
| Return on equity, % | 12.0 | 12.0 | 12.8 | 14.2 | 15.8 | 17.3 | 11.5 | 11.4 | 9.9 |
| Return on capital employed, % | 10.7 | 10.7 | 11.0 | 12.7 | 14.1 | 15.5 | 12.3 | 12.3 | 11.0 |
| Interest coverage ratio, times | 4.9 | 7.5 | 7.1 | 7.6 | 7.7 | 16.6 | 27.0 | 24.9 | 26.7 |
| Net debt/EBITDA, excl. one-off items and restructuring cost | 1.9 | 2.0 | 2.0 | 1.8 | 1.6 | 1.3 | 1.1 | 1.0 | 1.0 |
| Financial net debt/EBITDA, excl. IFRS 16, excl. one-off items and restructuring costs2) |
1.4 | 1.4 | 1.4 | 1.2 | 1.0 | 0.8 | 0.6 | 0.4 | 0.4 |
| Number of employees by end of period | 4,909 | 4,825 | 4,912 | 4,926 | 4,853 | 5,012 | 4,920 | 4,579 | 4,549 |
| of which employees in discontinued operations | - | - | - | - | - | - | - | - | - |
1) Key performance indicators for periods earlier than 2022 include divested business (Building Systems), which results that rolling 12 months in 2022 are calculated on both outcomes including and excluding divested business.
2) From the third quarter 2023, this alternative key figure is included as a supplement to other financial information with the aim of further clarifying the structure of the Group's leverage.
| 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|
| SEK m | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec |
| Net sales | 13,114 | 12,366 | 9,648 | 8,220 |
| Growth, % | 6 | 28 | 17 | -3 |
| - of which organic | -9 | 11 | 17 | -2 |
| - of which acquisitions/divestments | 10 | 13 | 2 | 0 |
| - of which currency effects | 5 | 4 | -2 | -1 |
| Operating profit before depreciation/amortisation and impairment losses | 1,781 | 1,808 | 1,660 | 1,185 |
| Operating profit | 1,178 | 1,325 | 1,266 | 790 |
| Adjusted operating profit | 1,178 | 1,347 | 1,266 | 860 |
| Earnings before tax | 1,008 | 1,238 | 1,223 | 752 |
| Profit for the period | 849 | 974 | 958 | 554 |
| Operating margin, % | 9.0 | 10.7 | 13.1 | 9.6 |
| Adjusted operating margin, % | 9.0 | 10.9 | 13.1 | 10.5 |
| Profit margin before tax, % | 7.7 | 10.0 | 12.7 | 9.1 |
| Key performance indicators including divested business1) | ||||
| Net sales | 13,114 | 12,366 | 10,619 | 9,166 |
| Growth, % | 6 | 16 | 16 | -7 |
| - of which organic | -9 | 10 | 17 | -6 |
| - of which acquisitions/divestments | 10 | 3 | 2 | 1 |
| - of which currency effects | 5 | 3 | -3 | -2 |
| Operating profit before depreciation/amortisation and impairment losses | 1,781 | 1,808 | 1,645 | 1,284 |
| Operating profit | 1,178 | 1,325 | 841 | 846 |
| Adjusted operating profit | 1,178 | 1,347 | 1,297 | 916 |
| Earnings before tax | 1,008 | 1,238 | 802 | 811 |
| Profit for the period | 849 | 974 | 537 | 596 |
| Operating margin, % | 9.0 | 10.7 | 7.9 | 9.2 |
| Adjusted operating margin, % | 9.0 | 10.9 | 12.2 | 10.0 |
| Profit margin before tax, % | 7.7 | 10.0 | 7.6 | 8.8 |
| Key performance indicators including divested business1) | ||||
| Cash flow from operating activities | 1,711 | 691 | 704 | 1,129 |
| Cash flow from operating activities per share, SEK | 22.30 | 9.03 | 9.22 | 14.79 |
| Free cash flow | 951 | -649 | 300 | 466 |
| Adjusted free cash flow | 1,424 | 346 | 319 | 709 |
| Cash flow, investments in intangible assets/tangible fixed assets | -294 | -359 | -395 | -425 |
| Key performance indicators including divested business1) | ||||
| Number of shares outstanding, thousands | 76,852 | 76,642 | 76,467 | 76,357 |
| Average number of shares outstanding, thousands | 76,743 | 76,552 | 76,396 | 76,340 |
| Earnings per share, before dilution, SEK | 11.07 | 12.73 | 7.02 | 7.80 |
| Earnings per share, after dilution, SEK | 11.07 | 12.70 | 7.00 | 7.80 |
| Dividend per share, SEK | 5.402) | 5.20 | 4.00 | 3.40 |
| Shareholders' equity attributable to Parent company shareholders | 7,237 | 6,751 | 5,650 | 5,178 |
| Shareholders' equity attributable to non-controlling interests | - | - | - | 0 |
| Shareholders' equity per share, SEK | 94.16 | 88.08 | 73.89 | 67.82 |
| Net debt | 3,264 | 3,310 | 1,696 | 1,640 |
| Adjusted net debt | 1,894 | 2,098 | 820 | 663 |
| Financial net debt3) | 1,670 | 1,906 | 578 | 414 |
| Net debt/equity ratio, times | 0.5 | 0.5 | 0.3 | 0.3 |
| Equity/asset ratio, % | 53.4 | 52.1 | 54.8 | 55.1 |
| Return on equity, % | 12.0 | 15.8 | 9.9 | 11.6 |
| Return on capital employed, % | 10.7 | 14.1 | 11.0 | 11.5 |
| Interest coverage ratio, times | 6.6 | 16.2 | 20.0 | 19.0 |
| Net debt/EBITDA, excl. one-off items and restructuring costs | 1.9 | 1.6 | 1.0 | 1.4 |
| Financial net debt/EBITDA, excl. IFRS 16, excl. one-off items and restructuring costs3) | 1.4 | 1.0 | 0.4 | 0.5 |
| Number of employees by end of period | 4,909 | 4,853 | 4,549 | 5,078 |
| of which employees in discontinued operations | - | - | - | 692 |
1) Key performance indicator for periods earlier than 2022 include divested business (Building Systems), which results that rolling 12 months in 2022 are calculated on both outcomes, including and excluding divested business.
2) Proposed dividend for 2023.
3) From the third quarter 2023, this alternative key figure is included as a supplement to other financial information with the aim of further clarifying the structure of the Group's leverage.
The consolidated accounts for the interim report have, similar to the annual consolidated accounts for 2022, been prepared in in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board RFR 1, Supplementary Accounting Rules for Groups.
This interim report has been prepared in accordance with IAS 34 Interim financial reporting. The Group has applied the same accounting policies as described in the Annual Report for 2022.
None of the new or amended standards, interpretations or improvements adopted by the EU have had any significant impact on the Group.
Information in terms of IAS 34 p. 16A Interim financial reporting has been disclosed in notes to the financial statements as well as in other pages of the interim report.
The financial statements for the Parent company are prepared according to the Swedish Annual Accounts Act and RFR 2, Accounting for legal entities and according to the same accounting policies as were applied in the Annual Report for 2022.
Significant estimates and judgements are described in Note 4 in the Annual report for 2022. No essential changes, which could have a material impact on this interim report, have been made to what is described in the Annual Report for 2022.
On October 5, 2023, Lindab acquired all the shares and voting rights of the British ventilation group HAS-Vent. The operating company within the group is a notable manufacturer and distributor of ventilation products in the UK. The product portfolio includes, among other things, own produced circular, oval and rectangular ventilation ducts. The distribution is managed through ten branches in the UK, some in locations where Lindab does not currently operate. With the acquisition Lindab strengthens its presence in one of Europe's most important ventilation markets. HAS-Vent Holdings Ltd. is registered in Wolverhampton, UK. The company has annual sales of approximately SEK 280 m and about 100 employees.
The purchase consideration of HAS-Vent Holding Ltd. was mainly settled at the time of the acquisition. Transaction-related costs amounted to SEK 4 m and these are recognised as other operating expenses.
According to preliminary purchase price allocation analysis, the acquisition is expected to result in additional goodwill and identified intangible assets related to customer relations and the trademark HAS-Vent. The purchase price allocation analysis will be finalised during 2024.
On November 10, the British Competition & Markets Authority announced an initial enforcement order ahead of its stated intention to investigate Lindab's completed acquisition of HAS-Vent Holdings Ltd. to assess whether the merger raises any competition concerns in the UK market. This investigation is expected to be finalised during the first six months of 2024. Based on IFRS, the Group has assessed that a controlling influence is in place per definition and therefore HAS-Vent Holdings Ltd. with subsidiaries is consolidated in Lindab as of October 5, 2023, i.e. at the time of the acquisition. Due to the ongoing assessment by the British competition regulator, Lindab cannot explicitly assess HAS-Vent's impact on the financial statements of the Lindab Group. However, considering the short period of ownership, the financial impact is not material. HAS-Vent is part of the Ventilation Systems segment.
On April 24, 2023, Lindab signed an agreement to acquire the Czech ventilation business Ventilace EU, an acquisition that was finalised on June 5, 2023. Ventilace EU is a well-established manufacturer of rectangular ventilation ducts in the Czech Republic. With the acquisition, Lindab strengthens both sales and production of rectangular ventilation ducts mainly in the Czech Republic. Ventilace EU is registered in Prague, Czech Republic. The business has annual sales of approximately SEK 42 m and a operating margin that is slightly lower than the Lindab Group's. Ventilace EU has 30 employees.
The purchase consideration of the business Ventilace EU was mainly settled at time of acquisition. Transaction related costs amounted to SEK 4 m, of which SEK 3 m is recognised as other operating expenses in 2023 and the remaining in previous year.
According to final purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab strengthens its position in the Czech Republic, obtain local expertise on rectangular production and is expected to achieve buyer specific synergies. Identified intangible assets are mainly related to customer relations and the trademark Ventilace.
Ventilace EU is consolidated in Lindab as of June 5, 2023. The acquisition has increased net sales of Lindab by SEK 18 m, from the time of acquisition until December 31, 2023, and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net sales would have increased by SEK 36 m. The business is part of the Ventilation Systems segment.
On May 2, 2023, Lindab acquired all shares and voting rights of the British ventilation company Firmac Ltd., which is the leader in Europe of machines for manufacturing of rectangular ventilation ducts. Lindab is the market leader of machines for manufacturing of circular ventilation ducts through its Spiro business. With the acquisition of Firmac Ltd. Lindab gets the corresponding business for rectangular ducts. Firmac Ltd. is registered in Scarborough, UK. The company has annual sales of approximately SEK 40 m
and an operating margin in line with the Lindab Group's. Firmac Ltd. has 32 employees.
The purchase consideration of Firmac Ltd. was settled at time of acquisition. Transaction related costs amounted to SEK 2 m, of which SEK 1 m is recognised as other operating expenses in 2023 and the remaining in previous year.
According to final purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab access expertise in machines for manufacturing rectangular ventilation ducts and a complement to Spiro for other machine technic within the segment Ventilation System. Identified intangible assets are mainly related to customer relations and the trademark Firmac.
Firmac Ltd. is consolidated in Lindab as of May 2, 2023. The acquisition has increased net sales of Lindab by SEK 34 m, from the time of acquisition until December 31, 2023 and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net sales would have increased by SEK 47 m. The company is part of the Ventilation Systems segment.
On March 3, 2023, Lindab acquired all shares and voting rights of the Irish ventilation company Irish Ventilation & Filtration Ltd. The company is a leading distributor of ventilation products and targets mainly maintenance and repair departments of large international companies as well as mechanical contractors. The company primarily offers filters and fans, but also dampers, grilles and ventilation ducts. The company also has its own design and manufacturing of air handling units. With the acquisition Lindab access new customer categories, an increased product range and strengthens its presence further on Ireland. Irish Ventilation & Filtration Ltd. is registered in Crumlin, Ireland. The company has annual sales of approximately SEK 100 m and a higher operating margin than the Lindab Groups'. Irish Ventilation & Filtration Ltd. has 19 employees.
The purchase consideration of Irish Ventilation & Filtration Ltd. was mainly settled at time of acquisition. Transaction related costs amounted to SEK 3 m and these are recognised as other operating expenses.
According to final purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab strengthens its presence further on Ireland, access expertise within ventilation distribution and receive a wider product range of ventilation products. Identified intangible assets are mainly related to customer relations and the trademark Irish Ventilation & Filtration.
Irish Ventilation & Filtration is consolidated in Lindab as of March 3, 2023. The acquisition has increased net sales of Lindab by SEK 91 m, from the time of acquisition until December 31, 2023 and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net
sales would have increased by SEK 108 m. The company is part of the Ventilation Systems segment.
On February 28, 2023, Lindab acquired all shares and voting rights of the German ventilation company Raab Lüftungstechnik GmbH. The company is a leading manufacturer of high-quality rectangular ventilation ducts in southern Germany. By adding the company to Lindab's business, the Group further strengthens its position in Germany, a market that is assessed to have big potential for the Group going forward. Raab Lüftungstechnik GmbH is registered in Großmehring, north of Munich in Germany. The company has annual sales of approximately SEK 160 m and an operating margin in line with the Lindab Groups'. Raab Lüftungstechnik GmbH has 95 employees.
The preliminary purchase consideration of Raab Lüftungstechnik GmbH was mainly settled at time of acquisition. Transaction related costs amounted to SEK 3 m, of which SEK 2 m is recognised as other operating expenses in 2023 and the remaning in previous year.
According to final purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab strengthens its position on an important market, both related to sales and production of rectangular ventilation ducts. The acquisition (together with Felderer GmbH which was acquired in 2022) is also expected to bring an even stronger customer offer, and possible forward looking buyer specific synergies. Identified intangible assets are mainly related to customer relations and the trademark Raab.
Raab Lüftungstechnik GmbH is consolidated in Lindab as of February 28, 2023. The acquisition has increased net sales of Lindab by SEK 125 m, from the time of acquisition until December 31, 2023 and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net sales would have increased by SEK 153 m. The company is part of the Ventilation Systems segment.
In terms of 2023, the cash flow related to acquisitions derives, beside previously mention transactions, also from settlement of conditional additional purchase considerations of SEK 38 m respectively unconditional additional considerations of SEK 4 m in terms of previously made business combinations.
| SEK m | 2023-12-31 1),2) |
|---|---|
| Intangible assets | 32 |
| Tangible fixed assets | 76 |
| Right-of-use assets | 60 |
| Deferred tax assets | 1 |
| Stock | 77 |
| Current assets | 95 |
| Cash and cash equivalents | 61 |
| Total acquired assets | 402 |
| Deferred tax liabilities | -8 |
| Non-current lease liabilities | -53 |
| Non-current liabilities | -4 |
| Current lease liabilities | -11 |
| Current liabilities | -148 |
| Total acquired liabilities | -224 |
| Fair value of acquired net assets | 178 |
| Goodwill3) | 401 |
| Consideration including additional contingent consideration4) |
579 |
1) Acquired companies consist of Raab Lüftungstechnik GmbH, Irish Ventilation and Filtration Ltd., Firmac Ltd., HAS-Vent Holdings Ltd. with subsidiaries and the asset deal of Ventilace EU.
2) The purchase price allocations were final as of December 31, 2023, with the exception of the acquisition of HAS-Vent Holding Ltd. with subsidiaries. The reason for not finalised purchase price allocation was due to not finalised valuations of identified intangible assets.
3) No portion of reported goodwill is deductible for income tax.
4) The considerations are based on cash payments. The values include unconditional additional purchase considerations of SEK 15 m and conditional additional purchase considerations of SEK 72 m. The conditional additional purchase consideration will be settled fully or partly if future expectations of identified levels of sales and profitability are met during a period of 2 or 3 years. Total possible undiscounted amount for all recognised future conditional additional purchase consideration is between SEK 0-103 m. On December 31, 2023, it was considered likely that 92 percent of maximum potential remaining consideration would occur.
Derivatives relate to forward exchange contracts which are valued at fair value by discounting the difference between the contracted forward rate and the forward rate that can be subscribed for on the balance sheet date for the remaining contract term. The fair value of interest-bearing liabilities to credit institutions is provided for the purpose of disclosure and is calculated by discounting the future cash flows of principal and interest payments, discounted at current market interest rate.
NOTE 4 – OPERATING SEGMENTS
The Group's segments comprise Ventilation Systems and Profile Systems. The basis for segmental reporting is the various customer offers provided by each business area. The customer offers within each segment were follows:
Both Ventilation Systems' and Profile Systems' operations are managed based on geographically divided sales organisations, which are supported by a number of product and system areas with joint production and purchasing functions for each business area. What is reported under Other includes the Parent company and other common functions.
Information on income from external customers and adjusted operating profit per operating segment is presented in the tables on page 11. See also pages 9-10 for further segment information.
Internal prices between the Group's segments are set based on the principle of arm's length, that is, between parties that are independent of each other, well-informed and have an interest in the transaction being carried out. Assets and investments are reported where the asset exists.
The derivative assets and derivative liabilities that exist can all be found at Level 2 of the valuation hierarchy.
For other financial assets and liabilities, the carrying amount is deemed to be a reasonable approximation of fair value. The Group holdings of unlisted shares, the fair value of which cannot be estimated reliably, are recognised at acquisition cost. The carrying amount is SEK 4 m (4).
On September 23, 2021, Lindab signed an agreement to divest all shares and voting rights in the business area/segment Building Systems. Based on the decision to divest and the agreement as well as the current structure of the business, all prerequisites was assessed to be complied to in order to recognise Building Systems as an asset held for sale/a discontinued operation. This in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The classification was applied as of the third quarter 2021.
The agreement to divest Building Systems was, among other things, conditioned and subject to anti-trust approval in Russia. During the fourth quarter, this approval was obtained from the Russian authority and the divestment of Building Systems was finalised by end of December 2021. As a consequence, Building Systems was recognised as discounted operations by end of the fourth quarter 2021.
For interim reports prepared in 2022 and later, the application of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations implies, among other things, that net profit after tax for Building Systems in the comparison period is recognised separately in the consolidated statement of profit or loss, distinguished from the continuing operations. In the consolidated statement of cash flow is operating profit for continuing respectively discontinued operations/operations held for sale recognised separately, but thereafter is the cash flow presented for Lindab as a Group. From the fourth quarter 2023 the divestment has no affect in seperate periods or comparision number for the last twelve months.
Lindab's related parties and the extent of transactions with its related parties are described in Note 33 of the Annual Report for 2022.
At the Annual General Meeting in May 2023, it was resolved to adopt a share option program for senior executives. Under the program 225,500 share options were acquired by senior executives during the second quarter. During the third quarter 210,000 previously issued share options in the 2020 share option program were issued to acquire shares in accordance with the terms of the program. See more under 'Share option program', page 7.
During the period, there have been no other transactions between Lindab and related parties which have had a significant impact on the company's position and profit.
This interim report for Lindab International AB (publ) has been submitted following approval by the Board of Directors. Båstad, 7 February 2024
Ola Ringdahl President and CEO
The company presents certain financial measures in the interim report which are not defined according to IFRS. The company considers these measures to provide valuable supplementary information for investors and the company's management as they enable the assessment of relevant trends. Lindab's definitions of these measures may differ from other companies' definitions of the same terms. These financial measures should therefore be seen as a supplement rather than as a replacement for measures defined according
to IFRS. Definitions of measures which are not defined according to IFRS and which are not mentioned elsewhere in the interim report are presented below. Reconciliation of these measures is shown in the tables below. As the amounts in the tables below have been rounded off to SEK m, the calculations do not always add up due to round-off.
Amounts in SEK m unless otherwise indicated.
| Return on shareholders' equity, including divested operations1) | 31 Dec 2023 31 Dec 2022 | |||
|---|---|---|---|---|
| Profit for the period, rolling twelve months | 849 | 974 | ||
| Average shareholders' equity | 7,079 | 6,180 | ||
| Return on shareholders' equity, % | 12.0 | 15.8 | ||
| Return on capital employed, including divested operations1) | 31 Dec 2023 31 Dec 2022 | |||
| Total assets | 13,559 | 12,957 | ||
| Provisions and deferred tax liabilities | 168 | 157 | ||
| Other non-current liabilities | 53 | 41 | ||
| Total non-current liabilities | 221 | 198 | ||
| Provisions | 10 | 11 | ||
| Accounts payable | 964 | 974 | ||
| Other current liabilities | 1,223 | 1,203 | ||
| Total current liabilities | 2,197 | 2,188 | ||
| Capital employed | 11,141 | 10,571 | ||
| Earnings before tax, rolling twelve months | 1,008 | 1,238 | ||
| Financial expenses, rolling twelve months | 183 | 93 | ||
| Total | 1,191 | 1,331 | ||
| Average capital employed | 11,124 | 9,428 | ||
| Return on capital employed, % | 10.7 | 14.1 | ||
| 2023 | 2022 | 2023 | 2022 | |
| One-off items and restructuring costs | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Operating profit | 261 | 244 | 1,178 | 1,325 |
| Ventilation Systems | - | - | - | -22 |
| Profile Systems | - | - | - | - |
| Other operations | - | - | - | - |
| Adjusted operating profit | 261 | 244 | 1,178 | 1,347 |
of SEK - m (-22) were reported. All items related to Lindab's decision to close and later divest operations in Russia.
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Free cash flow | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Cash flow from operating activities | 589 | 527 | 1,711 | 691 |
| Cash flow from investing activities | -195 | -81 | -760 | -1,340 |
| Free cash flow | 394 | 446 | 951 | -649 |
| Cash flow related to acquisitions/divestments | -176 | - | -473 | -995 |
| Adjusted free cash flow | 570 | 446 | 1,424 | 346 |
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Adjusted operating profit and operating margin | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Adjusted operating profit | 261 | 244 | 1,178 | 1,347 |
| Operating profit | 261 | 244 | 1,178 | 1,325 |
| Net sales | 3,274 | 3,223 | 13,114 | 12,366 |
| Adjusted operating margin, % | 8.0 | 7.6 | 9.0 | 10.9 |
| Operating margin, % | 8.0 | 7.6 | 9.0 | 10.7 |
| Net debt | 31 Dec 2023 31 Dec 2022 | |
|---|---|---|
| Non-current interest-bearing provisions for pensions and similar obligations | 246 | 217 |
| Non-current liabilities to credit institutions | 2,241 | 2,349 |
| Non-current lease liabilities | 1,054 | 930 |
| Current interest-bearing liabilities | 363 | 324 |
| Total liabilities | 3,904 | 3,820 |
| Financial interest-bearing fixed assets | 22 | 25 |
| Other interest-bearing receivables | 31 | 4 |
| Cash and cash equivalents | 587 | 481 |
| Total assets | 640 | 510 |
| Net debt | 3,264 | 3,310 |
| Adjusted net debt | 31 Dec 2023 31 Dec 2022 | |
| Net debt | 3,264 | 3,310 |
| Liabilities related to leasing | -1,370 | -1,212 |
| Adjusted net debt | 1,894 | 2,098 |
| Financial net debt2) | 31 Dec 2023 31 Dec 2022 | |
|---|---|---|
| Net debt | 3,264 | 3,310 |
| Liabilities related to leasing | -1,370 | -1,212 |
| Pension related receivables | 22 | 25 |
| Pension related liabilities | -246 | -217 |
| Financial net debt | 1,670 | 1,906 |
| Net debt/EBITDA, including divested operations1) | 31 Dec 2023 31 Dec 2022 | |
| Average net debt, rolling twelve months | 3,465 | 2,851 |
| Adjusted operating profit, rolling twelve months | 1,178 | 1,347 |
| Depreciation/amortisation and impairment losses, rolling twelve months, | 603 | 481 |
| excluding one-off items and restructuring costs | ||
| EBITDA, rolling twelve months | 1,781 | 1,828 |
| Net debt/EBITDA, times | 1.9 | 1.6 |
| Financial net debt/EBITDA, excluding IFRS 16 including divested operations1), 2) | 31 Dec 2023 31 Dec 2022 | |
| Average financial net debt, rolling twelve months | 1,943 | 1,620 |
| Adjusted operating profit, rolling twelve months Reversal of leasing defined according to IFRS 16, rolling twelve months |
1,178 -362 |
1,347 -281 |
| Depreciation/amortisation and impairment losses, rolling twelve | 603 | 481 |
| months, excluding one-off items and restructuring costs | ||
| EBITDA, excluding IFRS 16 rolling twelve months | 1,419 | 1,547 |
| Financial net debt/EBITDA excluding IFRS 16, times | 1.4 | 1.0 |
| Net debt/equity ratio | 31 Dec 2023 31 Dec 2022 | |
| Net debt | 3,264 | 3,310 |
| Shareholders' equity including non-controlling interests | 7,237 | 6,751 |
| Net debt/equity ratio | 0.5 | 0.5 |
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Growth | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Change Net sales | 51 | 663 | 748 | 2,718 |
| Of which | ||||
| - Organic | -180 | 26 | -1,096 | 1,045 |
| - Acquisitions/divestments | 132 | 511 | 1,274 | 1,303 |
| - Currency effects | 99 | 126 | 570 | 370 |
| Growth, including divested operations1) | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
|---|---|---|---|---|
| Change Net sales | 51 | 377 | 748 | 1,747 |
| Of which | ||||
| - Organic | -180 | 26 | -1,096 | 1,044 |
| - Acquisitions/divestments | 132 | 225 | 1,274 | 333 |
| - Currency effects | 99 | 126 | 570 | 370 |
| 2023 | 2022 | 2023 | 2022 | |
| Interest coverage ratio | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Interest coverage ratio, times | 4.9 | 7.7 | 6.6 | 16.2 |
|---|---|---|---|---|
| Interest expenses | 55 | 32 | 180 | 82 |
| Total | 264 | 247 | 1,188 | 1,320 |
| Interest expenses | 55 | 32 | 180 | 82 |
| Earnings before tax | 209 | 215 | 1,008 | 1,238 |
| Operating profit before depreciation/amortisation - EBITDA | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
|---|---|---|---|---|
| Operating profit | 261 | 244 | 1,178 | 1,325 |
| Depreciation/amortisation and impairment losses | 158 | 135 | 603 | 483 |
| Of which one-off items and restructuring costs | - | - | - | 2 |
| Operating profit before depreciation/amortisation - EBITDA | 419 | 379 | 1,781 | 1,808 |
| Profit margin before tax | 2023 Oct-Dec |
2022 Oct-Dec |
2023 Jan-Dec |
2022 Jan-Dec |
| Net sales | 3,274 | 3,223 | 13,114 | 12,366 |
| Profit before tax | 209 | 215 | 1,008 | 1,238 |
| Profit margin before tax, % | 6.4 | 6.7 | 7.7 | 10.0 |
1) Key figures for periods earlier than 2022 include divested business (Building Systems), which results in that key figures for rolling 12 months in 2022 includes divested business. 2) From the third quarter 2023, this alternative key figure is included as a supplement to other financial information with the aim of further clarifying the Group's leverage.
Earnings per share, SEK: Profit for the period attributable to Parent company shareholders to average number of shares outstanding, based on a rolling twelve-month calculation.
Adjusted Free Cash Flow: Cash flow from operations and cash flow from investments, excluding company acquisitions/divestments.
Adjusted Net debt: Net debt excluding liabilities related to leasing.
Adjusted operating margin: Adjusted operating profit expressed as a percentage of net sales.
Adjusted operating profit: Operating profit adjusted for one-off items and restructuring costs when the amount is significant in size.
Cash flow from operating activities per share, SEK: Cash flow from operating activities to number of shares outstanding at the end of the period.
Continuing operations: Lindab Group excluding discontinued operations.
Discontinued operations: Business Area Building Systems, which was divested in December 2021.
Equity/asset ratio: Shareholders' equity including non-controlling interests, expressed as a percentage of total assets.
Financial net debt: Net debt excluding leasing liabilities and pension related items.
Financial net debt/EBITDA excluding IFRS 16 : Average financial net debt in relation to EBITDA, excluding IFRS 16 and excluding leasing liabilities and pension related items.
Free Cash Flow: Cash flow from operations and cash flow from investments.
Interest coverage ratio, times: Earnings before tax plus interest expense to interest expense.
Investments in intangible assets and tangible fixed assets: Investments excluding acquisitions and divestments of companies.
Net debt: Interest-bearing provisions and liabilities less interest-bearing assets and cash and cash equivalents.
Net debt/EBITDA: Average net debt in relation to EBITDA, excluding one-off items and restructuring costs, based on a rolling twelve-month calculation.
Net debt/equity ratio: Net debt to shareholders' equity including non-controlling interests.
One-off items and restructuring costs: Items not included in the ordinary business transactions and when each amount is significant in size and therefore has an effect on the profit or loss and key performance indicators, are classified as one-off items and restructuring costs.
Operating margin: Operating profit expressed as a percentage of net sales.
Operating profit: Profit before financial items and tax.
Operating profit before depreciation/amortisation - EBITDA: Operating profit before planned depreciation/amortisation.
Organic growth: Change in sales adjusted for currency effects as well as acquisitions and divestments compared with the same period of the previous year.
Profit margin: Earnings before tax expressed as a percentage of net sales.
Return on capital employed: Earnings before tax after adding back financial expenses based on a rolling twelve-month calculation, expressed as a percentage of average capital employed1). Capital employed refers to total assets less non-interest-bearing provisions and liabilities.
Return on shareholders' equity: Profit for the period attributable to Parent company shareholders based on a rolling twelve-month calculation, expressed as a percentage of average shareholders' equity1) attributable to Parent company shareholders.
Shareholders' equity per share, SEK: Shareholders' equity attributable to Parent company shareholders to number of shares outstanding at the end of the period.
Total operations: Continuing operations and discontinued operations.
1) Average capital is based on the quarterly value.
Lindab Group had sales of SEK 13,114 m in 2023. Lindab has approximately 5,000 employees in 20 countries.
Lindab is the market-leading ventilation company in Europe, specialised in air distribution and air diffusion.
In 2023, the Nordic region accounted for 45 percent, Western Europe for 42 percent, Central Europe for 12 percent and Other markets for 1 percent of total sales.
The share is listed on Nasdaq Stockholm, Large Cap, under the ticker LIAB.
Lindab develops, manufactures, markets and distributes products for a better indoor climate and simplified construction.
Lindab's offering includes products and entire systems for energy-efficient ventilation and a healthy indoor climate. In some countries, Lindab also has an extensive range of roof, wall and rainwater systems.
The products are characterised by high quality, ease of installation, energy and environmental thinking and are delivered with a high level of service, which together gives an increased customer value.
Lindab's value chain is characterised by a good balance between centralised and decentralised functions. The distribution network has been built up with the goal of being close to the customer. Sales are made through approximately 150 own pro-shops and more than 3,000 independent retailers.
| Share price performance: | 56% |
|---|---|
| Average share turnover/day: | 159,483 |
| Highest price paid (December 15): | 209.10 SEK |
| Lowest price paid (January 2): | 127.70 SEK |
| Closing price December 29: | 199.10 SEK |
| Market cap December 29: | SEK 15,301 m |
| Total no. of shares: | 78,842,820 |
| - whereof treasury shares: | 1,990,838 |
| - whereof outstanding shares: | 76,851,982 |
Share price performance 2023, SEK
A live webcast will be held at 10:00 am (CET) on 7 February. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Lars Ynner CFO.
If you wish to participate via webcast please use the link below.
https://ir.financialhearings.com/lindab-q4-report-2023
If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=50047257
For more information see lindabgroup.com
| Annual Report | March, 2024 |
|---|---|
| Interim Report January - March | 3 May, 2024 |
| Annual General Meeting | 14 May, 2024 |
| Interim Report January - June | 19 July, 2024 |
| Interim Report January - September | 24 October, 2024 |
| All financial reports will be published at | |
| lindabgroup.com. |
This information is information that Lindab International AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 07:40 am (CET) on 7 February, 2024.
Ola Ringdahl, President and CEO | E-mail: [email protected] Lars Ynner, CFO | E-mail: [email protected] Catharina Paulcén, Corporate Communication | E-mail: [email protected]
Telephone +46 (0) 431 850 00 For more information, please visit lindabgroup.com.
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