PRESS RELEASE
12 February 2025
A challenging market situation dampened demand for Lindab's products in the fourth quarter, affecting both sales and profitability. Sales for Ventilation Systems increased slightly due to completed acquisitions, while sales for Profile Systems decreased. The fourth quarter was impacted by one-time costs due to the strong measures announced to strengthen profitability. The focus in the first half of 2025 is to capture the full effect of the measures.
Fourth quarter 2024
- Net sales increased by 1 percent to SEK 3,308 m (3,274). Organic sales decreased by 5 percent while acquisitions contributed positively by 6 percent.
- Adjusted1) operating profit amounted to SEK 177 m (261).
- One-off items and restructuring costs amounted to SEK -278 m (-), of which SEK 36 m was a negative effect on cash flow.
- Operating profit amounted to SEK -101 m (261).
- Adjusted1) operating margin amounted to 5.4 percent (8.0).
- Operating margin amounted to -3.1 percent (8.0).
- Profit for the period amounted to SEK -173 m (190).
- Earnings per share before and after dilution amounted to SEK -2.24 (2.48).
- Cash flow from operating activities increased to SEK 629 m (589).
- During the quarter Lindab acquired all shares and voting rights in the French ventilation company Acomat and the acquisition of the French ventilation company ATIB was finalised.
- During the quarter Lindab announced that structural measures and cost reductions are being implemented to strengthen profitability and that Lindab is restructuring its operations in Eastern Europe to fully focus on ventilation.
January - December 2024
- Net sales increased by 2 percent to SEK 13,323 m (13,114). Organic sales decreased by 5 percent while acquisitions contributed positively by 7 percent.
- Adjusted1) operating profit amounted to SEK 1,044 m (1,178).
- One-off items and restructuring costs amounted to SEK -308 m (-), of which SEK 36 m was a negative effect on cash flow.
- Operating profit amounted to SEK 736 m (1,178).
- Adjusted1) operating margin amounted to 7.8 percent (9.0).
- Operating margin amounted to 5.5 percent (9.0).
- Profit for the period amounted to SEK 315 m (849).
- Earnings per share before and after dilution amounted to SEK 4.10 (11.07).
- Cash flow from operating activities amounted to SEK 1,438 m (1,711).
- The Board of Directors proposes a dividend of SEK 5.40 (5.40) per share.
1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.
Lindab's President and CEO, Ola Ringdahl, comments:
"In 2024, Lindab achieved its highest sales ever driven by completed acquisitions. The market situation has been challenging throughout the year. During the fourth quarter, both sales and results were lower than planned. We have announced strong measures to strengthen profitability, and the current priority is to capture the full effect of those measures.
The recovery has not yet begun in the Nordics, while activity in several countries in the central parts of Europe is significantly lower than normal. This had a negative impact on the end of the year, with low sales volumes and an unfavourable product mix.
In the fourth quarter, we have announced strong actions to increase profitability in 2025. Our primary focus in the first half of 2025 is to realise the full impact of those measures. The planned personnel reductions and closure of ventilation branches in ten locations are proceeding according to plan. In Romania, Slovakia and Hungary, negotiations are underway to divest the local profile businesses, with a positive outlook for completion within the next few months.
Ventilation Systems grows through acquisitions
With a rapid pace of acquisitions, the business area has achieved the highest sales ever for a fourth quarter. Despite this, the result for the quarter was lower than planned due to continued negative organic growth and an unexpectedly weak result in December.
In 2024, the weak economic environment resulted in negative organic growth in several key markets, including Germany, France and Sweden. The decline in the German market was particularly severe in the second half of the year. This downturn also impacted the recently acquired Airmaster, leading to a substantial loss in sales in Germany and a notable weakening of its profitability. The business area's adjusted operating margin for the full year was 9.1 percent. The cost measures we have announced should contribute to increasing profitability to over 10 percent in 2025.
Restructuring of Profile Systems
For the profile business, 2024 has been characterised by reduced construction activity and a sharp decline in volume. For several years, profitability in Eastern Europe has been unsatisfactory due to weak market development, volatile raw material prices and high cost inflation. The future potential for Profile Systems in the region is considered limited and Lindab will therefore exit these markets in 2025. During the fourth quarter, a relocation of the sandwich panel business from Luleå to Piteå was initiated. In the short term, the relocation means lost or deferred revenue during the period November 2024 to March 2025.
High pace of acquisitions during the year
Six acquisitions were completed in 2024, creating a solid platform for growth by strengthening key product areas and broadening distribution. Since 2020, Lindab has completed 28 acquisitions, which have contributed positively to our growth and profitability. Acquisitions will continue to be an important part of Lindab's growth strategy. We plan further acquisitions in 2025 and will also focus on the announced divestments to further streamline the Group.
Dividend
The strong cash flow, in combination with Lindab's good financial position, enables a proposed dividend of SEK 5.40 per share. It is important for us to deliver to our shareholders at the same time as we further develop Lindab.
Market outlook
The market is difficult to predict and recovery is slow. We plan for a continued slow market in the first half of 2025, but we anticipate that demand will start to pick up in the second half of the year. Our activities are developed and implemented with the aim of achieving our financial targets. Should conditions change, we are prepared to take further action to strengthen profitability.
Prepared for increased demand
The long-term demand for Lindab's ventilation products appears strong. With a growing focus on energy-efficient solutions that create a healthy indoor climate, there are strong, positive drivers in the market in which we operate. There is also increasing demand for products with a strong sustainability profile. This focus on energy efficiency and sustainability will lead to ventilation being a priority in both new construction and renovation.
As markets rebound, Lindab is well placed to quickly capitalise on increased demand. With completed investments in increased capacity and automation, production can be scaled up without significant cost increases. Combined with the announced cost-saving measures, this creates favourable conditions for a noticeable improvement in the operating margin.
Finally, I would like to express my appreciation to all customers who continue to choose Lindab and extend my gratitude to all employees for their dedication and hard work during a challenging year."
Live webcast
A live webcast will be held at 10:00 am (CET) on February 12. 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.
Q4 Report 2024
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.
Call Access
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 12-02-2025 07:40 CET.
Contacts
Ola Ringdahl
President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00
Lars Ynner
CFO
E-mail: lars.ynner@lindab.com
Phone: +46 (0) 431 850 00
Fredrik Wahrolén
Head of Communications
E-mail: fredrik.wahrolen@lindab.com
Mobile: +46 (0) 705 393 379
Lindab in brief
Lindab is a leading ventilation company in Europe. Lindab develops, manufactures, markets and distributes products and systems for energy-efficient ventilation and a healthy indoor climate. The products are characterised by high quality, ease of installation and environmental thinking.
The Group had sales of SEK 13,323 m in 2024 and is established in 20 countries with approximately 5,000 employees. Western Europe accounted for 44 percent of sales in 2024, the Nordic region for 42 percent, Central Europe for 10 percent and Other markets for 4 percent.
The share is listed on the Nasdaq Stockholm, Large Cap, under the ticker symbol LIAB.
