Inwido (INWI) Q2 2024 earnings summary

Executive summary

• Order intake increased 22% year-over-year in Q2, with all business areas contributing and order backlog up 68%, driven by acquisitions and large orders in Ireland.

• Net sales rose 3% to SEK 2,331 million in Q2, but declined 5% organically; H1 net sales were SEK 4,142 million, down 5% year-over-year.

• Operating EBITA/EBITDA reached SEK 263 million in Q2 (margin 11.3%), up slightly from last year, but margin declined from 11.6%; H1 margin was 8.5%.

• E-commerce and Western Europe segments delivered strong growth and profitability, with e-commerce margin up to 10.8% and Western Europe sales up 108%.

• Sustainability efforts recognized externally, including Financial Times climate leader ranking and innovation awards.

Financial highlights

• Q2 net sales: SEK 2,331 million (+3% y/y); H1 net sales: SEK 4,142 million (-5% y/y).

• Q2 operating EBITA: SEK 263 million (+1%); margin 11.3% (11.6% last year); H1 margin 8.5% (9.9%).

• Q2 profit after tax: SEK 154 million (-22%); EPS SEK 2.52 (down from 3.36); H1 EPS SEK 2.89 (down from 5.26).

• Gross margin declined from 26.7% to 25.6% in Q2, mainly due to SEK 23 million in restructuring and inventory write-downs.

• Net debt/operating EBITDA increased to 1.4x (0.7x last year), but remains within target; cash flow from operations stable.

Outlook and guidance

• Cautious optimism for H2 2024, supported by a strong order book, lower inflation, and potential rate cuts.

• Organic order intake up 10% excluding acquisitions; long-term target of SEK 20bn in annual sales by 2030.

• M&A activity is increasing, with a healthy pipeline and improved acquisition climate.

• Gross margin expected to remain flat in the near term as material prices stabilize; e-commerce margins recovering but below pre-pandemic levels.

• EU energy efficiency directives and renovation market trends expected to support long-term demand.