CEO Jens Birgersson comments on the second-quarter results announced today:
"Overall, we're pleased with our H1 and Q2 2017 results. For the half-year, net sales increased 5.0% and EBIT margin reached almost 10%. As expected, the sales price increases we're implementing are beginning to show. Pricing will continue to be a major focus going forward, and we see positive market developments in the second half of the year, including an increasing interest for fire safe stone wool products. With better visibility for the remainder of the year, we are also increasing our guidance for sales growth".
- H1 2017 net sales increased 5.0% (H1 2016: 2.6%) in local currencies, driven by favourable market conditions. Q2 net sales grew 4.2% (Q2 2016: 3.7%) in local currencies, which in light of seasonal impact is a satisfactory development. In reported figures, net sales grew by 6.6% in H1 2017 (H1 2016: -0.7%).
- Full-year 2017 Outlook for net sales growth upgraded to 5-7% in local currencies.
- Continued strong focus on increasing sales prices to offset significant increase in input cost, though with a time lag.
- H1 2017 EBIT increased by 5% to EUR 110 million (H1 2016: EUR 104 million) equal to a 9.8% EBIT margin (H1 2016: 10.0%). Q2 EBIT was EUR 64 million (Q2 2016: EUR 63 million), with the EBIT margin reaching 10.9% (Q2 2016: 11.4%).
- H1 2017 investment expenditure was EUR 63 million (H1 2016: EUR 70 million).
- Free cash flow at level with last year amounting to EUR 13 million (H1 2016: EUR 13 million).
- Net profit for H1 2017 reached EUR 79 million (H1 2016: EUR 73 million), an improvement of EUR 6 million.
Full year Outlook 2017 upgraded
- The Group's net sales are now expected to reach a growth of 5-7% in local currencies (previously announced 2-4%).
- EBIT margin is still expected to be slightly above 10%.
- Investment expenditure is now expected at around EUR 150 million excluding acquisitions (previously announced EUR 130 million).