Inwido's Vision: A Roadmap to Sustainable Growth and Landmark Contracts
December 12, 2024, 6:20 pm
Inwido, a titan in the window and door industry, recently showcased its ambitious roadmap at the Capital Markets Day held in Stockholm. The event, hosted on December 11, 2024, marked a pivotal moment for the company as it outlined its strategy to reach SEK 20 billion in net sales by 2030. This target is not just a number; it represents a vision for sustainable growth and market leadership.
Fredrik Meuller, Inwido's President and CEO, opened the day with reflections on his first seven months in the role. He emphasized the company's strong foundation, built on a decade of steady growth and profitability. Inwido is not just another player in the market; it is a leader, ready to navigate the complexities of a rapidly changing landscape.
The spotlight turned to the Sidey Group, acquired by Inwido in July 2023. Steve Hardy, the joint Managing Director, shared insights into how Sidey has thrived under Inwido's umbrella. The group recently secured landmark contracts worth £22.5 million with North Lanarkshire Council, marking a significant milestone in its history. These contracts involve the manufacture, supply, and installation of sustainable windows and doors for approximately 7,250 properties over four years. The potential for extension could double the contract value to £45 million, a testament to the trust placed in Inwido's capabilities.
The backdrop of these achievements is a market ripe for transformation. The EU's Green Deal is reshaping the industry, pushing companies toward sustainability. Inwido is well-positioned to capitalize on this shift. The fragmented market offers a wealth of M&A opportunities, allowing Inwido to expand its footprint both organically and through acquisitions.
Sustainability is not just a buzzword for Inwido; it is a core business driver. Presentations from Minna Keränen and Miikka Linna of Pihla Group highlighted how their commitment to sustainability aligns with market demands. The conversation shifted to leadership and organic growth, moderated by Lena Wessner, EVP of Human Resources, Organization & Sustainability. This dialogue underscored the importance of a cohesive strategy that integrates sustainability into every facet of the business.
The financial review, led by CFO Peter Welin, painted a picture of resilience. Despite recent market challenges, Inwido has maintained stable margins. The flexible business model allows for adjustments in capacity and costs, ensuring the company remains agile in a fluctuating market. The long-term financial goals are ambitious yet achievable: SEK 20 billion in turnover by 2030, a return on operating capital greater than 15%, and a net debt ratio below 2.5 times operating EBITDA.
A significant change in reporting was also announced. Starting from the Q4 report of 2024, Inwido will shift its sales split from Consumer/Industry to Consumer/Project sales. This new approach reflects a more nuanced understanding of market dynamics, with 63% of sales coming from consumers and 37% from projects as of September 2024. This split will provide clearer insights into order intake and backlog, essential for navigating the complexities of project sales.
Inwido's commitment to sustainability extends beyond its products. The company aims to be a key player in helping Scotland achieve its net-zero emissions goal by 2045. The contracts with North Lanarkshire Council are a step in that direction. They not only showcase Inwido's product range but also highlight its role in the broader environmental narrative.
The landscape of the window and door industry is changing. Inwido is at the forefront of this transformation. With a decentralized structure and a focus on consumer-driven markets, the company is poised for long-term sustainable growth. The acquisition of Sidey Group is a strategic move that enhances Inwido's capabilities and market reach.
As the day concluded, the message was clear: Inwido is not just aiming for growth; it is redefining what growth means in the context of sustainability. The roadmap to 2030 is ambitious, but with a strong foundation and a clear vision, Inwido is ready to lead the charge.
Inwido's journey is a testament to the power of strategic foresight. The company is not merely reacting to market changes; it is shaping them. With a focus on sustainability, innovation, and strategic partnerships, Inwido is setting the stage for a future where business success and environmental responsibility go hand in hand.
In conclusion, Inwido's Capital Markets Day was more than a presentation; it was a declaration of intent. The company is committed to becoming a leader in sustainable solutions for windows and doors. As it embarks on this journey, the industry will be watching closely. Inwido is not just building products; it is building a legacy. The road ahead is bright, and the possibilities are endless.
Fredrik Meuller, Inwido's President and CEO, opened the day with reflections on his first seven months in the role. He emphasized the company's strong foundation, built on a decade of steady growth and profitability. Inwido is not just another player in the market; it is a leader, ready to navigate the complexities of a rapidly changing landscape.
The spotlight turned to the Sidey Group, acquired by Inwido in July 2023. Steve Hardy, the joint Managing Director, shared insights into how Sidey has thrived under Inwido's umbrella. The group recently secured landmark contracts worth £22.5 million with North Lanarkshire Council, marking a significant milestone in its history. These contracts involve the manufacture, supply, and installation of sustainable windows and doors for approximately 7,250 properties over four years. The potential for extension could double the contract value to £45 million, a testament to the trust placed in Inwido's capabilities.
The backdrop of these achievements is a market ripe for transformation. The EU's Green Deal is reshaping the industry, pushing companies toward sustainability. Inwido is well-positioned to capitalize on this shift. The fragmented market offers a wealth of M&A opportunities, allowing Inwido to expand its footprint both organically and through acquisitions.
Sustainability is not just a buzzword for Inwido; it is a core business driver. Presentations from Minna Keränen and Miikka Linna of Pihla Group highlighted how their commitment to sustainability aligns with market demands. The conversation shifted to leadership and organic growth, moderated by Lena Wessner, EVP of Human Resources, Organization & Sustainability. This dialogue underscored the importance of a cohesive strategy that integrates sustainability into every facet of the business.
The financial review, led by CFO Peter Welin, painted a picture of resilience. Despite recent market challenges, Inwido has maintained stable margins. The flexible business model allows for adjustments in capacity and costs, ensuring the company remains agile in a fluctuating market. The long-term financial goals are ambitious yet achievable: SEK 20 billion in turnover by 2030, a return on operating capital greater than 15%, and a net debt ratio below 2.5 times operating EBITDA.
A significant change in reporting was also announced. Starting from the Q4 report of 2024, Inwido will shift its sales split from Consumer/Industry to Consumer/Project sales. This new approach reflects a more nuanced understanding of market dynamics, with 63% of sales coming from consumers and 37% from projects as of September 2024. This split will provide clearer insights into order intake and backlog, essential for navigating the complexities of project sales.
Inwido's commitment to sustainability extends beyond its products. The company aims to be a key player in helping Scotland achieve its net-zero emissions goal by 2045. The contracts with North Lanarkshire Council are a step in that direction. They not only showcase Inwido's product range but also highlight its role in the broader environmental narrative.
The landscape of the window and door industry is changing. Inwido is at the forefront of this transformation. With a decentralized structure and a focus on consumer-driven markets, the company is poised for long-term sustainable growth. The acquisition of Sidey Group is a strategic move that enhances Inwido's capabilities and market reach.
As the day concluded, the message was clear: Inwido is not just aiming for growth; it is redefining what growth means in the context of sustainability. The roadmap to 2030 is ambitious, but with a strong foundation and a clear vision, Inwido is ready to lead the charge.
Inwido's journey is a testament to the power of strategic foresight. The company is not merely reacting to market changes; it is shaping them. With a focus on sustainability, innovation, and strategic partnerships, Inwido is setting the stage for a future where business success and environmental responsibility go hand in hand.
In conclusion, Inwido's Capital Markets Day was more than a presentation; it was a declaration of intent. The company is committed to becoming a leader in sustainable solutions for windows and doors. As it embarks on this journey, the industry will be watching closely. Inwido is not just building products; it is building a legacy. The road ahead is bright, and the possibilities are endless.