Inwido Shares Fall 9% as Q2 Orders Decline Due to Weak Household Demand

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Inwido Shares dropped over 9% on Monday after a tough second quarter. The company reported a 7% decline in order intake, blaming weak household demand and market uncertainty. Despite this, net sales edged up to SEK 2.34 billion, and the order backlog grew 9%, offering hope for investors watching the Stock Market.

This drop in Inwido Shares has sparked questions about the company’s future. Sales held steady, and profits stayed flat, showing resilience in a shaky market. We’ll break down the Q2 results, explore what’s driving the Stock Market reaction, and look at what’s next for Inwido.

Breaking Down Inwido’s Q2 Results

  • Net sales increased slightly to SEK 2.34 billion, up from SEK 2.33 billion in Q2 last year.
  • Organic growth reached 3%, showing strength in Inwido’s core business.
  • The company’s operating profit stayed steady at SEK 264 million, with a solid 11.3% margin.
  • EBIT rose to SEK 237 million.
  • The company’s earnings per share (EPS) went up to SEK 2.69, from SEK 2.52.
  • Orders fell by 7%, which put some pressure on Inwido’s stock price.
  • However, the order backlog grew 9% to SEK 2.83 billion, signaling potential future growth.

Why Did Order Intake Drop?

The 7% drop in order intake stems from a tough comparison. Last year, Inwido’s Irish unit, Carlson, landed a huge one-off order. Without that, this year’s numbers look weaker.

Weak household demand also played a role. High inflation and interest rates are making families cut back on spending, which is hurting Inwido’s orders and rattling the stock market..

Still, that 9% jump in the order backlog shows promise. It means Inwido Shares could rebound if demand picks up.

How the Stock Market Responded

The Stock Market didn’t wait long to react. Inwido Shares fell over 9% as investors fretted over the order intake dip. It’s a sign of nerves about future growth.

But not all signs point to trouble. Steady sales and profits, plus a growing backlog, suggest the drop might be overblown. The stronger Swedish krona cut earnings by SEK 9 million, a hiccup not tied to core performance.

A Look at Inwido’s Business Segments

Inwido’s performance varies across its units. Here’s a quick rundown:

  1. Scandinavia: Sales up 5%, EBITA margin at 14.5%. A bright spot for growth.
  2. Eastern Europe: Sales rose 1%, margin hit 6.6%. Slow but steady gains.
  3. e-Commerce: Sales dropped 7%, margin fell to 9.2%. A weak link.
  4. Western Europe: Sales down 8%, margin at 11.1%. Inflation hit hard, especially in the UK.

Scandinavia shines, but e-Commerce and Western Europe drag on Inwido Shares. The Stock Market sees these ups and downs, fueling the mixed outlook.

Inwido’s First Half of the Year

Zooming out, the January to June period looks solid. Net sales climbed 5% to SEK 4.34 billion, with 6% growth from the company’s core operations. Operating profit went up to SEK 375 million, hitting a solid 8.6% margin.

EBIT hit SEK 330 million, and earnings per share reached SEK 3.34. Return on operating capital improved to 13.4%, and net debt dropped to 1.2 times operating EBITDA.

This broader view shows Inwido Shares have a strong base, even with Q2’s order stumble shaking the Stock Market.

Final Thoughts on Inwido Shares

Inwido Shares took a 9% hit after a Q2 order dip, but the company stands firm. Sales grew, profits held, and the backlog swelled, offering hope despite Stock Market jitters. With smart moves, Inwido could turn this around.

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.