NIBE (MW) delivered a solid Q4 report just above expectations. Full year revenue reached SEK 27.1bn (25.3m) and EBIT 3.5 (3.0m), corresponding to an operating margin of 13% (12%). The operating margin was comfortly above the target of 10%.
Revenue grew 7% y/y, which is fully linked to acquisitions and could be put in contrast to the annual growth target of 20%. Organic growth fell back 0.9% y-o-y.
Reported net debt decreased to 5.9bn (6.5bn) which in combination of improved earnings, improved reported ND/EBITDA to 1.1x (Q4 19: 1.6x). We note that Nibe has gradually improved this ratio from above 3.0x in 2014.
Reported equity ratio reached 46% (47%) which creates a comfortable headroom to the financial policy of minimum 30%.
The strong revenues development during the second part of 2020 came on the back of a good demand pick-up following the weaker sentiment in Q2. The margin improvements were driven by rigid cost control and internal efficiency initiatives.
Dividend was proposed to increase to SEK 1.55/share (1.4) which was slightly above market expectations.
Overall, another credit supporting report from Nibe.
