Company Announcement No. 037-2023 – Inside Information
Vedbaek, 12 May 2023

WindowMaster has experienced lower order Intake and revenue than expected in the first four months of 2023 and has consequently adjusted the guidance for 2023 downwards.

The lower order intake and revenue in the first four months of 2023 is primarily related to one big OEM customer, where order intake has dropped to index 59 compared to budget due to the market situation of this customer. The missing order intake and revenue is not expected to be recuperated in the remainder of 2023. This will also have a negative impact on inventories, as our stock levels has been adjusted in line with the customer’s forecasted sales.

Additionally, we have experienced postponed decision making – mainly in North America and United Kingdom – both on projects in the pipeline and on orders in the backlog, which has resulted in delayed order intake, revenue and EBITDA. The projects are still very active and are not expected to be lost or cancelled – only delayed. As the organization is in place to execute on these projects, new and smaller projects will have to fill the gap. However, we do not expect to be able to fully recuperate the lost revenue, and we therefore expect EBITDA to be negatively impacted by temporary under-absorption. It is not expected to adjust the fixed costs and organization as this is seen as a transient correction in the market and the fact that there is scarce capacity on skilled labor.

The remaining part of the business (Over-the-counter sales and Service business) remains fully intact and in line with expectations, just as the project pipeline in all markets is growing according to plan – however with pushed timeline.

The guidance for 2023 has been updated as follows:

For further information:

CEO, Erik Boyter
M: +45 4035 0267
Mail: ekb.dk@windowmaster.com
WindowMaster International A/S
Skelstedet 13
2950 Vedbæk
Denmark
 

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