Inwido AB (publ) Q2 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : It's Carl Ragnerstam from Nordea. I have a few questions. First of all, you keep a quite cautious view on the Nordic, new construction market. Do you -- when do you expect it to hit bottom?

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Okay, because it was actually my second question. Given the soft Nordic outlook and the backlog which is down 14%, I mean, you need to probably to take actions to adjust SG&A to the current market demand. What's your plan regarding that?

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : What levels do you plan to reduce SG&A? And when do you expect them to be fully materialized or fully ramped?

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : It's split by Sweden and Finland, I guess. Or just in Sweden or... without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JULY 15, 2019 / 8:00AM, INWI.ST - Q2 2019 Inwido AB (publ) Earnings Call

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Okay. And the final one for me probably. Did -- I mean in terms of working capital and strengthening balance sheet, do you still have any sort of low-hanging fruits in terms of optimizing working capital to strengthen the balance sheet? Or...

Question: Johan Dahl - Danske Bank Markets Equity Research - Analyst : A couple of questions, please. Firstly, could you talk a little bit about cost inflation/deflation and sort of pricing in the market right now? I mean it's been a material issue for you in the past couple of quarters and not much mentioning of it in this report. But just to hear your view on that, please.

Question: Johan Dahl - Danske Bank Markets Equity Research - Analyst : Stable cost, stable prices, is that basically the message?

Question: Johan Dahl - Danske Bank Markets Equity Research - Analyst : Second question just on Sweden and Finland, I mean there's lots of moving parts here. You talk about the changing sort of retail environment, a weak market. But can you just pinpoint exactly if you look particularly on Elitf÷nster and [Benelux], how you sort of assess the situation? You say without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JULY 15, 2019 / 8:00AM, INWI.ST - Q2 2019 Inwido AB (publ) Earnings Call that the group is gaining market share, I presume that is not the situation for these 2 units. And also if you could be a bit more specific on actions going forward for these units.

Question: Johan Dahl - Danske Bank Markets Equity Research - Analyst : But did the landscape, in fact, and the -- I mean, it has gone on for some time now.

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : I have a couple of questions regarding the initiative that you mentioned focusing on the consumer renovation market. Can you talk a little bit about them? Are these more long-term initiatives? Or do you expect some effect also in the near term?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : And I guess a little bit of [Simplify] is one of these. Could you just give us a couple of examples which are the most significant initiatives focusing on the consumer market?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : You also mentioned Germany. Are you producing in -- for Germany in your Austrian factory? And how is the situation looking at capacity utilization in that factory now that you used to have some problems before?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : And then could you -- in your estimate, in your view, how big was the calendar effect this quarter?

Question: Johan Dahl - Danske Bank Markets Equity Research - Analyst : Just a quick follow-up. You talked about acquisitions. I mean I appreciate the balance -- it is what it is and your ambition is short term here, but you also talked about high valuations. Are we correct in sensing some sort of shift in attitude towards acquisitions right now? Is that sort of postponed for the last -- this half-year year?

Question: Johan Dahl - Danske Bank Markets Equity Research - Analyst : And is it also a reflection of sort of a less-optimistic market outlook for you guys?