Strong performance in the second quarterSecond quarter- Net sales increased by 17% to
SEK 34,474 M (29,466), with organic growth of 3% (13) and acquired net growth of 6% (0). Exchange-rates affected sales by 8% (12). -
Very strong organic sales growth in Global Technologies, good growth in the
Americas , stable in Entrance Systems, while organic sales declined in Asia Pacific and EMEIA. -
The acquisition of
Spectrum Brands' Hardware and Home improvement division (HHI) was completed in June. -
The divestment of
Emtek and Smart Residential business in the U.S. and Canada to Fortune Brands was completed in June. The divestment gain, including exit costs, totaled SEK 3,661 M for the quarter. -
Impairment of goodwill and other intangible assets in Global Technologies led to one-off costs of
SEK 2,268 M before taxes. -
Operating income1 (EBIT) increased by 25% and amounted to
SEK 5,500 M (4,406), with an operating margin of 16.0% (15.0). -
The operating margin1 (EBIT) excluding the acquisition of HHI and divestment of the
Emtek /U.S. Smart Residential was 16.7%. -
Net income1 amounted to
SEK 3,731 M (3,156). -
Earnings per share1 amounted to
SEK 3.36 (2.84). -
Operating cash flow amounted to
SEK 6,671 M (3,787).
- Net sales increased by 17% to
SEK 34,474 M (29,466), with organic growth of 3% (13) and acquired net growth of 6% (0). Exchange-rates affected sales by 8% (12). -
Very strong organic sales growth in Global Technologies, good growth in the
Americas , stable in Entrance Systems, while organic sales declined inAsia Pacific and EMEIA. -
The acquisition of
Spectrum Brands' Hardware and Home improvement division (HHI) was completed in June. -
The divestment of
Emtek and Smart Residential business in theU.S. andCanada to Fortune Brands was completed in June. The divestment gain, including exit costs, totaledSEK 3,661 M for the quarter. -
Impairment of goodwill and other intangible assets in Global Technologies led to one-off costs of
SEK 2,268 M before taxes. -
Operating income1 (EBIT) increased by 25% and amounted to
SEK 5,500 M (4,406), with an operating margin of 16.0% (15.0). -
The operating margin1 (EBIT) excluding the acquisition of HHI and divestment of the
Emtek /U.S. Smart Residential was 16.7%. -
Net income1 amounted to
SEK 3,731 M (3,156). -
Earnings per share1 amounted to
SEK 3.36 (2.84). -
Operating cash flow amounted to
SEK 6,671 M (3,787).
Sales and income
Second quarter | First half-year | |||||
2022 | 2023 | Δ | 2022 | 2023 | Δ | |
Sales, SEK M | 29,466 | 34,474 | 17% | 56,057 | 66,865 | 19% |
Of which: | ||||||
Organic growth | 3,324 | 897 | 3% | 6,610 | 3,115 | 5% |
Acquisitions and divestments | -16 | 2,002 | 6% | -68 | 3,346 | 6% |
Exchange-rate effects | 2,510 | 2,109 | 8% | 4,061 | 4,346 | 8% |
Operating income (EBIT)1, SEK M | 4,406 | 5,500 | 25% | 8,407 | 10,686 | 27% |
Operating margin (EBITA) 1, % | 15.5% | 16.6% | 15.5% | 16.6% | ||
Operating margin (EBIT)1, % | 15.0% | 16.0% | 15.0% | 16.0% | ||
Income before tax1, SEK M | 4,208 | 5,054 | 20% | 8,019 | 9,898 | 23% |
Net income1, SEK M | 3,156 | 3,731 | 18% | 6,015 | 7,423 | 23% |
Operating cash flow, SEK M | 3,787 | 6,671 | 76% | 4,699 | 10,741 | 129% |
Earnings per share1, SEK | 2.84 | 3.36 | 18% | 5.41 | 6.68 | 23% |
1 Adjusted for items affecting comparability. Please see the section 'Items affecting comparability' in the report for further details about the financial effects.
Comments by the President and CEO
Strong performance in the second quarter
Following a very strong start to the year, I am pleased to report continued good sales growth with very strong operating margin improvement in the second quarter despite a weak residential market. Our sales grew organically by 3%, acquired net growth was 6% and currency contributed 8%.
Global Technologies delivered very strong organic sales growth of 20% as we further reduced our order backlog in Physical Access Control and saw very strong growth in Hospitality. Activity levels in the
Our quarterly operating profit, excluding items affecting comparability, increased strongly by 25%. The corresponding operating margin, also excluding the acquisition of HHI and divestment of the
Further cost measures
In light of the lower residential construction levels, we have diligently implemented short term cost measures to protect our profitability. During 2023, we expect to realize around
Even if there is a short-term deceleration in the market, we are confident that the long-term growth drivers for access control remain. This includes the transition to electromechanical products, whose sales after currency adjustment grew by 16% in the quarter. We are therefore continuing to invest in R&D. It is the enabler for growth and creates new opportunities. Our dedication to innovation will continue to allow us to stay ahead and respond effectively to the evolving and growing overall market.
We are happy to welcome HHI to the Group
After reaching a settlement with the
We would also like to extend our appreciation to the
Execution of our overall acquisition strategy will continue with an active pipeline.
Thank you for your continued trust in
President and CEO
Further information can be obtained from:
President and CEO, tel. no: +46 8 506 485 82
Erik Pieder,
Executive Vice President and CFO, tel.no: +46 8 506 485 72
Björn Tibell,
Head of Investor Relations, tel. no: +46 70 275 67 68,
e-mail: bjorn.tibell@assaabloy.com
It is possible to submit questions by telephone on: 08-505 100 31, +44 207 107 0613 or +1 631 570 5613
This is information that
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https://mb.cision.com/Main/7333/3806992/2195429.pdf
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