In This Article:
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Revenue: SEK38 billion, up 8% (2% organic growth, 5% net acquisition growth, 1% currency impact).
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Operating Margin (EBIT): 14.9%, with a 140 basis point dilution due to one-off acquisition and divestment-related costs.
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EBITA Margin: 15.9%.
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EBIT: SEK5.7 billion, up 4%.
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Earnings Per Share (EPS): Up 3%.
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Cash Flow: SEK2.4 billion, with a cash conversion of 51%.
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Acquisitions: Six acquisitions completed, representing annualized sales of around SEK3.6 billion.
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Organic Sales Growth by Region: North America +2%, South America +7%, Europe +2%, Africa +8%, Oceania -1%, Asia -6%.
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Operating Margin by Division: EMEIA 13.8%, Americas 17.1%, Asia Pacific 4.1%, Global Tech 13.7%, Entrance Systems 16.8%.
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Return on Capital Employed: 14.2%, down 40 basis points from last year.
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Net Debt to EBITDA: 2.4.
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Net Debt to Equity: 70%.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Assa Abloy AB (ASAZF) reported an 8% increase in top-line growth, with 2% organic growth, 5% from acquisitions, and 1% from currency effects.
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The company completed six acquisitions in the quarter, contributing to a strong acquisition-driven growth.
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Strong sales growth was observed in the Global Technologies and Americas divisions, with positive developments in commercial non-residential sectors.
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The company launched the MFP10 manufacturing footprint program, expected to yield SEK1 billion in savings by 2027.
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Assa Abloy AB (ASAZF) maintained a strong balance sheet, allowing continued pursuit of its acquisition strategy.
Negative Points
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The operating margin was diluted by 140 basis points due to one-off acquisition and divestment-related costs.
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Sales declined in the Asia Pacific region, particularly in Greater China, due to deteriorating market conditions.
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The residential market faced challenges across multiple regions, impacted by high interest rates and economic uncertainty.
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Operating cash flow decreased by 22% compared to the previous year, partly due to increased inventory levels.
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The company faced significant tariff-related challenges, particularly with a 145% tariff on Chinese imports, affecting pricing strategies.
Q & A Highlights
Q: Can you elaborate on the actions taken regarding tariffs and pricing, and how you expect this to evolve over the year? A: Nico Delvaux, CEO, explained that the company aims to increase prices by 1.5% this year, excluding tariffs. Tariffs, however, are unpredictable and can change daily. Currently, Assa Abloy produces 70% of its US sales domestically, with 15% from North America and 15% from other regions, mainly China. The company has already raised prices to offset normal tariffs and plans significant increases if the 145% China tariffs persist. Delvaux noted that competitors face similar challenges, and the company is exploring alternative production locations.