In This Article:
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Revenue: SEK37.5 billion, 1% increase, 5% up currency adjusted.
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EBIT: SEK6.3 billion, 8% increase, record high for Q3.
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EBIT Margin: 16.7%, highest for Q3 in seven years.
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EBITA Margin: 17.7%, record high since reporting began.
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Cash Conversion: 118%, excellent performance.
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Earnings Per Share (EPS): 10% increase.
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Organic Growth: Slight positive growth, currency adjusted sales growth of 5%.
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Acquisitions: Seven acquisitions in Q3, 18 in the first nine months, representing annualized sales of SEK7 billion.
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Operating Cash Flow: SEK6.3 billion, strong cash conversion.
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Net Debt: Reduced by SEK1.3 billion, net debt at 2.3 times EBITDA.
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Regional Performance: Organic growth of 1% in North America, 2% in Europe, 13% in Africa; declines in Oceania (-5%) and Asia (-18%).
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Operating Margin by Division: Americas at 19.2%, Asia Pacific at 7.9%, Global Tech at 18.9%, Entrance Systems at 17.1%.
Release Date: October 23, 2024
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 a record high EBIT of SEK6.3 billion, with an EBIT margin of 16.7%, the highest for Q3 in seven years.
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The company achieved a strong cash conversion rate of 118%, indicating efficient management of working capital.
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Assa Abloy AB (ASAZF) completed seven acquisitions in Q3, contributing to a 4% net acquired growth, and 18 acquisitions in the first nine months of 2024.
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The EBITA margin reached a record high of 17.7%, showcasing improved profitability.
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Positive organic growth was reported in key regions such as North America and Europe, with North America showing a 1% organic growth and Europe 2%.
Negative Points
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The residential market remains challenging across all major regions, impacting overall growth potential.
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Asia, particularly Greater China, experienced a significant decline with an 18% drop in organic growth due to deteriorating market conditions.
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The company faced a negative currency impact of 3%, primarily due to SEK versus the dollar.
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Organic sales in the Asia Pacific region declined by 6%, with negative sales growth in most parts of the division.
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Entrance Systems saw a 2% decline in organic sales, affected by challenging conditions in the logistics vertical and the residential market.
Q & A Highlights
Q: Can you comment on the start of the current quarter and any signs of recovery mentioned in your outlook? A: It's difficult to judge the run rate due to holiday months, but September and October have shown similar run rates. We haven't seen significant changes up or down.