In This Article:
STOCKHOLM, April 24, 2024 /PRNewswire/ --
Strong execution in a challenging market
First quarter
-
Net sales increased by 9% to SEK 35,200 M (32,391), with organic growth of –2% (8) and acquired net growth of 11% (5). Exchange- rates affected sales by 0% (9).
-
Organic sales growth was stable in Entrance Systems, but declined in Americas, Asia Pacific, EMEIA and in Global Technologies.
-
Three acquisitions with combined annual sales of about SEK 2,000 M were completed in the quarter. The divestment of PACA in France was finalized.
-
Operating income1 (EBIT) increased by 5% and amounted to SEK 5,427 M (5,186), with an operating margin of 15.4% (16.0).
-
The operating margin1 (EBIT) excluding the acquisition of HHI and divestment of the Emtek/U.S. Smart Residential business was 16.3%.
-
Net income1 amounted to SEK 3,462 M (3,692).
-
Earnings per share1 amounted to SEK 3.12 (3.32).
-
Operating cash flow amounted to SEK 3,096 M (4,069).
Sales and income
| | Full year | | | | First quarter | | ||
| | 2022 | 2023 | | Δ | | 2023 | 2024 | Δ |
| Sales, SEK M | 120,793 | 140,716 | | 16 % | | 32,391 | 35,200 | 9 % |
| Of which: | | | | | | | | |
| Organic growth | 13,007 | 3,393 | | 3 % | | 2,218 | –762 | –2% |
| Acquisitions and divestments | 2,126 | 10,651 | | 8 % | | 1,344 | 3,607 | 11 % |
| Exchange-rate effects | 10,653 | 5,879 | | 5 % | | 2,237 | –35 | 0 % |
| Operating income (EBIT)1, SEK M | 18,532 | 22,185 | | 20 % | | 5,186 | 5,427 | 5 % |
| Operating margin (EBITA)1, % | 15.9 % | 16.5 % | | | | 16.6 % | 16.3 % | |
| Operating margin (EBIT)1, % | 15.3 % | 15.8 % | | | | 16.0 % | 15.4 % | |
| Income before tax1, SEK M | 17,521 | 19,654 | | 12 % | | 4,843 | 4,616 | –5% |
| Net income1, SEK M | 13,296 | 15,049 | | 13 % | | 3,692 | 3,462 | –6% |
| Operating cash flow, SEK M | 15,808 | 25,232 | | 60 % | | 4,069 | 3,096 | –24% |
| Earnings per share1, SEK | 11.97 | 13.54 | | 13 % | | 3.32 | 3.12 | –6% |
| 1 Excluding items affecting comparability. Please see the section "Items affecting comparability" in the report for further details about the financial effects in 2024. For information about items affecting comparability in 2023, please see the Year-end report 2023, available at assaabloy.com. | ||||||||
Comments by the President and CEO
Strong execution in a challenging market
The year took off with strong sales growth of 9%, driven by very strong net acquired growth of 11%, which was partly offset by an organic sales decline of –2%. The organic sales were affected by three fewer working days in March, the most important month of the quarter and a continued weak residential market. Entrance Systems' organic sales were stable with very strong growth in Perimeter and strong growth in the Pedestrian segment. Organic sales in Americas and EMEIA declined by –1% and –3% respectively. Asia Pacific's organic sales declined by –3% due to a weak Chinese market and negative intra-group sales growth. Global Technologies' organic sales declined by –9% against a high corresponding figure last year due to the significant reduction of the backlog a year ago.