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Assa Abloy Quarterly Report Q1 2024

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Assa Abloy's Q1 2024 report shows a 9% increase in net sales to SEK 35,200 M, driven by strong execution despite a challenging market. Organic growth was -2% while acquired net growth was 11%. The company saw stable growth in Entrance Systems but declines in other regions. Three acquisitions contributed to the positive sales performance.
Il rapporto del primo trimestre 2024 di Assa Abloy mostra un aumento del 9% nelle vendite nette, raggiungendo 35.200 milioni di SEK, grazie a un'ottima esecuzione nonostante un mercato difficile. La crescita organica è stata del -2% mentre la crescita netta derivante da acquisizioni è stata dell'11%. L'azienda ha registrato una crescita stabile nei Sistemi di Accesso ma ha riscontrato cali in altre regioni. Tre acquisizioni hanno contribuito positivamente alle prestazioni di vendita.
El informe del primer trimestre de 2024 de Assa Abloy muestra un incremento del 9% en las ventas netas, alcanzando los 35.200 millones de SEK, impulsado por una fuerte ejecución a pesar de un mercado desafiante. El crecimiento orgánico fue del -2% mientras que el crecimiento neto adquirido fue del 11%. La compañía experimentó un crecimiento estable en los Sistemas de Entrada pero declives en otras regiones. Tres adquisiciones contribuyeron al buen desempeño de las ventas.
앗사 아브로이의 2024년 1분기 보고서에 따르면, 어려운 시장 환경에도 불구하고 강력한 실행으로 인해 순매출이 9% 증가하여 35,200M SEK에 달했습니다. 유기적 성장은 -2%였으며 인수를 통한 순성장은 11%였습니다. 회사는 출입 시스템에서 안정적인 성장을 보았지만 다른 지역에서는 하락세를 보였습니다. 세 건의 인수가 긍정적인 매출 성과에 기여했습니다.
Le rapport du premier trimestre 2024 d'Assa Abloy montre une augmentation de 9% des ventes nettes à 35 200 millions de SEK, soutenue par une forte exécution malgré un marché difficile. La croissance organique était de -2% tandis que la croissance nette acquise était de 11%. L'entreprise a constaté une croissance stable dans les Systèmes d'Entrée mais des déclins dans d'autres régions. Trois acquisitions ont contribué à la performance positive des ventes.
Der Q1 2024 Bericht von Assa Abloy zeigt einen Anstieg der Nettoumsätze um 9% auf 35.200 Mio. SEK, angetrieben durch starke Ausführung trotz eines herausfordernden Marktes. Das organische Wachstum lag bei -2%, während das Wachstum durch Akquisitionen 11% betrug. Das Unternehmen verzeichnete stabiles Wachstum im Bereich Eingangssysteme, jedoch Rückgänge in anderen Regionen. Drei Akquisitionen trugen zur positiven Verkaufsleistung bei.
Positive
  • 9% increase in net sales to SEK 35,200 M in Q1 2024
  • Organic growth of -2% and acquired net growth of 11%
  • Stable growth in Entrance Systems but declines in Americas, Asia Pacific, EMEIA, and Global Technologies
  • Three acquisitions with combined annual sales
Negative
  • None.

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.

The operating profit excluding items affecting comparability increased by 5% to SEK 5,427 M, and the operating margin was record-high for the quarter at 16.3%, excluding the HHI transaction. Strong operational execution through implementation of more cost actions, continued strong price realization and lower direct material costs contributed to the strong performance. The operating cash flow was seasonally lower at SEK 3,096 M with a cash conversion of 67%.

Security is a strong underlying driver for long-term growth
The demand for safe and secure access solutions is constantly increasing as a result of rising security threats, public safety concerns, regulatory requirements and a changing work environment. This also accelerates the demand for electromechanical products and solutions. They offer a high level of security thanks to advanced authentication methods, our unique encryption technologies, the enablement of remote monitoring & control as well as by providing audit trails and access logs. Electromechanical solutions also offer opportunities for efficiency gains and a higher level of convenience and flexibility for our customers. With prevailing penetration rates still low, the shift to more electromechanical solutions continues to be a long-term driver of profitable growth. During the quarter, our electromechanical organic sales growth was 6% in the regional divisions.

We acquired three companies in the first quarter, representing annualized sales of SEK 2 billion. The integration of HHI continues to proceed according to plan and we are gradually realizing more synergies. Given a robust target pipeline and a solid financial position with a strong balance sheet and cash flow, we are well positioned to continue our successful journey of acquiring companies.

We are committed to delivering value to our customers and shareholders and are confident that we will be able to adapt to and perform in any market condition.

Thank you for your continued support and trust in ASSA ABLOY.

Stockholm, April 24, 2024

Nico Delvaux
President and CEO

Further information can be obtained from:
Nico Delvaux,
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 

ASSA ABLOY is holding a telephone and web conference at 09.30 on April 24, 2024 which can be followed online at assaabloy.com/investors.

It is possible to submit questions by telephone on: 08–505 100 31, +44 207 107 0613 or +1 631 570 5613

This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on April 24, 2024.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/assa-abloy/r/quarterly-report-q1-2024,c3966493

The following files are available for download:

https://mb.cision.com/Main/7333/3966493/2753851.pdf

The full report (PDF)

https://news.cision.com/assa-abloy/i/assa-abloy-logo-door,c3292705

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SOURCE ASSA ABLOY

FAQ

What was Assa Abloy's net sales increase in Q1 2024?

Assa Abloy's net sales increased by 9% to SEK 35,200 M in Q1 2024.

What was the organic growth rate in Q1 2024 for Assa Abloy?

Assa Abloy experienced -2% organic growth in Q1 2024.

Which regions saw stable growth in Q1 2024 for Assa Abloy?

Entrance Systems showed stable growth, but Americas, Asia Pacific, EMEIA, and Global Technologies experienced declines in Q1 2024.

How many acquisitions contributed to Assa Abloy's positive sales performance in Q1 2024?

Three acquisitions with combined annual sales contributed to Assa Abloy's positive sales performance in Q1 2024.

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