ASSA ABLOY: Quarterly Report Q1 2022
ASSA ABLOY reported a strong start to 2022, with net sales increasing by 22% to SEK 26,591 M, driven by 14% organic growth. Operating income rose 26% to SEK 4,001 M, with an operating margin of 15.0%. Earnings per share increased by 27% to SEK 2.57. Despite operational challenges, the company signed three acquisitions with combined annual sales of SEK 250 M. Organic sales growth was particularly strong in the Americas, while Asia Pacific saw a decline. The company remains optimistic about long-term growth opportunities, particularly in mobile access solutions.
- Net sales increased by 22% to SEK 26,591 M.
- Organic growth stood at 14%.
- Operating income rose 26% to SEK 4,001 M.
- Earnings per share increased by 27% to SEK 2.57.
- Three acquisitions signed with combined annual sales of SEK 250 M.
- Strong organic sales growth in Americas and Entrance Systems, at 22% and 20%, respectively.
- Organic sales declined by 2% in Asia Pacific.
- Operating cash flow decreased significantly by 65% to SEK 912 M.
STOCKHOLM, April 27, 2022 /PRNewswire/ -- A strong start to the year
First quarter
- Net sales increased by
22% to SEK 26,591 M (21,805), with organic growth of14% (4) and acquired net growth of0% (4) - Very strong organic sales growth in Americas, Entrance Systems and Global Technologies and strong growth in EMEIA, while organic sales declined in Asia Pacific
- Three acquisitions with combined annual sales of about SEK 250 M were signed in the quarter
- Operating income (EBIT) was SEK 4,001 M (3,187), corresponding to an operating margin of
15.0% (14.6) - Net income amounted to SEK 2,859 M (2,253)
- Earnings per share increased to SEK 2.57 (2.03)
- Operating cash flow amounted to SEK 912 M (2,636).
Sales and income
Full year | First quarter | |||||||
2020 | 2021 | Δ | 2021 | 2022 | Δ | |||
Sales, SEK M | 87,649 | 95,007 | 21,805 | 26,591 | ||||
Of which: | ||||||||
Organic growth | –7,150 | 8,900 | 827 | 3,287 | ||||
Acquisitions and divestments | 3,328 | 1,975 | 866 | –52 | ||||
Exchange-rate effects | –2,558 | –3,517 | - | –2,060 | 1,551 | |||
Operating income (EBIT)[1], SEK M | 11,916 | 14,181 | 3,187 | 4,001 | ||||
Operating margin (EBITA)[1], % | ||||||||
Operating margin (EBIT)[1], % | ||||||||
Income before tax[1, SEK M | 11,133 | 13,538 | 3,045 | 3,811 | ||||
Net income[1], SEK M | 8,375 | 10,901 | 2,253 | 2,859 | ||||
Operating cash flow, SEK M | 14,560 | 13,265 | – | 2,636 | 912 | – | ||
Earnings per share[1], SEK | 7.54 | 9.81 | 2.03 | 2.57 |
[1] Excluding costs before income tax for restructuring programs in the fourth quarter 2020, totaling SEK –1,366 M.
The corresponding costs after tax was SEK –1,112 M. Excluding non-cash operating income in third quarter 2020 from revaluation at fair value of
Comments by the President and CEO
A strong start to the year
We had a good start to 2022, with very strong organic sales growth and margin improvement. This was driven by robust demand and price adjustments. During the quarter we have addressed multiple operational challenges – these include higher material costs; supply-chain issues including semiconductor shortages; very high sick leave due to Omicron; and record high energy costs - but thanks to excellent operational execution we can report a solid improvement of the operating margin.
Our organic sales grew by
Operating income increased by
Long-term growth drivers remain solid
While macro-economic and geopolitical uncertainties have increased, our business benefits from many long-term growth drivers. The basic need for safety and security is a fundamental driver. This is further supported by the increasing demand for flexible and convenient access solutions enabled by new technologies, urbanization and increased focus on sustainability. Specifically, the transition to electromechanical and mobile access solutions provides many opportunities. In the last few years, we have launched numerous partnerships with leading technology companies. One example is our collaboration with Apple, which was extended with the launch of employee badge in Apple Wallet at Silverstein Properties' high-profile 7 World Trade Center property in New York City during the first quarter. These partnerships will further accelerate our mobile credential business.
During the quarter, we signed three acquisitions and the activity level remains high.
It was with great sadness that we witnessed Russia's invasion of Ukraine and the humanitarian crisis that has followed. Our thoughts are with all the people who are affected by this conflict. Although our direct exposure to Russia and Ukraine is limited, it has indirect business effects. Nevertheless, with many positive long-term growth drivers and after a strong start to the year, we are confident that the Group is in a good position to continue its positive journey.
Stockholm, 27 April 2022
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
ASSA ABLOY is holding a telephone and web conference at 09.30 on 27 April 2022 which can be followed online at www.assaabloy.com.
It is possible to submit questions by telephone on: 08–505 583 59, +44 333 300 9265 or +1 631 913 1422
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 27 April 2022.
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SOURCE ASSA ABLOY
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