Loomis announces new targets and presents strategy for 2022 - 2024
Loomis announced its updated strategy, "At the Centre of the Payment Ecosystem," during the Capital Markets Day on March 23, 2022. The strategy aims for a revenue growth of 5-8% annually and an operating margin of 12-14% by 2024. Key focus areas include accelerating core business, increasing recurring revenue services, and expanding digital offerings. The company maintains its dividend policy, distributing 40-60% of annual net earnings to shareholders. Sustainability goals include reducing carbon emissions and work injury rates by 15% by 2024.
- Targets 5-8% average annual revenue growth.
- Operating margin goal set at 12-14% for 2024.
- Continued focus on recurring revenue services and digital expansion.
- Unchanged dividend policy at 40-60% of net earnings.
- None.
SOLNA, Sweden, March 23, 2022 /PRNewswire/ -- At the Capital Markets Day, which is held in a digital format today, Loomis announces new targets and presents an updated strategy under the heading "At the Centre of the Payment Ecosystem".
The strategy means that Loomis will move further up the value chain by: 1) accelerating the core business, 2) increased focus on services with recurring revenue, 3) combining physical and digital customer offerings, 4) being the leading player in the market within ESG and 5) continuing to develop the Loomis model.
Loomis' dividend policy, stating that 40 – 60 percent of annual net earnings should be distributed to the shareholders, is unchanged.
The targets in brief for the strategy period
Financial targets
- Revenue: Average real growth of 5-8 percent per year
- Operating margin (EBITA): 12-14 percent for 2024
Sustainability targets
- Reduced carbon dioxide emissions by 15 percent compared to 2019. Refers to scope 1 & 2 combined
- Reduction of the work injury rate by 15 percent compared to 2021
Revenue
No specific revenue targets are set for the various business lines, and previously communicated ambitions regarding ATMs, physical foreign exchange (FX) and Loomis Pay should be seen as an integral part of the real growth of 5-8 percent per year. Loomis prioritizes growth in four areas where the potential is high:
- services with recurring revenue. This primarily applies to SafePoint, both in the USA and in Europe, as well as expanded service offerings for ATMs. The work regarding ATMs is conducted through separate centers of excellence in Europe and in the USA
- continued expansion of Loomis Pay in existing markets. Loomis Pay will be rolled out in at least one market in continental Europe in 2022
- continued acquisitions within the core business in existing markets and acquisitions of relevant technology that support Loomis' service offerings
- continued efforts to drive outsourcing of cash management services (CMS) in all markets
Operating margin
Loomis' margin expansion is based on:
- faster rate of increase in revenue from services with higher operating margin, such as SafePoint and ATMs, but CMS and FX will also contribute
- lower cost base in Europe and in the US through the measures implemented following the pandemic in 2020 and 2021
- continued efficiency work at Loomis' more than 400 branches
- continued development of pricing models
Reduced carbon dioxide emissions by 15 percent compared to 2019 for scope 1 & 2
Carbon dioxide emissions are reduced by:
- increasing the proportion of vehicles powered by electricity
- increased investments in technical tools that contribute to more environmentally friendly diving behavior
- increased proportion of fossil-free fuel
- a gradual transition to lighter vehicles
Reduction of the work injury rate by 15 percent compared to 2021
The number of lost working days is reduced by:
- education
- investments in technical tools that contribute to a safer work environment
"Loomis has a strong position in the international market and we will further strengthen it. We are at the forefront of technical development. Our customers to a large extent demand even more advanced technical solutions and this opens up good opportunities for our advanced and environmentally friendly services such as SafePoint and Loomis Pay", says Loomis' President and CEO Patrik Andersson.
This press release is also available on the company's website, www.loomis.com.
March 23, 2022
CONTACT:
Patrik Andersson
President and CEO
Mobile: +46 76 111 34 00
Email: patrik.andersson@loomis.com
Kristian Ackeby
Chief Financial Officer
Mobile: +46 70 569 69 98
Email: kristian.ackeby@loomis.com
Anders Haker
Chief Investor Relations Officer
Mobile: +1 281 795 8580
Email: anders.haker@loomis.com
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SOURCE Loomis AB
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