Loomis publishes full-year report for January - December 2020 and removes the operating margin target for 2021

Rhea-AI Summary

Loomis reported its fourth quarter 2020 revenue at SEK 4,537 million, down 7% from the previous year, with organic growth at -9%. Operating income fell to SEK 467 million with a margin of 10.3%. Full-year revenue was SEK 18,813 million, down 8%, and operating income decreased to SEK 1,775 million. The company noted significant impacts from the coronavirus pandemic on its financial performance, leading to the removal of the 2021 operating margin target. A proposed dividend of SEK 6.00 per share was announced.

Positive

• Cash flow from operating activities reached SEK 2,218 million, equivalent to 129% of operating income.

Negative

• Fourth quarter revenue decreased by 7% year-over-year.
• Operating income dropped to SEK 467 million, down from SEK 693 million.
• Full-year revenue declined by 8% to SEK 18,813 million.
• Operating margin decreased to 9.4% from 12.4%.
• Removal of the 12-14% operating margin target for 2021 due to ongoing pandemic impacts.

SOLNA, Sweden, Feb. 3, 2021 /PRNewswire/ --

Fourth quarter 2020

Revenue for the fourth quarter amounted to SEK 4,537 million (5,342). Real growth was -7 percent (5), of which organic growth was -9 percent (1).

Loomis operating income (EBITA)¹⁾ amounted to SEK 467 million (693) and the operating margin was 10.3 percent (13.0). Excluding Loomis Pay, the operating margin was 11.0 percent (13.0).

Income before taxes amounted to SEK 203 million (552) and income after taxes was SEK 103 million (407).

Earnings per share before and after dilution amounted to SEK 1.37 (5.42).

Cash flow from operating activities²⁾ amounted to SEK 362 million (325), equivalent to 80 percent (48) of operating income (EBITA).

The ongoing coronavirus pandemic had an overall negative impact on revenue and operating income during the quarter. The significant differences compared to the fourth quarter of 2019 are related to the pandemic.

Due to the coronavirus pandemic, several restructuring programs are ongoing in Europe to improve efficiency and the operating margin.

A dividend of SEK 5.50 per share (10.00) for 2019 was paid out in the fourth quarter.

Successful launch of Loomis Pay, the new platform for digital and cash payments.

Full-year 2020

Revenue for the period amounted to SEK 18,813 million (21,044). Real growth was -8 percent (5), of which organic growth was -9 percent (2).

Loomis operating income (EBITA)¹⁾ amounted to SEK 1,775 million (2,601) and the operating margin was 9.4 percent (12.4). Excluding Loomis Pay, the operating margin was 9.8 percent (12.4).

Income before taxes amounted to SEK 1,096 million (2,210) and income after taxes was
SEK 716 million (1,646).

Earnings per share before and after dilution amounted to SEK 9,52 (21,88).

Cash flow from operating activities²⁾ amounted to SEK 2,218 million (2,057), equivalent to 129 percent (81) of operating income (EBITA).

Overall, the ongoing coronavirus pandemic had a significant negative impact on revenue and operating income for the year.

In light of the continuing corona pandemic that has delayed the recovery in retail and the hospitality industry, especially in Europe, Loomis' assessment is that the previously communicated operating margin target, of 12 - 14 percent for 2021, will likely not be achieved. As the market conditions for 2021 are still uncertain, due to the pandemic, Loomis has decided to remove the operating margin target.

The Board of Directors proposes a dividend of SEK 6.00 per share for 2020 (5.50).

¹⁾ Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.

²⁾ The key financial number and the ratio are reported exclusive of impact from IFRS 16.

CONTACT:

Anders Haker
Chief Investor Relations Officer

Mobile: +1 281 795 8580
E-mail: anders.haker@loomis.com

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

https://news.cision.com/loomis-ab/r/loomis-publishes-full-year-report-for-january---december-2020-and-removes-the-operating-margin-targe,c3278457

The following files are available for download:

https://mb.cision.com/Main/51/3278457/1367164.pdf	Loomis publishes full-year report for January â€" December 2020 and removes the operating margin target for 2021
https://mb.cision.com/Public/51/3278457/bd608f96a8379828.pdf	Loomis full-year report January-December 2020 - press release

 

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SOURCE Loomis AB

FAQ

What are Loomis' revenue figures for the fourth quarter of 2020?

Loomis reported fourth quarter 2020 revenue of SEK 4,537 million, a decrease of 7% compared to the previous year.

How did the coronavirus pandemic impact Loomis' financial performance?

The coronavirus pandemic had a significant negative impact on Loomis' revenue and operating income for both the fourth quarter and full year 2020.

What was Loomis' operating income for full-year 2020?

For the full year 2020, Loomis reported an operating income of SEK 1,775 million, down from SEK 2,601 million in 2019.

Has Loomis proposed a dividend for 2020?

Yes, Loomis proposed a dividend of SEK 6.00 per share for the year 2020.

What is Loomis' outlook for 2021 regarding operating margins?

Loomis has removed its operating margin target of 12-14% for 2021 due to uncertain market conditions caused by the pandemic.