Securitas announces trading update for the period July 1-August 31, 2022
Securitas announced its trading update for the period July 1 - August 31, 2022, reporting total sales of MSEK 22,233, up from MSEK 17,593 in 2021. Organic sales growth stood at 6%. Notably, technology and solutions sales increased to MSEK 6,595, accounting for 30% of total sales. Operating income before amortization reached MSEK 1,437, a 27% increase, resulting in an operating margin of 6.5% compared to 5.9% in the previous year. The acquisition of STANLEY Security positively impacted sales and margins.
- Total sales increased to MSEK 22,233 from MSEK 17,593.
- Organic sales growth of 6% was achieved.
- Technology and solutions sales rose to MSEK 6,595, accounting for 30% of total sales.
- Operating income before amortization improved to MSEK 1,437 from MSEK 1,036, adjusted for exchange rates, a 27% real change.
- Operating margin increased to 6.5% from 5.9%.
- None.
STOCKHOLM, Sept. 21, 2022 /PRNewswire/ -- This trading update covers the period July 1-August 31, 2022, with comparatives for the corresponding period of 2021 where applicable. STANLEY Security was consolidated as of July 22, 2022, and is consequently not included in the comparative amounts[1].
- Total sales amounted to MSEK 22 233 (17 593)
- Organic sales growth amounted to 6 percent
- Technology and solutions sales amounted to MSEK 6 595 (3 911) or 30 percent (22) of total sales during the period
- Operating income before amortization amounted to MSEK 1 437 (1 036), which, adjusted for changes in exchange rates, represented a real change of 27 percent
- Operating margin amounted to 6.5 percent (5.9)
SALES DEVELOPMENT JULY 1 - AUGUST 31, 2022
Sales amounted to MSEK 22 233 (17 593). The good business momentum continued in the period with organic sales growth of 6 percent, with Security Services North America returning to positive organic sales growth and supported by Security Services Ibero-America and Security Services Europe. For STANLEY Security, the commercial activity was good with estimated mid-single digit organic sales growth in the period.[2]
Technology and solutions sales amounted to MSEK 6 595 (3 911) or 30 percent (22) of total sales in the period.
OPERATING INCOME BEFORE AMORTIZATION AND OPERATING MARGIN
JULY 1 - AUGUST 31, 2022
Operating income before amortization was MSEK 1 437 (1 036) which, adjusted for changes in exchange rates, represented a real change of 27 percent. The Group's operating margin was 6.5 percent (5.9). The business segments Security Services North America and Security Services Ibero-America continued to deliver strong margin improvement. In Security Services North America this development was further positively impacted by the acquired STANLEY Security business. The operating margin in Security Services Europe also improved, mainly due to the acquired STANLEY Security business while the remainder of the business in Security Services Europe was in line with previous year.
The operating margin in the acquired STANLEY Security business contributed significantly to the Group's operating margin. Compared to the first half year of 2022[3] the operating margin in the acquired STANLEY Security business improved substantially as a result of pricing recovery, cost control and leverage, and initial execution on the value creation plan.
Securitas is preparing a supplement to the prospectus by reason of this trading update, which is intended to be published on or around September 23, 2022.
Further information:
Investors: Micaela Sjökvist, VP Investor Relations; +46 76 116 7443, micaela.sjokvist@securitas.com
This is information that Securitas 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 person set out above, at 7.30 p.m. (CEST) on September 21, 2022.
[1] See Note 3 in Securitas' Annual and Sustainability Report 2021 for definitions and further information on key ratios not defined in IFRS (Alternative Performance Measures).
[2] STANLEY Security's sales are excluded from the calculation of Securitas' consolidated organic sales growth during a period of 12 months from the acquisition date as per Securitas' definition of organic sales growth. The estimate of STANLEY Security's organic sales growth disclosed here is based on data that is not necessarily compiled on the same basis as Securitas' calculation and is also based on comparatives that are not included in Securitas.
[3] The comparison period is based on data from STANLEY Security for the period January 1 – June 30 2022, before the consolidation into Securitas on July 22, 2022.
Securitas is a leading intelligent security solutions partner. Our guarding, electronic security, fire and safety, and risk management solutions enable more than 150,000 clients to see a different world. We are present in 47 markets and our innovative, data-driven approach makes us a trusted partner to many of the world's best-known companies. Our 345,000 employees live our values of integrity, vigilance and helpfulness, and our purpose is to help make your world a safer place.
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SOURCE Securitas
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