Interim Report Q3/9M 2023
Magnus Ahlqvist, President and CEO Andreas Lindback, CFO
Securitas | 2 |
Interim Report January-September 2023 |
Robust margin improvements driven by
technology and solutions
- Organic sales growth of 8 percent (7) in the third quarter
- Primary driver of organic sales growth was price increases
- Technology and solutions had 7 percent real sales growth, including STANLEY Security for the comparable period
- Operating margin reached 6.9 percent (6.5) in the third quarter, with all three business segments contributing
- Price and wage balance in the Group on par in the first nine months
- Operating cash flow was 84 percent (122) in the third quarter. Net debt to EBITDA before IAC ratio 3.1 (3.6)*
- Integration processes and cost synergies with STANLEY Security are progressing well. The vast majority of MUSD 50 cost synergies realized
- Positive margin effect in Ibero-America following the divestment of Securitas Argentina in July
*
Securitas | 3 |
Interim Report January-September 2023 |
Strong operating margin development in technology and solutions,
representing 53 percent of Group's operating result in Q3
Sales | Real sales | EBITA** | EBITA | |
MSEK | growth, % | MSEK | margin, % | |
Business line | Q3 2023 | Q3 2023 | Q3 2023 | Q3 2023 |
Security services | 26 508 | 7 | 1 419 | 5.4 |
Technology and solutions | 12 782 | 14* | 1 465 | 11.5 |
Risk management services and | ||||
costs for Group functions | 757 | - | -120 | - |
% of | % of |
Group | Group |
sales | EBITA** |
Q3 2023 | Q3 2023 |
66 | 51 |
32 | 53 |
2 | -4 |
Group | 40 047 | 8 | 2 764 | 6.9 | 100 | 100 | |
*Real sales growth including STANLEY Security for the comparable period (consolidated as of July 22, 2022) was 7% in the third quarter **EBITA = operating income before amortization
Securitas | 4 |
Interim Report January-September 2023 |
Securitas North America
Good commercial activity and price increases behind organic sales growth improvement
Organic sales growth
9% | |||||||||
7% | |||||||||
5% | |||||||||
3% | |||||||||
1% | |||||||||
-1% | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 | 2022 | 2023 | |||||||
-3% | |||||||||
-5% | |||||||||
Organic sales growth 5% (4) in Q3, 7% (-1) in 9M
- Driven by price increases, solid portfolio new sales and a significant client contract renewed and extended, as previously communicated
- The Technology business unit also supported with improved installation sales and a continued healthy backlog
- Technology and solutions sales represented 36 percent (35) of total sales in Q3
- Client retention rate 87 percent (85)
Securitas | 5 |
Interim Report January-September 2023 |
Securitas North America
Margin uplift due to good business momentum and cost synergies
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Operating margin
Q1 | Q2 | Q3 |
2021 2022 2023
Operating margin 9.2% (8.7) in Q3, 8.9 % (8.0) in 9M
- The development was driven by the Technology business unit
- The Guarding business unit was stable, supported by active portfolio management and leverage from strong topline growth, but hampered by cost of risk and medical expenses
Securitas | 6 |
Interim Report January-September 2023 |
Securitas Europe
Strong organic sales growth mainly driven by price increases
Organic sales growth | Organic sales growth 13% (7) |
in Q3, 13% (8) in 9M |
14%
12%
10%
8%
6%
4%
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 | 2022 | 2023 |
- Strong price increases supported organic sales growth including impacts from the hyperinflationary environ- ment in Türkiye
- Also supported by technology and solutions as well as the airport security business
- Technology and solutions sales represented 32 percent (31) of total sales in Q3
- Client retention rate 91 percent (91)
Securitas | 7 |
Interim Report January-September 2023 |
Securitas Europe
Operating margin improvement driven by technology and solutions
Operating margin
8%
7%
6%
5%
4%
3%
2%
1%
0%
Q1 | Q2 | Q3 |
2021 2022 2023
Operating margin 7.0% (6.6) in Q3, 6.0 % (5.7) in 9M
- The improvement was driven mainly from technology and solutions, active portfolio management and reduced sickness
- Hampered by increased costs related to labor shortage, such as sub- contracting
Securitas | 8 |
Interim Report January-September 2023 |
Securitas Ibero-America
A decline in organic sales growth followed
the divestment of Securitas Argentina
Organic sales growth 5% (16) | |
Organic sales growth | in Q3, 18% (15) in 9M |
28%
24%
20%
16%
12%
8%
4%
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 | 2022 | 2023 |
- Organic sales growth declined due to the divestiture of Securitas Argentina
- Organic sales growth in Spain was 3 percent (6), supported by price increases and improved installation sales but hampered by active portfolio management
- Technology and solutions sales represented 34 percent (29) of total sales in Q3
- Client retention rate 92 percent (92)
Securitas | 9 |
Interim Report January-September 2023 |
Securitas Ibero-America
Exit Argentina - the main driver of the improved
operating margin
8%
7%
6%
5%
4%
3%
2%
1%
0%
Operating margin | Operating margin 7.0% (6.1) | |||||||
in Q3, 6.2% (5.9) in 9M | ||||||||
- The margin uplift was driven | ||||||||
by the divestment of | ||||||||
Securitas Argentina | ||||||||
- Improved margins in | ||||||||
technology and solutions and | ||||||||
in airport security supported, | ||||||||
as well as good portfolio | ||||||||
management | ||||||||
- The operating margin in | ||||||||
Spain and Portugal improved | ||||||||
compared to last year, | ||||||||
although continued wage | ||||||||
Q1 | Q2 | Q3 | pressure in Spain hampered | |||||
2021 | 2022 | 2023 | ||||||
Securitas | 10 |
Financials
Andreas Lindback
CFO
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Securitas AB published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 16:50:08 UTC.