Significant sales growth and margin recovery
Second quarter
- Net sales increased by 19% to
SEK 23,648 M (19,953), with strong organic growth of 23% (-18) and acquired net growth of 5% (3). Currency effects amounted to -9% (0) -
Very strong organic sales growth was reported by EMEIA,
Americas , Entrance Systems and Global Technologies. The organic sales growth forAsia Pacific was stable -
Four acquisitions with combined annual sales of about
SEK 400 M were signed -
Operating income (EBIT) increased by 71% and amounted to
SEK 3,589 M (2,097), corresponding to an operating margin of 15.2% (10.5) -
Net income amounted to
SEK 3,212 M (1,400) -
Earnings per share amounted to
SEK 2.89 (1.26) -
Operating cash flow increased by 6% to
SEK 3,627 M (3,418).
Sales and income
Second quarter | First half-year | |||||||
2020 | 2021 | Δ | 2020 | 2021 | Δ | |||
Sales, SEK M | 19,953 | 23,648 | 19% | 42,126 | 45,454 | 8% | ||
Of which: | ||||||||
Organic growth | -4,198 | 4,258 | 23% | -4,957 | 5,085 | 13% | ||
Acquisitions and divestments | 654 | 856 | 5% | 1,302 | 1,721 | 4% | ||
Exchange-rate effects | -48 | -1,418 | -9% | 733 | -3,478 | -9% | ||
Operating income (EBIT), SEK M | 2,097 | 3,589 | 71% | 4,848 | 6,776 | 40% | ||
Operating margin (EBITA), % | 11.2% | 15.8% | 12.2% | 15.6% | ||||
Operating margin (EBIT), % | 10.5% | 15.2% | 11.5% | 14.9% | ||||
Income before tax, SEK M | 1,892 | 3,441 | 82% | 4,411 | 6,486 | 47% | ||
Net income, SEK M | 1,400 | 3,212 | 129% | 3,264 | 5,465 | 67% | ||
Operating cash flow, SEK M | 3,418 | 3,627 | 6% | 4,624 | 6,262 | 35% | ||
Earnings per share, SEK | 1.26 | 2.89 | 130% | 2.94 | 4.92 | 68% |
Comments by the President and CEO
Significant sales growth and margin recovery
During the last few months, we have seen positive signs that more markets are opening up again in parallel with the vaccine roll-out. This has resulted in increased mobility and activity level in most of our core markets. In combination with the sharp drop in activity level last year, this has led to a record organic sales growth of 23% in the second quarter. EMEIA, which was most affected by the lockdowns last year, reports an organic sales growth of 39% with all regions growing strongly.
Operating income increased by 71% to
Accelerating growth
Demand in many markets has gradually improved and sales, adjusted for currency, are now back to or above pre-Covid levels in EMEIA,
Our acquisition strategy will also continue to boost our topline and we signed four acquisitions in the quarter. Two of these, Sure-Lock in the
Since raw material costs have continued to increase during the second quarter we have continued to implement numerous price increases that largely offset the cost impact. During the quarter we have also worked hard to address the shortage of some components. Thanks to excellent operational execution, we were able to manage the different component shortages and logistical constraints in an efficient way, while maintaining our customer service at a high level.
As we look forward, we expect mobility to increase and demand in many markets and segments to normalize, apart from the travel-related verticals where restrictions are still delaying our recovery. I now look forward to working together with my colleagues on our long-term growth plans to accelerate our profitable growth.
President and CEO
Further information can be obtained from:
President and CEO, tel. no: +46 8 506 485 82
Erik Pieder,
Executive Vice President and CFO, tel.no: +46 8 506 485 72
at 09.30 on
which can be followed on the Internet at www.assaabloy.com.
It is possible to submit questions by telephone on:
+46 8 566 427 05, +44 333 300 9269 or +1 646 722 4903
This is information that
https://news.cision.com/assa-abloy/r/quarterly-report-q2-2021,c3386722
https://mb.cision.com/Main/7333/3386722/1446238.pdf
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