Record quarter with improved operating margin
Loomis delivered solid financial results for the second quarter. Revenue exceeded SEK 7.6 billion, which is a new record for us. This positive performance was driven by organic growth across most business lines, except for international where we are still experiencing cyclical headwinds. Notably, our automated solutions experienced double-digit organic growth in both regions. The acquisition of CIMA also contributed positively to the results.
The operating income (EBITA) of SEK 887 million is our highest ever and we increased our operating margin to 11.6 percent (10.6). Operating cash flow surpassed SEK 1.1 billion for the quarter, representing a strong 126 percent conversion rate relative to operating income (EBITA).
Comments on Quarter 2
- Revenue for the second quarter was SEK 7,639 million (7,072). Revenue grew by 8.0 percent (13.8) of which organic growth was 7.0 percent (7.7) and acquisitions contributed with 3.0 percent (0.6). Exchange rate effects on revenue was -1.9 percent (5.4).
- Operating income (EBITA) 1) for the quarter was SEK 887 million (752). The operating margin (EBITA) was 11.6 percent (10.6).
- Items affecting comparability in the quarter amounted to SEK -97 million (-13) and relates to costs for further restructuring within Segment Europe and Latin America and the provision for the administrative fine from the Swedish Financial Supervisory Authority that was communicated in June.
- Operating income (EBIT) before items affecting comparability for the quarter was SEK 834 million (709) and operating margin (EBIT) before items affecting comparability was 10.9 percent (10.0).
- Net financial expenses for the quarter were SEK -186 million (-144).
- Income before taxes for the quarter was SEK 550 million (552) and net income was SEK 396 million (357).
- Earnings per share before dilution for the quarter were SEK 5.65 (5.02) and after dilution were 5.64 (5.01).
- Cash flow from operating activities2) amounted to SEK 1,113 million (310) in the quarter, equivalent to 126 percent (41) of operating income (EBITA). The cash flow was partially positively impacted by a reversal of the temporary build-up of foreign currency stock over the quarter end in Q1.
- Loomis AB has cancelled 4,279,829 treasury shares and repurchased 758,908 shares during the second quarter. The Board of Directors has resolved to continue to repurchase own shares during the third quarter 2024.
1)Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and items affecting comparability.
2) Cash flow from operating activities is exclusive of impact from IFRS 16.
This press release is also available on the company's website, www.loomis.com.
For more information, please contact:
Jenny Boström
Head of Sustainability and IR
jenny.bostrom@loomis.com
+46 79 006 45 92
Loomis offers secure and effective comprehensive solutions for managing payments, including the distribution, handling, storage and recycling of cash and other valuables. Loomis' customers are mainly financial institutions and retailers. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employs around 25,000 people and had revenue in 2023 of more than SEK 28 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.
This information is information that Loomis AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 a.m. CEST on July 24, 2024.
