July-September 2024
- Total sales MSEK 40 229 (40 047)
- Organic sales growth 5 percent (8)
- Real sales growth within technology and solutions 6 percent (14)
- Operating income before amortization MSEK 3 006 (2 764)
- Operating margin 7.5 percent (6.9)
- Earnings per share, SEK 2.03 (-3.58)
- Earnings per share before IAC, SEK 3.05 (2.66)
- Cash flow from operating activities 115 percent (84)
January-September 2024
- Total sales MSEK 120 127 (117 707)
- Organic sales growth 5 percent (10)
- Real sales growth within technology and solutions 7 percent (48)
- Operating income before amortization MSEK 8 164 (7 564)
- Operating margin 6.8 percent (6.4)
- Earnings per share, SEK 6.15 (0.13)
- Earnings per share before IAC, SEK 7.76 (7.15)
- Net debt/EBITDA ratio 2.7 (3.1)
- Cash flow from operating activities 58 percent (49)
Comments from the President and CEO
"A strong quarter"
We delivered a record-high operating margin of 7.5 percent (6.9) in the third quarter, with improved performance in Europe driven by security services. Operating margin improvement in our security services business is an important component for reaching our strategic and financial targets. The development in the third quarter confirms that we are on the right track.
Organic sales growth was 5 percent. Real sales growth in our technology and solutions business was 6 percent, supporting the mix change into higher margin business.
The operating cash flow in the third quarter at 115 percent (84) contributed to reduced leverage and a strengthened balance sheet.
SHAPING SECURITAS FOR LONG-TERM SUSTAINABLE SHAREHOLDER VALUE
We are shaping Securitas for long-term sustainable shareholder value. We have a resilient business model where we drive operational value creation through growth in technology and solutions, enhanced portfolio profitability in security services, cost efficiency and digital innovation.
Continued focus on active portfolio management and new sales at improved margins resulted in strong profitability development in our security services business. High seasonal travelling along with improved operational efficiency in our airport security business also supported the operating margin.
We delivered healthy growth in our technology and solutions business in the third quarter. As we are finalizing the integration of STANLEY Security we are increasing focus on our commercial activities. During the quarter we expanded our technology offering to several of our existing global clients, yet another confirmation of our strengthened global market position and unique client offering. We are well positioned for growth going forward.
As we are creating the new Securitas we continue to create scale and efficiency opportunities and our focus on cost efficiency measures remains high across the organization. We also continue to assess our business mix and presence to sharpen our performance and long-term competitive position further.
UNIQUE VALUE PROPOSITION PARTNERING WITH OUR CLIENTS
We are driving a client-centric transformation of Securitas to provide the most compelling value proposition in the security industry. With elevated global uncertainty and an increased threat environment, clients are looking for a future-oriented partner with deep security expertise who can support in shaping their security programs for the years to come. Our long-term partnership approach, combined with our global presence, technology and digital capabilities are important differentiators that make us the partner of choice for our clients.
We remain committed to achieve the target of 8 percent operating margin by the end of 2025, and the strong performance in the quarter is another important step in the right direction.
Magnus Ahlqvist
President and CEO
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on November 6, 2024, at 9.30 p.m. (CET) where President and CEO Magnus Ahlqvist and CFO Andreas Lindback will present the report and answer questions. The telephone conference will also be audio cast live via Securitas' website www.securitas.com
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/en/investors/financial-reports-and-presentations/
A recorded version of the audio cast will be available at www.securitas.com/en/investors/financial-reports-and-presentations/
after the telephone conference.
For further information, please contact:
Micaela Sjökvist, Vice President, Investor Relations +?46 76 116 7443
ABOUT SECURITAS
Securitas is a world-leading safety and security solutions partner that helps make your world a safer place. Nine decades of deep experience means we see what others miss. By leveraging technology in partnership with our clients, combined with an innovative, holistic approach, we're transforming the security industry. With approximately 341 000 employees in 44 markets, we see a different world and create sustainable value for our clients by protecting what matters most - their people and assets.
Group financial targets
Securitas has four financial targets:
- 8-10 percent technology and solutions annual average real sales growth
- 8 percent Group operating margin by year-end 2025, with a >10 percent long-term operating margin ambit-ion
- A net debt to EBITDA ratio below 3.0x
- An operating cash flow of 70-80 percent of operating income before amortization
Securitas AB (publ.)
P.?O. Box 12307, SE-102 28 Stockholm, Sweden
Visiting address:
Lindhagensplan 70
Telephone: +?46 10 470 30 00
Corporate registration number: 556302-7241
www.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 8.00 a.m. (CET) on Wednesday, November 6, 2024.
