2024-04-24 18:54:07 ET
ASSA ABLOY AB (publ) (ASAZF)
Q1 2024 Results Conference Call
April 24, 2024 03:30 PM ET
Company Participants
Björn Tibell - Head of Investor Relations
Nico Delvaux - President and Chief Executive Officer
Erik Pieder - Chief Financial Officer
Conference Call Participants
Vivek Midha - Citi
Gael de-Bray - Deutsche Bank
Daniela Costa - Goldman Sachs
Alexander Virgo - Bank of America
Johan Sjöberg - Kepler Cheuvreux
Gustaf Schwerin - Handelsbanken
Rizk Maidi - Jefferies
Andy Wilson - JPMorgan
Presentation
Björn Tibell
Hi, everyone, and welcome to the presentation of ASSA ABLOY's Q1 report in 2024. My name is Björn Tibell, I'm heading Investor Relations. And joining me here in the studio are
ASSA ABLOY's CEO, Nico Delvaux.
Nico Delvaux
Thank you.
Björn Tibell
And our CFO, Erik Pieder.
Erik Pieder
Good morning.
Björn Tibell
Good morning. We will start today's conference, as usual, with a presentation of the report before we open up for your questions, and then we will round up in about 1 hour's time.
So with that little introduction, I'd like to hand over to you, Nico.
Nico Delvaux
Thank you, Björn, and also good morning from my side.
Q1 result, I would say, very similar to our Q3 and Q4 results of last year with a tough comparison compared to the same quarter a year ago, with continued challenging market conditions on the Residential side and definitely also with 3 fewer working days in March. We posted a negative organic growth of 2% for the quarter. But then also this quarter, good to see that lower, in this case, negative organic growth is overcompensated by very strong growth through acquisitions, 11% in the quarter.
Neutral currency effect, so a top line growth of 9%. And I would say a very good operational execution. Of course, despite an important volume drop, we have posted 15.4% EBIT for the quarter. That is including HHI and all related costs, a 16.3% EBITA and a record EBIT margin for Q1 in absolute value. Thanks to good price realization, lower direct material cost and then also good short- and long-term cost actions giving us a good volume leverage on that negative organic growth.
Also seasonally strong cash with a very good cash conversion of 67%, so around double of what we normally expect for Q1. And then we continue our acquisition pace with 3 acquisitions signed in the quarter....
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ASSA ABLOY AB (publ) (ASAZF) Q1 2024 Earnings Call Transcript