2024-02-07 12:02:06 ET
ASSA ABLOY AB (publ) (ASAZF)
Q4 2023 Earnings Conference Call
February 7 2023 3:30 AM ET
Company Participants
Nico Delvaux - President and Chief Executive Officer
Erik Pieder - Chief Financial Officer
Bjorn Tibell - Head of Investor Relations
Conference Call Participants
Daniela Costa - Goldman Sachs
Vivek Midha - Citi
Gael de-Bray - Deutsche Bank
Mattias Holmberg - DNB
Andre Kukhnin - UBS
James Moore - Redburn Atlantic
Alexander Virgo - Bank of America
Andreas Koski - Exane BNP Paribas
Johan Sjöberg - Kepler Cheuvreux
Presentation
Bjorn Tibell
Good morning and welcome to the presentation of ASSA ABLOY's 2023 Year End Report. My name is Bjorn Tibell. I'm heading Investor Relations. And joining me here are ASSA ABLOY's CEO, Nico Delvaux; and our CFO, Erik Pieder. We will now start with the summary of the results before we open up for your questions.
And with that I’d like to hand over to you, Nico.
Nico Delvaux
Thanks, Bjorn and also good morning from my side. Q4 report, I can say that we had a good end of a very strong 2023 for ASSA ABLOY. And I would say Q4 results very similar to Q3 results as well, percent wise, as absolute value wise. We had a low positive organic growth of 0.5% in the quarter, was slightly below 0.5%, therefore rounded off to 0% in the quarter, where it was slightly above 0.5% in Q3 and therefore rounded off to 1%.
We have a strong sales growth in Americas, a good sales growth in Entrance Systems, and then sales decline in the other divisions. But then also this quarter, good to see that a lower organic growth is overcompensated by growth through acquisitions, 11% net in the quarter. And total, top-line up 12%, 1% helped by currency at SEK 37 billion.
And then a very strong operational execution with an operating leverage on that 0.5% growth of more than 330%, giving a very strong underlying margin if we exclude HHI of 16.8%, if we include HHI 15.5%. And then a record strong operating cash flow in the quarter of SEK 7.3 billion. We also continue high acquisition pace with six acquisitions signed in the quarter, was a record year when it comes to number acquisitions and obviously also when it comes to value of acquisitions.
If you look in the numbers, like I said, SEK 37 billion top line, 12% up, 0.5% organic growth, 11% net acquisition, and then helped by currency 1%. An EBITDA margin of high 17.5%, if we exclude HHI and HHI related costs, and then the EBIT margin, like I mentioned, at 16.8%. EBIT at SEK 5.7 billion, also 12 % up....
Read the full article on Seeking Alpha
For further details see:
ASSA ABLOY AB (publ) (ASAZF) Q4 2023 Earnings Call Transcript