ASSA ABLOY: Quarterly Report Q4 2024

STOCKHOLM, Feb. 5, 2025 /PRNewswire/ --

Margin target reached for year 2024

Fourth quarter

• Net sales increased by 7% to SEK 39,575 M (36,970), with organic growth of 0% (0) and acquired net growth of 6% (11). Exchange rates affected sales by 1% (1).
• Organic sales growth was strong in Global Technologies, good in Americas, stable in EMEIA, while organic sales declined in Entrance Systems and declined significantly in Asia Pacific.
• Eight acquisitions with combined annual sales of more than SEK 1 bn were completed in the quarter.
• Operating income¹ (EBITA) increased by 15% to a record SEK 6,898 M (6,008) with an operating margin of 17.4% (16.2).
• Operating income¹ (EBIT) increased by 14% and amounted to a record of SEK 6,529 M (5,722), with an operating margin of 16.5% (15.5).
• Net income¹ amounted to a record SEK 4,214 M (3,969).
• Earnings per share¹ amounted to SEK 3.81 (3.56).
• Record operating cash flow of SEK 8,010 M (7,315).
• The Board of Directors proposes a dividend of SEK 5.90 (5.40) per share for 2024, to be distributed in two equal installments.

Sales and income

¹ Excluding items affecting comparability. Please see the section "Items affecting comparability" in the report for further details about the financial effects in 2024. For information about items affecting comparability in 2023, please see the Year-end report 2023, available at assaabloy.com.

Comments by the President and CEO

Margin target reached for year 2024

As we close 2024, I am proud to share that ASSA ABLOY showed resilience and agility in a mixed market environment, concluding the year with solid performance. For the full year, sales grew by 7%, reflecting strong contribution from acquisitions of 8%, and a small organic sales decline of 1%. Our operating margin expanded to 16.2%, within the target range of 16-17%.

In the fourth quarter of 2024, organic sales were stable, with net positive contribution from acquisitions of 6% and currency effects of 1%. Global Technologies delivered strong organic growth of 5% with strong performance in most business areas and with Physical Access Control having comparable figures at normalized levels for the full quarter. Americas delivered good organic growth of 2%, with strong growth in the North America Non-Residential segment and in Latin America. Organic sales were stable in EMEIA with commercial segments compensating for continued weak residential demand. Similarly, weak residential markets and weak demand for loading docks resulted in an organic sales decline of 2% in Entrance Systems. Asia Pacific's organic sales declined significantly by 11%, mainly due to very weak demand in China.

The operating profit for the quarter increased by 14% to a record SEK 6,529 M with a corresponding margin of 16.5% (15.5). The operating leverage was very strong at 120 bps, driven by continued price/cost tailwind and strong operational execution, overcompensating for dilution from acquisitions. The operating cash flow increased by 10% in the quarter to a record SEK 8,010 M with a cash conversion of 141% (150).

Focus on accelerating our sales growth

Accelerating organic growth remains a key priority going forward. An important part of our strategy is upgrading the installed base with innovative digital and electromechanical products and solutions. We invest 4% of annual sales in R&D which allows us to strengthen our offering and drive the transition forward. Electromechanical products and solutions are the most important growth driver in our portfolio, with currency adjusted growth of 8% in 2024 and an annual growth rate of 9% in the last ten years in our regional divisions. Through upgrades we can support customers with enhanced security and convenience, but also grow recurring revenue streams. Recurring revenue continues to be a key driver for growth with subscription-based models, service agreements, and digital solutions like remote monitoring and mobile access. In 2024, sales of our subscription-based solutions grew by 18%. Our decentralized organization and region-specific product development provide further opportunities in the emerging markets, that only represent 13% of our sales. In 2024, our currency adjusted sales in emerging markets excluding China grew by 10%.

A record 26 acquisitions were completed in 2024, adding annualized sales close to SEK 8 bn. In the fourth quarter, we completed eight acquisitions. Acquisitions remain a key driver for growth and the pipeline remains strong.

By leveraging our market-leading products and solutions with our local knowledge and global presence, we are confident in our ability to drive continued value for our customers, employees and shareholders. Finally, I would like to thank my colleagues for their outstanding contributions during the year and all our stakeholders for your trust.

Stockholm, February 5, 2025

Nico Delvaux
President and CEO

Further information can be obtained from:
Nico Delvaux,
President and CEO, tel. no: +46 8 506 485 82

Erik Pieder,
Executive Vice President and CFO, tel.no: +46 8 506 485 72

Björn Tibell,
Head of Investor Relations, tel. no: +46 70 275 67 68
e-mail: [email protected]

ASSA ABLOY is holding a telephone and web conference at 09.00 on February 5, 2025 which can be followed online at assaabloy.com/investors.

It is possible to submit questions by telephone on: 08–505 100 31, +44 207 107 0613 or +1 631 570 5613

This information is information that ASSA ABLOY 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 persons set out above, at 08.00 CET on February 5, 2025.

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