Q2 2024 Assa Abloy AB Earnings Call Transcript
Key Points
- Assa Abloy AB (ASAZF) reported a top-line growth of 10% in Q2 2024.
- The company achieved a record operating profit for the quarter, exceeding SEK6 billion.
- Strong operational execution led to an operating margin of 16% and an EBITDA margin of 16.9%.
- Excellent cash conversion rate of 107% was achieved in the quarter.
- The company completed eight acquisitions in the quarter, contributing to an 11% growth through acquisitions.
- Organic sales development was negative at minus 1%, primarily due to challenging market conditions in the residential sector.
- Sales declined in the APAC and Global Technologies divisions.
- The residential market in Europe and Australia/New Zealand remains challenging, with recovery expected to take more time.
- The loading dock business in North America experienced a double-digit negative growth due to reduced investments in warehouses.
- Interest costs increased significantly, impacting income before taxes, with SEK850 million in interest costs for the quarter.
Good morning, everyone from Stockholm, and welcome to the presentation of Assa Abloy first half year report in 2024. My name is Bjorn Tibell. I'm heading Investor Relations and joining me here in the studio are Assa Abloy's CEO, Nico Delvaux, and our CFO, Erik Pieder. As usual, we will now start this conference with a presentation and summary of the report before we open up for your questions. So over to you, Nico.
Thank you, Bjorn. Also good morning from my side. Q2, a top-line growth of 10%. We have a negative organic sales development of minus 1% due to in the first place, a continued challenging market on the residential side or say global challenging market on the residential side. Good sales growth in EMEIA and Americas from an organic perspective. Stable sales growth in Entrance Systems, but then sales decline in APAC and Global Technologies.
But then again,
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