Q3 2024 Assa Abloy AB Earnings Call Transcript
Key Points
- Assa Abloy AB (ASAZF) reported a record high EBIT of SEK6.3 billion, with an EBIT margin of 16.7%, the highest for Q3 in seven years.
- The company achieved a strong cash conversion rate of 118%, indicating efficient management of working capital.
- Assa Abloy AB (ASAZF) completed seven acquisitions in Q3, contributing to a 4% net acquired growth, and 18 acquisitions in the first nine months of 2024.
- The EBITA margin reached a record high of 17.7%, showcasing improved profitability.
- Positive organic growth was reported in key regions such as North America and Europe, with North America showing a 1% organic growth and Europe 2%.
- The residential market remains challenging across all major regions, impacting overall growth potential.
- Asia, particularly Greater China, experienced a significant decline with an 18% drop in organic growth due to deteriorating market conditions.
- The company faced a negative currency impact of 3%, primarily due to SEK versus the dollar.
- Organic sales in the Asia Pacific region declined by 6%, with negative sales growth in most parts of the division.
- Entrance Systems saw a 2% decline in organic sales, affected by challenging conditions in the logistics vertical and the residential market.
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Good morning, everyone, and welcome to the presentation of ASSA ABLOY's third interim 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; and our CFO, Erik Pieder. As you know, we will now start this conference with a summary of the report before we open up for your questions.
So we hand over to you, Nico.
Thank you, Björn, and also good morning from my side. Q3 results, we can report good results. We went back to positive organic growth in Q3. I would say, small positive organic growth of only [0%]. But then also this quarter, complemented in a good way to strong growth to our cuisines of plus 4%.
And then very strong execution with an EBIT of SEK6.3 billion, record high level, and an EBIT margin of 16.7%, the highest for Q3 since seven years.
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