Q3 2024 Securitas AB Earnings Call Transcript
Key Points
- Securitas AB (SCTBF) reported a 5% organic sales growth for the group and a 6% real sales growth in technology and solutions.
- The operating margin improved by 60 basis points to 7.5%, marking the highest margin recorded for the group in the last 20 years.
- Strong performance in Europe, with a 7% organic sales growth and a 7.7% operating margin, driven by improvements in security services.
- Operating cash flow was significantly improved at 115% of the operating result, contributing to a better leverage position.
- The company is making steady progress in its strategic transformation, aiming for an 8% operating margin by the end of 2025.
- North America's performance was slightly below last year, impacted by the termination of an aviation contract.
- The technology business in North America faced negative cost developments after the completed carve-out, affecting margins.
- Pinkerton's performance was weak due to modernization efforts, negatively impacting profitability.
- The operating margin within technology and solutions was slightly below last year due to negative cost developments.
- Items affecting comparability included a SEK697 million charge, with SEK536 million related to the Paragon US government investigation.
Good morning, everyone, and welcome to our Q3 results presentation. We are pleased to present continued good development. We are executing according to our plan with the transformation of Securitas. So let us start by looking at some of the highlights in the third quarter.
The development in the quarter was good. We delivered 5% organic sales growth for the group, 6% real sales growth in technology and solutions. The operating margin improved 60 basis points to 7.5%. And when looking back the last 20 years, this is the highest margin recorded for the group and obviously, something that we feel very good about.
Very strong improvement in Europe in security services, contributed in a significant way to the overall performance improvement. And now it's very positive that we start to operate at a high level also in Europe, which is helping and essentially means that all segments are now performing and executing on the strategic plan.
Looking at the other segments, solid development in Ibero-America and other also
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