Securitas AB Interim Report January–September 2017
JULY–SEPTEMBER 2017<br/><br/>• Total sales MSEK 22 651 (22 316)<br/><br/>• Organic sales growth 5 percent (7)<br/><br/>• Operating income before amortization MSEK 1 230 (1 230)<br/><br/>• Operating margin 5.4 percent (5.5)<br/><br/>• Earnings per share SEK 2.14 (2.00)<br/><br/>JANUARY–SEPTEMBER 2017<br/><br/>• Total sales MSEK 68 173 (64 447)<br/><br/>• Organic sales growth 4 percent (8)<br/><br/>• Operating income before amortization MSEK 3 413 (3 313)<br/><br/>• Operating margin 5.0 percent (5.1)<br/><br/>• Earnings per share SEK 5.73 (5.32)<br/><br/>• Free cash flow/net debt 0.12 (0.12)
COMMENTS FROM THE PRESIDENT AND CEO
Organic sales growth strengthened in the third quarter reaching 5 percent versus 3 percent in the first half year. The quarter reflected a strong market momentum throughout the Group and our ability to deliver complete security solutions is giving us an outstanding competitive advantage. Market dynamics in the US are strong and we are growing faster than the US security market. In Europe we see a gradual recovery of the portfolio. In the Ibero-American business segment, Spain and Portugal continue to grow faster than the security market. This is based on differentiated customer offerings enabled by our consistent investments over the years in security solutions and electronic security.
The operating margin was slightly below last year. It improved in North America while Europe still had negative leverage in a few countries, while the operational over-capacity was largely adjusted by the end of the third quarter. Earnings per share improved by 8 percent with a real change of 7 percent in the first nine months. The strong macro economic conditions and shortage of qualified labor in the US and in Europe will result in higher wage inflation in the coming year. We believe we are strategically well positioned to compensate such increases by price increases and by offering alternative security solutions using technology.
We continue to deliver on our strategy. Security solutions and electronic security continue to grow at a good pace and is becoming a larger part of total Group sales.
As an important part of our strategy, Vision 2020, we are gradually increasing investments in digitizing our customers’ historical and real-time data in order to deliver more predictive security. In combination with our security solutions and electronic security strategy, intelligent security will create greater customer value, enhanced security, and strengthen our leadership in the global security market.
President and Chief Executive Officer
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on October 23, 2017 at 2:00 p.m. (CET) where Securitas’ CEO Alf Göransson will present the report and answer questions. The telephone conference will also be audio cast live via Securitas website.
To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
US: + 1 855 269 2605
Sweden: + 46 8 519 993 55
UK: + 44 203 194 0550
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/investors/webcasts. A recorded version of the audio cast will be available at www.securitas.com/investors/webcasts after the telephone conference.
FOR FURTHER INFORMATION. PLEASE CONTACT:
Micaela Sjökvist, Head of Investor Relations + 46 10 470 3013
Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs + 46 70 287 8662
Securitas is a global knowledge leader in security. We base our protective services on customer-specific needs through different combinations of on-site, mobile and remote guarding, electronic security, fire and safety and corporate risk management. Everywhere from small stores to airports, our 335 000 employees are making a difference.
This is information that Securitas AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 8.00 p.m. (CET) on Sunday, October 22, 2017.