Securitas AB Interim Report January-March 2021
STOCKHOLM, May 5, 2021 /PRNewswire/ --
- Total sales MSEK 25 814 (28 420)
- Organic sales growth 0 percent (2)
- Operating income before amortization MSEK 1 256 (1 086)
- Operaing margin 4.9 percent (3.8)
- Items affecting comparability (IAC) MSEK –136 (–45), relating to transformation programs and the cost-savings program in the Group
- Earnings per share SEK 1.86 (1.61)
- Earnings per share, before IAC, SEK 2.11 (1.70)
- Net debt/EBITDA 2.1 (2.4)
- Cash flow from operating activities 102 percent (34)
Comments from the President and CEO
"A good start to the year while continuing the transformation journey"
A RESILIENT BUSINESS
The Group's organic sales growth in the first quarter was 0 percent (2), with all business segments showing positive organic sales growth in the month of March. Although we are seeing signs of commercial activity picking up throughout the Group, the corona pandemic continues to hamper organic sales growth.
The airport security business remains significantly negatively impacted, primarily in Security Services Europe, but we continue to improve profitability through contract reviews.
Sales reductions in the contract portfolio, primarily related to the corona pandemic, were partly offset by the increased level of corona-related extra sales, which continued from 2020 into the first quarter.
The installation business within electronic security continued to be burdened by the corona pandemic, while the strategic acquisitions of STANLEY Security in five countries and FE Moran Security Solutions in the US con-tributed positively to both sales and profitability in the quarter with the integration work progressing accor-ding to plan. Security solutions and electronic security sales was 22 percent (22) of total Group sales in the first quarter.
The operating result for the Group, adjusted for changes in exchange rates, increased by 30 percent and the operating mar-gin was 4.9 percent (3.8) with improvements in all business segments and also supported by the cost-savings program ini-tiated during 2020.
Support from government grants relating mostly to employees on temporary unemployment continued, and total price adjustments in the Group were on par with wage cost increases in the first quarter.
Profitability improvement is a key focus area and we are thus working actively with contract portfolio mana-gement across the Group.
The Group delivered a strong cash flow, albeit at lower organic sales growth, supported by a strong focus on accounts receivable.