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ASSA ABLOY
Earnings Release • Feb 5, 2025
2882_10-k_2025-02-05_97c5ee2e-919c-4132-a553-f36869ca4161.pdf
Earnings Release
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Quarterly Report Q4 2024
Full-year summary 2024
February 5, 2025 Experience a safer and more open world
Margin target reached for year 2024
Fourth quarter
- Net sales increased by 7% to SEK 39,575 M (36,970), with organic growth of 0% (0) and acquired net growth of 6% (11). Exchange rates affected sales by 1% (1).
- Organic sales growth was strong in Global Technologies, good in Americas, stable in EMEIA, while organic sales declined in Entrance Systems and declined significantly in Asia Pacific.
- Eight acquisitions with combined annual sales of more than SEK 1 bn were completed in the quarter.
- Operating income1 (EBITA) increased by 15% to a record SEK 6,898 M (6,008) with an operating margin of 17.4% (16.2).
- Operating income1 (EBIT) increased by 14% and amounted to a record of SEK 6,529 M (5,722), with an operating margin of 16.5% (15.5).
- Net income1 amounted to a record SEK 4,214 M (3,969).
- Earnings per share1 amounted to SEK 3.81 (3.56).
- Record operating cash flow of SEK 8,010 M (7,315).
- The Board of Directors proposes a dividend of SEK 5.90 (5.40) per share for 2024, to be distributed in two equal installments.
Sales and income
| Fourth quarter | January-December | |||||
|---|---|---|---|---|---|---|
| 2023 | 2024 | Δ | 2023 | 2024 | Δ | |
| Sales, SEK M | 36,970 | 39,575 | 7% | 140,716 | 150,162 | 7% |
| Of which: | ||||||
| Organic growth | 133 | –112 | 0% | 3,393 | –1,132 | –1% |
| Acquisitions and divestments | 3,572 | 2,215 | 6% | 10,651 | 11,326 | 8% |
| Exchange rate effects | 349 | 502 | 1% | 5,879 | –748 | 0% |
| Operating income (EBIT)1, SEK M | 5,722 | 6,529 | 14% | 22,185 | 24,296 | 10% |
| Operating margin (EBITA)1, % | 16.2% | 17.4% | 16.5% | 17.1% | ||
| Operating margin (EBIT)1, % | 15.5% | 16.5% | 15.8% | 16.2% | ||
| Income before tax1, SEK M | 4,879 | 5,684 | 16% | 19,654 | 20,914 | 6% |
| Net income1, SEK M | 3,969 | 4,214 | 6% | 15,049 | 15,636 | 4% |
| Operating cash flow, SEK M | 7,315 | 8,010 | 10% | 25,232 | 23,052 | –9% |
| Earnings per share1, SEK | 3.56 | 3.81 | 7% | 13.54 | 14.09 | 4% |
1 Excluding items affecting comparability. Please see the section "Items affecting comparability" in the report for further details about the financial effects in 2024. For information about items affecting comparability in 2023, please see the Year-end report 2023, available at assaabloy.com.
Organic growth 0%
Acquired net growth
+6%
Operating income1
+14%
Earnings per share1
+7%
Comments by the President and CEO
Margin target reached for year 2024
As we close 2024, I am proud to share that ASSA ABLOY showed resilience and agility in a mixed market environment, concluding the year with solid performance. For the full year, sales grew by 7%, reflecting strong contribution from acquisitions of 8%, and a small organic sales decline of 1%. Our operating margin expanded to 16.2%, within the target range of 16-17%.
In the fourth quarter of 2024, organic sales were stable, with net positive contribution from acquisitions of 6% and currency effects of 1%. Global Technologies delivered strong organic growth of 5% with strong performance in most business areas and with Physical Access Control having comparable figures at normalized levels for the full quarter. Americas delivered good organic growth of 2%, with strong growth in the North America Non-Residential segment and in Latin America. Organic sales were stable in EMEIA with commercial segments compensating for continued weak residential demand. Similarly, weak residential markets and weak demand for loading docks resulted in an organic sales decline of 2% in Entrance Systems. Asia Pacific's organic sales declined significantly by 11%, mainly due to very weak demand in China.
The operating profit for the quarter increased by 14% to a record SEK 6,529 M with a corresponding margin of 16.5% (15.5). The operating leverage was very strong at 120 bps, driven by continued price/cost tailwind and strong operational execution, overcompensating for dilution from acquisitions. The operating cash flow increased by 10% in the quarter to a record SEK 8,010 M with a cash conversion of 141% (150).
Focus on accelerating our sales growth
Accelerating organic growth remains a key priority going forward. An important part of our strategy is upgrading the installed base with innovative digital and electromechanical products and solutions. We invest 4% of annual sales in R&D which allows us to strengthen our offering and drive the transition forward. Electromechanical products and solutions is the most important growth driver in our portfolio, with currency adjusted growth of 8% in 2024 and an annual growth rate of 9% in the last ten years in our regional divisions. Through upgrades we can support customers with enhanced security and convenience, but also grow recurring revenue streams. Recurring revenue continues to be a key driver for growth with subscription-based models, service agreements, and digital solutions like remote monitoring and mobile access. In 2024, sales of our subscriptionbased solutions grew by 18%. Our decentralized organization and region-specific product development provide further opportunities in the emerging markets, that only represent 13% of our sales. In 2024, our currency adjusted sales in emerging markets excluding China grew by 10%.
A record 26 acquisitions were completed in 2024, adding annualized sales close to SEK 8 bn. In the fourth quarter, we completed eight acquisitions. Acquisitions remain a key driver for growth and the pipeline remains strong.
By leveraging our market-leading products and solutions with our local knowledge and global presence, we are confident in our ability to drive continued value for our customers, employees and shareholders. Finally, I would like to thank my colleagues for their outstanding contributions during the year and all our stakeholders for your trust.
Stockholm, February 5, 2025
Nico Delvaux President and CEO
Sales by quarter and
Operating cash flow by quarter and last 12 months
Sales, 12 months
Fourth quarter
The Group's sales increased by 7% to SEK 39,575 M (36,970). Organic growth amounted to 0% (0). Net growth from acquisitions and divestments was 6% (11), of which 6% (14) were acquisitions and 0% (–3) were divestments. Exchange rates affected sales by 1% (1).
The Group's operating income before amortizations from acquisitions2 (EBITA) amounted to a record SEK 6,898 M (6,008). The corresponding EBITA margin was 17.4% (16.2). The Group's operating income2 (EBIT) amounted to a record SEK 6,529 M (5,722), an increase of 14%. The corresponding operating margin was 16.5% (15.5). Exchange rates had an impact of SEK 28 M (29) on EBIT.
Net financial items amounted to SEK –845 M (–843). The Group's income before tax2 was a record SEK 5,684 M (4,879), an increase of 16% compared to last year. Exchange rates had an impact of SEK 43 M (–5) on income before tax2. The corresponding profit margin was 14.4% (13.2). Earnings per share before and after dilution2 amounted to SEK 3.81 (3.56), an increase of 7% compared to last year.
Operating cash flow totaled a record SEK 8,010 M (7,315), which corresponds to a cash conversion2 of 1.41 (1.50).
The net-debt/equity ratio amounted to 0.66 (0.70) at the end of the quarter. Financial net debt totaled SEK 70,253 M (64,109). New bonds were issued during the quarter for a total value of SEK 117 M while SEK 190 M in maturing long-term loans were repaid. The Group's long-term borrowing totaled SEK 54,989 M (49,917) while the short-term borrowing totaled SEK 11,958 M (9,833).
Full year 2024
The Group's sales for the full year 2024 totaled SEK 150,162 M (140,716), representing an increase of 7%. Organic growth was –1% (3). Growth from acquisitions and divestments was 8% (8), of which 10% (10) came from acquisitions and –2% (–2) from divestments. Exchange rates affected sales by 0% (5).
The Group's operating income before amortizations from acquisitions2 (EBITA) amounted to SEK 25,681 M (23,261). The corresponding EBITA margin was 17.1% (16.5). The Group's operating income (EBIT)2 amounted to SEK 24,296 M (22,185), an increase of 10% compared to last year. The corresponding operating margin was 16.2% (15.8).
Net financial items amounted to SEK –3,382 M (–2,531), primarily due to increased net interest costs during the year. The effective income tax rate excluding items affecting comparability was 25.2% (23.4). The effective income tax rate including items affecting comparability was 25.2% (29.2). Earnings per share before and after dilution2 amounted to SEK 14.09 (13.54), an increase of 4% compared to last year.
Operating cash flow totaled SEK 23,052 M (25,232), which corresponds to a cash conversion2 of 1.10 (1.28).
2 Excluding items affecting comparability. Please see the "Items affecting comparability" section in the report for further details about the financial effects in 2024. For information about items affecting comparability in 2023, please see the Year-end report 2023, available at assaabloy.com.
Events after the reporting period
ASSA ABLOY divested most of its Citizen ID operations to TOPPAN at the end of January 2025. The divestment of the remaining Citizen ID operations to TOPPAN are subject to customary closing conditions and regulatory approvals.
Items affecting comparability, full year
Smart Residential divestment
Purchase price adjustments and exit costs related to last year's divestment of the Smart Residential business in the U.S. and Canada totaled net costs of SEK 21 M. The corresponding cost after income tax was SEK 15 M.
Restructuring measures
Restructuring payments totaled SEK 323 M (190) for the quarter. The programs proceeded according to plan. At the end of the quarter provisions of SEK 39 M remained in the balance sheet for carrying out these programs.
Quarterly comments by division
Opening Solutions EMEIA
Sales for the quarter in EMEIA totaled SEK 6,481 M (6,339), with an organic sales growth of 0% (–2). Organic sales growth was good in Central Europe and in the Middle East/Africa/India, stable in the Nordics, but declined in South Europe and in the UK/Ireland. Sales growth from acquisitions was 1%. Operating income excluding items affecting comparability totaled SEK 962 M (915), which represents an operating margin (EBIT) of 14.8% (14.4). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 15.9% (14.8). Operating cash flow before non-cash items and interest paid totaled SEK 1,591 M (1,836).
Opening Solutions Americas
Sales for the quarter in the Americas totaled SEK 11,033 M (10,508), with an organic sales growth of 2% (5). Organic sales growth was strong in Latin America and North America's non-residential segment, but declined in North America's residential segment. Sales growth from acquisitions was 2%. Operating income excluding items affecting comparability totaled SEK 1,950 M (1,854), which represents an operating margin (EBIT) of 17.7% (17.6). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 12.7% (16.3). Operating cash flow before non-cash items and interest paid totaled SEK 2,032 M (2,120).
Opening Solutions Asia Pacific
Sales for the quarter in Asia Pacific totaled SEK 2,217 M (2,468), with an organic sales growth of –11% (–1). Organic sales growth was strong in South Korea, but declined in Pacific and declined significantly in both China and South-East Asia. Sales growth from acquisitions was 0%. Operating income excluding items affecting comparability totaled SEK 119 M (107), which represents an operating margin (EBIT) of 5.4% (4.3).
Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 5.8% (5.8). Operating cash flow before non-cash items and interest paid totaled SEK 439 M (605).
Global Technologies
Sales for the quarter in Global Technologies totaled SEK 6,493 M (5,885), with an organic sales growth of 5% (–7). Organic sales growth was very strong in Physical Access Control and Global Solutions, but declined in HID's other business unit areas. Sales growth from acquisitions was 3%. Operating income excluding items affecting comparability totaled SEK 1,253 M (910), which represents an operating margin (EBIT) of 19.3% (15.5). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 14.8% (15.2). Operating cash flow before non-cash items and interest paid totaled SEK 1,923 M (1,191).
Entrance Systems
Sales for the quarter in Entrance Systems totaled SEK 13,839 M (12,189), with an organic sales growth of –2% (3). Organic sales growth was strong in Pedestrian and stable in Perimeter Security, but declined in Residential and Industrial. Net sales growth from acquisitions and divestments was 14%. Operating income excluding items affecting comparability totaled SEK 2,424 M (2,126), which represents an operating margin (EBIT) of 17.5% (17.4). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 20.1% (20.3). Operating cash flow before non-cash items and interest paid totaled SEK 2,768 M (2,601).
Acquisitions and divestments
Acquisitions
A record of 26 acquisitions were completed during the year, of which eight were acquired during the fourth quarter. The combined acquisition price for all business acquired during the year, including adjustments from prior-year acquisitions, totaled SEK 12,957 M. The corresponding acquisition price on a cash- and debt- free basis totaled SEK 13,535 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life totaled SEK 9,820 M. Estimated deferred considerations for current year acquisitions were SEK 678 M.
On December 18, 2024, it was announced that ASSA ABLOY had acquired Norshield Security Products, a US manufacturer of high-security openings and enclosures. Sales for 2023 amounted to about SEK 170 M.
On December 17, 2024, it was announced that ASSA ABLOY had acquired Roger, a Polish manufacturer of on-premises electronic access control systems and related hardware. Sales for 2023 amounted to about SEK 110 M.
On December 3, 2024, it was announced that ASSA ABLOY had acquired 9Solutions, a Finnish provider of highly integrated AI-powered real time locating and critical communication and collaboration solutions in healthcare, with a focus on senior care. Sales for 2023 amounted to about SEK 110 M.
On December 2, 2024, it was announced that ASSA ABLOY had acquired Premier Steel Doors and Frames, a US manufacturer of hollow metal doors and frames, metal building door systems, and aluminum windows. Sales for 2023 amounted to about SEK 420 M.
On November 12, 2024, it was announced that ASSA ABLOY had acquired IXLA, an Italian manufacturer of advanced laser and color personalization systems for cards and passports. Sales for 2023 amounted to about SEK 150 M.
On November 6, 2024, it was announced that ASSA ABLOY had acquired Lawrence Doors, a US manufacturer of coiling steel doors, grilles and counter shutters. Sales for 2023 amounted to about SEK 320 M.
Divestments
On October 18, 2024, it was announced that ASSA ABLOY had signed an agreement to sell its Citizen ID business to TOPPAN. The Citizen ID business manufactures, designs, and implements physical and mobile identity solutions for government-to-citizen programs around the globe. Citizen ID has some 450 employees with manufacturing facilities in Ireland, Malta and the US. Sales in 2024 amounted to about SEK 1,400 M.
The transaction is subject to customary closing conditions, regulatory approvals, and employee consultation. The transaction will have a slightly positive effect on ASSA ABLOY's operating margin going forward.
Sustainable development
In December 2024, ASSA ABLOY was named as a constituent of the Dow Jones Sustainability Index Europe for the 4th year in a row. The index tracks the performance of the top 20% of the 600 largest European companies in the S&P Global Broad Market IndexSM that lead the field in terms of sustainability. This is a positive recognition of our ambition level and our progress to date on our sustainability program.
ASSA ABLOY will not have a standalone Sustainability Report for 2024. As per the new requirements of the EU Corporate Sustainability Reporting Directive (CSRD) regulation, our Annual Report and Sustainability Report will be combined into a single report. The Annual Report, which will include results of the Group's progress towards our 2025 program and science-based targets, as well as additional sustainability insights will be available from 17 March 2025 on the company's website, www.assaabloy.com.
Parent company
Other operating income for the parent company ASSA ABLOY AB totaled SEK 7,641 M (8,488) for the full year 2024. Operating income for the same period totaled SEK 2,138 M (2,951). Investments in tangible and intangible assets totaled SEK 20 M (8). Liquidity is good and the equity ratio was 26.7% (26.9).
Dividend and Annual General Meeting
A second dividend payment of SEK 2.70 per share for the 2023 financial year was distributed on 14 November 2024.
The Board of Directors proposes a dividend of SEK 5.90 (5.40) per share for the 2024 financial year, an increase of 9% compared with last year. It is proposed to pay the dividend in two equal installments, the first with record date 25 April 2025 and the second with record date 11 November 2025. If the proposal is adopted by the Annual General Meeting, the first installment is expected to be paid on 30 April 2025 and the second installment on 14 November 2025.
The 2025 Annual General Meeting will be held on 23 April 2025. The Annual Report for 2024 will be available from 17 March 2025 on the company's website, www.assaabloy.com.
Accounting principles
ASSA ABLOY applies IFRS Accounting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles have been applied as in the last Annual Report. No new or amended standards with material impact on the Group's financial reports have been applied for the first time in 2024.
This Report was prepared in accordance with IAS 34 "Interim Financial Reporting" and the Swedish Annual Accounts Act. The Report for the Parent Company was prepared in accordance with the Annual Accounts Act and RFR 2 "Reporting by a Legal Entity".
ASSA ABLOY makes use of a number of financial performance measures that are not defined in the reporting rules that the company uses described as "alternative performance measures." For definitions of financial performance measures, refer to Page 17 of this Report. Information about how these measures have been calculated is available on the company's website, www.assaabloy.com.
To reconcile how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company's Annual Report. The Annual Reports for the years 1994 to 2023 appear on the company's website.
All comparative numbers for income statement and cash flow items relate to the corresponding period last year, unless otherwise indicated. Comparative numbers for the balance sheet relate to the most recent year-end, unless otherwise indicated.
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise.
Transactions with related parties
No transactions that significantly affected the company's position and income have taken place between ASSA ABLOY and related parties, except for matters in the normal course of business such as paying dividends to shareholders.
Risks and uncertainty factors
ASSA ABLOY is an international Group with a wide geographical spread, involving exposure to various forms of strategic, operational, and financial risks. Strategic risks refer to changes in the business environment with potentially significant effects on ASSA ABLOY's operations and business objectives. Operational risks comprise risks directly attributable to business operations, entailing a potential impact on the Group's financial position and performance. Financial risks mainly comprise financing risk, currency risk, interest-rate risk, credit risk, and risks associated with the Group's pension obligations.
Risk-taking in itself provides opportunities for continued economic growth, but naturally the risks may also have a negative impact on business operations and company goals. It is therefore essential to have a systematic and efficient risk assessment process and an effective risk management program in general.
The purpose of risk management at ASSA ABLOY is not to avoid risks, but to take a controlled approach to identifying, managing and minimizing the effects of these risks. This work is based on an assessment of the probability of the risks and their potential impact on the Group.
The war in Ukraine and the conflict in the Middle East may have a negative business impact on ASSA ABLOY in both the short- and long-term, but the direct business effects are currently seen as limited. For a more detailed description of particular risks and risk management, please see the 2023 Annual Report.
M&A and FX guidance
The guidance below relating to two key figures is provided to facilitate financial modeling but should not be viewed as forecasting market outlooks or ASSA ABLOY's business performance.
Acquisitions and divestments
It is estimated that completed acquisitions and divestments, on a rolling 12 month basis as of December 31, 2024, will have an effect of 4% on sales in the first quarter of 2025 versus the same period last year, while the effect on the operating margin is estimated to be dilutive in the first quarter of 2025.
Exchange rate effects
On the basis of the currency rates on December 31, 2024, it is estimated that the weighted currency effects on sales in the first quarter of 2025 versus the same period last year will be 4%, while the effect on the operating margin is estimated to be accretive in the first quarter of 2025.
Review
The Company's Auditors have not carried out any review of this Report for the fourth quarter of 2024.
Stockholm, February 5, 2025
Nico Delvaux President and CEO
Financial information
The Annual Report for 2024 will be published on 17 March 2025.
The Quarterly Report for the first quarter of 2025 will be published on
23 April 2025.
The Annual General Meeting 2025 will be held on 23 April 2025.
Further information can be obtained from:
Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, Executive Vice President and CFO, tel.no: +46 8 506 485 72
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68, e-mail: [email protected]
ASSA ABLOY is holding a telephone and web conference at 09.00 on February 5, 2025
which can be followed online at assaabloy.com/investors.
It is possible to submit questions by telephone on: 08–505 100 31, +44 207 107 0613 or +1 631 570 5613
This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on February 5, 2025.
ASSA ABLOY AB (publ) Box 703 40 107 23 Stockholm Visiting address Klarabergsviadukten 90, Stockholm, Sweden Tel +46 (0)8 506 485 00 Fax +46 (0)8 506 485 85 www.assaabloy.com Corporate identity number: 556059-3575 No.04 2025
Financial information – Group
| CONDENSED INCOME STATEMENT | Q4 | Jan-Dec | ||
|---|---|---|---|---|
| SEK M | 2023 | 2024 | 2023 | 2024 |
| Sales | 36,970 | 39,575 | 140,716 | 150,162 |
| Cost of goods sold | -22,061 | -22,992 | -84,212 | -87,434 |
| Gross income | 14,909 | 16,584 | 56,504 | 62,728 |
| Selling, administrative and R&D costs and other operating income & expenses | -9,307 | -10,123 | -36,054 | -38,523 |
| Capital result from divestment of subsidiaries, incl. exit costs1 | -69 | 99 | 3,588 | 24 |
| Impairment of goodwill and other intangible assets from business combinations | 1 | - | -2,271 | - |
| Share of earnings in associates | 5 | 23 | 18 | 45 |
| Operating income | 5,539 | 6,583 | 21,785 | 24,275 |
| Finance net | -843 | -845 | -2,531 | -3,382 |
| Income before tax | 4,696 | 5,739 | 19,254 | 20,893 |
| Tax on income | -717 | -1,483 | -5,615 | -5,272 |
| Net income for the period | 3,979 | 4,255 | 13,639 | 15,621 |
| Net income for the period attributable to: | ||||
| Parent company's shareholders | 3,959 | 4,272 | 13,633 | 15,639 |
| Non-controlling interests | 20 | -17 | 7 | -18 |
| Earnings per share | ||||
| Before and after dilution, SEK | 3.56 | 3.85 | 12.27 | 14.08 |
| Before and after dilution and excluding items affecting comparability, SEK | 3.56 | 3.81 | 13.54 | 14.09 |
| CONDENSED STATEMENT OF COMPREHENSIVE INCOME | Q4 | Jan-Dec | ||
|---|---|---|---|---|
| SEK M | 2023 | 2024 | 2023 | 2024 |
| Net income for the period | 3,979 | 4,255 | 13,639 | 15,621 |
| Other comprehensive income: | ||||
| Items that will not be reclassified to profit or loss | ||||
| Actuarial gain/loss on post-employment benefit obligations, net after tax | -4 | -143 | -1 | 70 |
| Total | -4 | -143 | -1 | 70 |
| Items that may be reclassified subsequently to profit or loss | ||||
| Share of other comprehensive income of associates | -5 | -2 | -63 | -1 |
| Cashflow hedges and net investment hedges, net after tax | -146 | 185 | -66 | 94 |
| Cost of hedging | -23 | -3 | -23 | -8 |
| Exchange rate differences | -5,706 | 5,008 | -2,537 | 5,663 |
| Tax attributable to items that may be reclassified subsequently to profit or loss | 3 | -4 | 5 | -3 |
| Total | -5,877 | 5,183 | -2,684 | 5,745 |
| Total other comprehensive income | -5,881 | 5,040 | -2,685 | 5,814 |
| Total comprehensive income for the period | -1,902 | 9,295 | 10,954 | 21,435 |
| Total comprehensive income for the period attributable to: | ||||
| Parent company's shareholders | -1,921 | 9,316 | 10,953 | 21,459 |
| Non-controlling interests | 19 | -21 | 2 | -24 |
1) Please see the section 'Items affecting comparability' on page 4 in the report for further details about exit costs and the financial effects in 2024.
Financial information - Group
| 31 Dec CONDENSED BALANCE SHEET |
31 Dec | |
|---|---|---|
| SEK M 2023 |
2023 | 2024 |
| ASSETS | ||
| Non-current assets | ||
| 127,704 Intangible assets |
127,704 | 145,405 |
| 11,460 Property, plant and equipment |
11,460 | 12,653 |
| 5,296 Right-of-use assets |
5,296 | 6,295 |
| 622 Investments in associates |
622 | 710 |
| 412 Other financial assets |
412 | 698 |
| 1,863 Deferred tax assets |
1,863 | 2,097 |
| 147,357 Total non-current assets |
147,357 | 167,859 |
| Current assets | ||
| 18,603 Inventories |
18,603 | 21,020 |
| 20,934 Trade receivables |
20,934 | 23,444 |
| 7,991 Other current receivables and investments |
7,991 | 6,778 |
| 1,466 Cash and cash equivalents |
1,466 | 4,504 |
| 48,994 Total current assets |
48,994 | 55,747 |
| 196,351 TOTAL ASSETS |
196,351 | 223,605 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| 91,629 Equity attributable to Parent company's shareholders |
91,629 | 107,071 |
| 16 Non-controlling interests |
16 | 10 |
| 91,644 Total equity |
91,644 | 107,080 |
| Non-current liabilities | ||
| 49,917 Long-term loans |
49,917 | 54,989 |
| 4,001 Non-current lease liabilities |
4,001 | 4,817 |
| 2,991 Deferred tax liabilities |
2,991 | 3,322 |
| 3,222 Other non-current liabilities and provisions |
3,222 | 2,927 |
| 60,131 Total non-current liabilities |
60,131 | 66,056 |
| Current liabilities | ||
| 9,833 | 9,833 | 11,958 |
| Short-term loans 1,443 Current lease liabilities |
1,443 | 1,737 |
| 11,320 Trade payables |
11,320 | 12,594 |
| 21,980 Other current liabilities and provisions |
21,980 | 24,180 |
| 44,576 Total current liabilities |
44,576 | 50,469 |
| 196,351 TOTAL EQUITY AND LIABILITIES |
196,351 | 223,605 |
| CHANGES IN EQUITY | Equity attributable to: | ||
|---|---|---|---|
| Parent | Non | ||
| company's | controlling | Total | |
| SEK M | shareholders | interests | equity |
| Opening balance 1 January 2023 | 86,014 | 12 | 86,026 |
| Net income for the period | 13,633 | 7 | 13,639 |
| Other comprehensive income | -2,680 | -5 | -2,685 |
| Total comprehensive income | 10,953 | 2 | 10,954 |
| Dividend | -5,332 | - | -5,332 |
| Share-based incentive programs | -7 | - | -7 |
| Change in non-controlling interest | 0 | 2 | 2 |
| Total transactions with shareholders | -5,338 | 2 | -5,336 |
| Closing balance 31 December 2023 | 91,629 | 16 | 91,644 |
| Opening balance 1 January 2024 | 91,629 | 16 | 91,644 |
|---|---|---|---|
| Net income for the period | 15,639 | -18 | 15,621 |
| Other comprehensive income | 5,820 | -6 | 5,814 |
| Total comprehensive income | 21,459 | -24 | 21,435 |
| Dividend | -5,998 | -1 | -5,999 |
| Share-based incentive programs | -19 | - | -19 |
| Change in non-controlling interest | - | 18 | 18 |
| Total transactions with shareholders | -6,017 | 18 | -5,999 |
| Closing balance 31 December 2024 | 107,071 | 10 | 107,080 |
Financial information - Group
| CONDENSED STATEMENT OF CASH FLOWS | Q4 | Jan-Dec | |||
|---|---|---|---|---|---|
| SEK M | 2023 | 2024 | 2023 | 2024 | |
| OPERATING ACTIVITIES | |||||
| Operating income | 5,539 | 6,583 | 21,785 | 24,275 | |
| Add back of | |||||
| Depreciation/amortization/write-downs | 1,590 | 1,563 | 5,174 | 5,645 | |
| Items affecting comparability | 183 | -54 | 400 | 21 | |
| Other non-cash items | 0 | -25 | 123 | 14 | |
| Restructuring payments | -190 | -323 | -613 | -748 | |
| Changes in working capital | 1,927 | 1,608 | 3,836 | 208 | |
| Cash flow before interest and tax | 9,049 | 9,352 | 30,704 | 29,415 | |
| -778 | -797 | -2,122 | -3,251 | ||
| Interest paid and received | -1,825 | -1,065 | -7,289 | -4,772 | |
| Tax paid on income Cash flow from operating activities |
6,446 | 7,490 | 21,294 | 21,391 | |
| INVESTING ACTIVITIES | |||||
| Net investments in intangible assets and property, plant and equipment | -727 | -383 | -2,419 | -2,063 | |
| Investments in subsidiaries | -1,553 | -2,995 | -53,566 | -12,136 | |
| Divestments of subsidiaries | - | 58 | 8,114 | 460 | |
| Other investments and disposals | -26 | -186 | -27 | -186 | |
| Cash flow from investing activities | -2,307 | -3,506 | -47,899 | -13,925 | |
| FINANCING ACTIVITIES | |||||
| Dividends | -2,666 | -2,999 | -5,332 | -5,999 | |
| Repayment of lease liabilities | -420 | -485 | -1,543 | -1,797 | |
| Net cash effect of changes in borrowings | -1,167 | -74 | 31,638 | 3,381 | |
| Cash flow from financing activities | -4,291 | -3,591 | 24,726 | -4,447 | |
| CASH FLOW FOR THE PERIOD | -152 | 393 | -1,880 | 3,019 | |
| CASH AND CASH EQUIVALENTS | |||||
| Cash and cash equivalents at beginning of period | 1,688 | 4,073 | 3,417 | 1,466 | |
| Cash flow for the period | -152 | 393 | -1,880 | 3,019 | |
| Effect of exchange rate differences | -71 | 38 | -71 | 20 | |
| Cash and cash equivalents at end of period | 1,466 | 4,504 | 1,466 | 4,504 |
Quarterly information - Group
| THE GROUP IN SUMMARY SEK M |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 |
Jan-Dec 2023 |
Jan-Dec 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 32,915 | 32,391 | 34,474 | 36,881 | 36,970 | 35,200 | 37,968 | 37,418 | 39,575 | 140,716 | 150,162 |
| Organic growth | 9% | 8% | 3% | 1% | 0% | -2% | -1% | 0% | 0% | 3% | -1% |
| Gross income1 | 13,199 | 13,393 | 14,231 | 15,123 | 15,024 | 14,530 | 15,858 | 15,756 | 16,584 | 57,771 | 62,728 |
| Gross margin 1 | 40.1% | 41.3% | 41.3% | 41.0% | 40.6% | 41.3% | 41.8% | 42.1% | 41.9% | 41.1% | 41.8% |
| EBITDA1 EBITDA margin 1 |
6,298 19.1% |
6,241 19.3% |
6,658 19.3% |
7,148 19.4% |
7,312 19.8% |
6,728 19.1% |
7,485 19.7% |
7,635 20.4% |
8,092 20.4% |
27,358 19.4% |
29,940 19.9% |
| Depreciation, excl attrib. to business combinations | -961 | -862 | -936 | -995 | -1,304 | -988 | -1,051 | -1,026 | -1,194 | -4,098 | -4,259 |
| EBITA1 | 5,338 | 5,379 | 5,722 | 6,152 | 6,008 | 5,740 | 6,434 | 6,609 | 6,898 | 23,261 | 25,681 |
| EBITA margin 1 | 16.2% | 16.6% | 16.6% | 16.7% | 16.2% | 16.3% | 16.9% | 17.7% | 17.4% | 16.5% | 17.1% |
| Amortization attrib. to business combinations | -185 | -193 | -222 | -376 | -285 | -313 | -349 | -354 | -369 | -1,076 | -1,386 |
| Operating income (EBIT)1 Operating margin (EBIT) 1 |
5,152 15.7% |
5,186 16.0% |
5,500 16.0% |
5,777 15.7% |
5,722 15.5% |
5,427 15.4% |
6,085 16.0% |
6,255 16.7% |
6,529 16.5% |
22,185 15.8% |
24,296 16.2% |
| Items affecting comparability1 | - | -1 225 | 1,376 | -367 | -183 | -18 | -13 | -43 | 54 | -400 | -21 |
| Operating income (EBIT) | 5,152 | 3,961 | 6,875 | 5,409 | 5,539 | 5,409 | 6,071 | 6,211 | 6,583 | 21,785 | 24,275 |
| Operating margin (EBIT) | 15.7% | 12.2% | 19.9% | 14.7% | 15.0% | 15.4% | 16.0% | 16.6% | 16.6% | 15.5% | 16.2% |
| Net financial items | -387 | -343 | -445 | -900 | -843 | -811 | -849 | -878 | -845 | -2,531 | -3,382 |
| Income before tax | 4,766 | 3,619 | 6,430 | 4,509 | 4,696 | 4,598 | 5,223 | 5,333 | 5,739 | 19,254 | 20,893 |
| Profit margin Tax on income |
14.5% -1,036 |
11.2% -905 |
18.7% -2,854 |
12.2% -1,139 |
12.7% -717 |
13.1% -1,150 |
13.8% -1,306 |
14.3% -1,333 |
14.5% -1,483 |
13.7% -5,615 |
13.9% -5,272 |
| Net income for the period | 3,729 | 2,714 | 3,576 | 3,371 | 3,979 | 3,449 | 3,917 | 4,000 | 4,255 | 13,639 | 15,621 |
| Net income attributable to: | |||||||||||
| Parent company's shareholders | 3,728 | 2,713 | 3,574 | 3,386 | 3,959 | 3,452 | 3,917 | 3,998 | 4,272 | 13,633 | 15,639 |
| Non-controlling interests | 1 | 1 | 1 | -15 | 20 | -3 | 0 | 2 | -17 | 7 | -18 |
| OPERATING CASH FLOW | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Jan-Dec | Jan-Dec |
| SEK M Operating income (EBIT) |
2022 5,152 |
2023 3,961 |
2023 6,875 |
2023 5,409 |
2023 5,539 |
2024 5,409 |
2024 6,071 |
2024 6,211 |
2024 6,583 |
2023 21,785 |
2024 24,275 |
| Reversal items affecting comparability | - | 1 225 | -1,376 | 367 | 183 | 18 | 13 | 43 | -54 | 400 | 21 |
| Depreciation and amortization | 1,146 | 1,055 | 1,158 | 1,371 | 1,590 | 1,301 | 1,400 | 1,380 | 1,563 | 5,174 | 5,645 |
| Net capital expenditure | -735 | -516 | -572 | -604 | -727 | -429 | -596 | -655 | -383 | -2,419 | -2,063 |
| Change in working capital | 1,548 | -1,111 | 1,267 | 1,754 | 1,927 | -2,091 | -111 | 802 | 1,608 | 3,836 | 208 |
| Interest paid and received Repayment of lease liabilities |
-192 -360 |
-242 -352 |
-364 -363 |
-738 -409 |
-778 -420 |
-650 -402 |
-772 -456 |
-1,032 -453 |
-797 -485 |
-2,122 -1,543 |
-3,251 -1,797 |
| Other non-cash items | 29 | 50 | 45 | 27 | 0 | -60 | 55 | 44 | -25 | 123 | 14 |
| Operating cash flow | 6,588 | 4,069 | 6,671 | 7,177 | 7,315 | 3,096 | 5,604 | 6,341 | 8,010 | 25,232 | 23,052 |
| Cash conversion | 1.38 | 0.84 | 1.32 | 1.47 | 1.50 | 0.67 | 1.07 | 1.18 | 1.41 | 1.28 | 1.10 |
| CHANGE IN NET DEBT | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Jan-Dec | Jan-Dec |
| SEK M | 2022 | 2023 | 2023 | 2023 | 2023 | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 |
| Net debt at beginning of period | 30,618 | 31,732 | 29,336 | 69,851 | 68,736 | 64,109 | 67,536 | 68,198 | 66,927 | 31,732 | 64,109 |
| Operating cash flow | -6,588 | -4,069 | -6,671 | -7,177 | -7,315 | -3,096 | -5,604 | -6,341 | -8,010 | -25,232 | -23,052 |
| Restructuring payments Tax paid on income |
171 1,452 |
109 726 |
146 2,281 |
167 2,456 |
190 1,825 |
137 712 |
138 1,490 |
150 1,505 |
323 1,065 |
613 7,289 |
748 4,772 |
| Acquisitions and divestments | 5,080 | 367 | 40,773 | 3,783 | 1,903 | 2,038 | 2,182 | 5,592 | 3,297 | 46,826 | 13,109 |
| Dividend | 2,333 | - | 2,666 | - | 2,666 | - | 2,999 | - | 2,999 | 5,332 | 5,999 |
| Actuarial gain/loss on post-employment benefit oblig. | -906 | 47 | -92 | 41 | 12 | -142 | -96 | -50 | 266 | 8 | -22 |
| Change to lease liabilities | 62 | 254 | 138 | 111 | 125 | 292 | -105 | -95 | 149 | 628 | 241 |
| Exchange rate differences, etc. | -490 | 171 | 1,274 | -496 | -4,033 | 3,488 | -342 | -2,033 | 3,236 | -3,085 | 4,349 |
| Net debt at end of period Net debt/Equity |
31,732 0.37 |
29,336 0.33 |
69,851 0.75 |
68,736 0.71 |
64,109 0.70 |
67,536 0.68 |
68,198 0.68 |
66,927 0.66 |
70,253 0.66 |
64,109 | 70,253 |
| NET DEBT | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| SEK M | 2022 | 2023 | 2023 | 2023 | 2023 | 2024 | 2024 | 2024 | 2024 | ||
| Interest-bearing assets | -224 | -221 | -484 | -495 | -459 | -504 | -248 | -257 | -249 | ||
| Cash and cash equivalents | -3,417 | -2,811 | -6,665 | -1,688 | -1,466 | -2,437 | -3,605 | -4,073 | -4,504 | ||
| Derivative financial instruments, net | 288 | 306 | 15 | 284 | -595 | -251 | 116 | -456 | 26 | ||
| Pension provisions | 1,351 | 1,379 | 1,415 | 1,471 | 1,435 | 1,283 | 1,186 | 1,232 | 1,478 | ||
| Lease liabilities Interest-bearing liabilities |
3,907 29,826 |
4,182 26,500 |
5,607 69,965 |
5,641 63,523 |
5,443 59,751 |
6,020 63,425 |
6,001 64,748 |
5,890 64,591 |
6,554 66,948 |
||
| Total | 31,732 | 29,336 | 69,851 | 68,736 | 64,109 | 67,536 | 68,198 | 66,927 | 70,253 | ||
| CAPITAL EMPLOYED AND FINANCING | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| SEK M | 2022 | 2023 | 2023 | 2023 | 2023 | 2024 | 2024 | 2024 | 2024 | ||
| Goodwill | 75,873 | 75,075 | 117,142 | 119,006 | 92,873 | 99,680 | 99,317 | 99,199 | 106,874 | ||
| Other intangible assets | 15,024 | 15,539 | 15,918 | 15,333 | 34,831 | 36,000 | 36,970 | 36,463 | 38,531 | ||
| Property, plant and equipment | 10,106 | 10,178 | 11,885 | 12,111 | 11,460 | 12,129 | 12,134 | 12,222 | 12,653 | ||
| Right-of-use assets | 3,804 | 4,075 | 5,476 | 5,501 | 5,296 | 5,837 | 5,789 | 5,670 | 6,295 | ||
| Other capital employed Restructuring reserve |
13,244 -294 |
14,206 -1,229 |
14,277 -1,140 |
13,958 -941 |
12,060 -767 |
14,534 -662 |
14,605 -514 |
14,478 -358 |
13,019 -39 |
||
| Capital employed | 117,758 | 117,844 | 163,558 | 164,969 | 155,753 | 167,517 | 168,300 | 167,674 | 177,333 | ||
| Net debt | 31,732 | 29,336 | 69,851 | 68,736 | 64,109 | 67,536 | 68,198 | 66,927 | 70,253 | ||
| Non-controlling interests | 12 | 12 | 10 | 36 | 16 | 12 | 12 | 16 | 10 | ||
| Equity attributable to Parent company´s shareholders | 86,014 | 88,496 | 93,696 | 96,197 | 91,629 | 99,969 | 100,090 | 100,731 | 107,071 | ||
| OTHER KEY RATIOS ETC | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| Earnings per share, SEK | 2022 3,36 |
2023 2,44 |
2023 3,22 |
2023 3,05 |
2023 3,56 |
2024 3,11 |
2024 3,53 |
2024 3,60 |
2024 3,85 |
||
| Earnings per share, excl IAC, SEK | 3,36 | 3,32 | 3,36 | 3,31 | 3,56 | 3,12 | 3,54 | 3,63 | 3,81 | ||
| Shareholders' equity per share, SEK | 77,44 | 79,67 | 84,35 | 86,60 | 82,49 | 90,00 | 90,11 | 90,68 | 96,39 | ||
| Return on capital employed | 16,9% | 17,4% | 17,2% | 16,3% | 15,6% | 14,6% | 14,0% | 14,2% | 14,4% | ||
| Return on equity Net debt/EBITDA |
17,1% 1,4 |
16,2% 1,2 |
15,8% 2,8 |
14,7% 2,6 |
15,3% 2,3 |
15,3% 2,4 |
15,2% 2,4 |
15,6% 2,3 |
15,7% 2,3 |
||
| Average number of employees | 52,463 | 52,960 | 53,824 | 56,289 | 56,845 | 61,282 | 62,538 | 62,634 | 62,825 | ||
| Average adjusted capital employed | 109,372 | 113,480 | 120,917 | 132,788 | 142,611 | 153,385 | 164,603 | 165,649 | 168,363 | ||
| Average number of shares, thousands | 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 | ||||||||||
| Items affecting comparability, net of tax | - | -978 | -156 | -285 | 10 | -13 | -10 | -33 | 41 |
1) Excluding items affecting comparability. Please see the section 'Items affecting comparability' on page 4 in the report for further details about the financial effects in 2024. For information about items affecting comparability in 2023, please see the Year-end report 2023, available on assaabloy.com
Reporting by division
| Q4 and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| Sales, external | 6,197 | 6,309 | 10,486 | 11,003 | 2,273 | 2,012 | 5,852 | 6,439 | 12,160 | 13,813 | - | - | 36,970 | 39,575 |
| Sales, internal | 141 | 172 | 22 | 30 | 194 | 205 | 33 | 55 | 28 | 26 | -419 | -488 | - | - |
| Sales | 6,339 | 6,481 | 10,508 11,033 | 2,468 | 2,217 | 5,885 | 6,493 | 12,189 13,839 | -419 | -488 | 36,970 | 39,575 | ||
| Organic growth | -2% | 0% | 5% | 2% | -1% | -11% | -7% | 5% | 3% | -2% | - | - | 0% | 0% |
| Acquisitions and divestments | 2% | 1% | 38% | 2% | -6% | 0% | 9% | 3% | 1% | 14% | - | - | 11% | 6% |
| Exchange-rate effects | 2% | 1% | -2% | 1% | 0% | 1% | 1% | 2% | 2% | 2% | - | - | 1% | 1% |
| Share of earnings in associates | - | - | - | - | -6 | 18 | 11 | 0 | - | 6 | - | - | 5 | 23 |
| EBIT, excl items affecting | ||||||||||||||
| comparability | 915 | 962 | 1,854 | 1,950 | 107 | 119 | 910 | 1,253 | 2,126 | 2,424 | -190 | -179 | 5,722 | 6,529 |
| EBIT margin, excl items affecting | 14.4% | 14.8% | 17.6% | 17.7% | 4.3% | 5.4% | 15.5% | 19.3% | 17.4% | 17.5% | - | - | 15.5% | 16.5% |
| comparability | ||||||||||||||
| Items affecting comparability1 | -22 | -10 | -124 | 67 | -38 | -3 | 1 | - | 0 | - | - | - | -183 | 54 |
| Operating income (EBIT) | 893 | 952 | 1,729 | 2,017 | 70 | 116 | 911 | 1,253 | 2,126 | 2,424 | -190 | -179 | 5,539 | 6,583 |
| Operating margin (EBIT) | 14.1% | 14.7% | 16.5% | 18.3% | 2.8% | 5.2% | 15.5% | 19.3% | 17.4% | 17.5% | - | - | 15.0% | 16.6% |
| OPERATING CASH FLOW | ||||||||||||||
| SEK M | ||||||||||||||
| Operating income (EBIT) | 893 | 952 | 1,729 | 2,017 | 70 | 116 | 911 | 1,253 | 2,126 | 2,424 | -190 | -179 | 5,539 | 6,583 |
| Items affecting comparability1 | 22 | 10 | 124 | -67 | 38 | 3 | -1 | - | 0 | - | - | - | 183 | -54 |
| Depreciation and amortization | 352 | 261 | 328 | 450 | 124 | 102 | 271 | 263 | 503 | 473 | 12 | 15 | 1,590 | 1,563 |
| Net capital expenditure | -143 | -69 | -200 | -177 | -46 | 102 | -151 | -93 | -182 | -145 | -5 | -1 | -727 | -383 |
| Repayment of lease liabilities | -72 | -69 | -83 | -84 | -35 | -32 | -48 | -58 | -177 | -234 | -5 | -9 | -420 | -485 |
| Change in working capital | 783 | 507 | 221 | -107 | 455 | 148 | 209 | 557 | 331 | 250 | -73 | 253 | 1,927 | 1,608 |
| Operating cash flow by division | 1,836 | 1,591 | 2,120 | 2,032 | 605 | 439 | 1,191 | 1,923 | 2,601 | 2,768 | -261 | 79 | 8,092 | 8,832 |
| Other non-cash items | 0 | -25 | 0 | -25 | ||||||||||
| Interest paid and received | -778 | -797 | -778 | -797 | ||||||||||
| Operating cash flow | 7,315 | 8,010 |
| EMEIA Americas Asia Pacific Technologies Systems Other Total SEK M 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 24,214 24,447 37,867 44,213 9,133 8,200 22,930 23,955 46,570 49,347 - - 140,716 150,162 Sales, external 617 651 141 128 1,151 920 169 224 95 104 -2,173 -2,027 - - Sales, internal Sales 24,831 25,098 38,009 44,340 10,284 9,120 23,099 24,179 46,665 49,451 -2,173 -2,027 140,716 150,162 -2% 0% 6% 2% -2% -6% 9% -2% 1% -1% - - 3% -1% Organic growth 6% 1% 22% 16% 5% -3% 5% 7% 2% 7% - - 8% 8% Acquisitions and divestments 5% 0% 6% -1% 2% -2% 5% 0% 6% 0% - - 5% 0% Exchange-rate effects - - - - 7 22 11 12 - 11 - - 18 45 Share of earnings in associates EBIT, excl items affecting 3,388 3,552 7,186 8,207 662 619 3,996 4,224 7,807 8,493 -854 -799 22,185 24,296 comparability EBIT margin, excl items affecting 13.6% 14.2% 18.9% 18.5% 6.4% 6.8% 17.3% 17.5% 16.7% 17.2% - - 15.8% 16.2% comparability Items affecting comparability1 -551 -48 2,908 67 -27 -40 -2,492 - -133 - -104 - -400 -21 2,837 3,505 10,094 8,274 635 580 1,504 4,224 7,673 8,493 -958 -799 21,785 24,275 Operating income (EBIT) 11.4% 14.0% 26.6% 18.7% 6.2% 6.4% 6.5% 17.5% 16.4% 17.2% - - 15.5% 16.2% Operating margin (EBIT) OPERATING CASH FLOW SEK M 2,837 3,505 10,094 8,274 635 580 1,504 4,224 7,673 8,493 -958 -799 21,785 24,275 Operating income (EBIT) Items affecting comparability1 551 48 -2,908 -67 27 40 2,492 - 133 - 104 - 400 21 1,055 989 1,154 1,604 424 401 1,013 1,006 1,484 1,592 44 53 5,174 5,645 Depreciation and amortization -627 -434 -631 -740 -202 63 -378 -440 -576 -483 -6 -29 -2,419 -2,063 Net capital expenditure -276 -280 -255 -342 -129 -130 -188 -202 -675 -812 -21 -30 -1,543 -1,797 Repayment of lease liabilities Change in working capital 643 44 726 -1,148 457 45 -298 -3 2,352 1,228 -44 43 3,836 208 4,183 3,872 8,181 7,581 1,213 997 4,145 4,585 10,391 10,017 -881 -763 27,232 26,289 Operating cash flow by division 123 14 123 14 Other non-cash items -2,122 -3,251 -2,122 -3,251 Interest paid and received 25,232 23,052 Operating cash flow CAPITAL EMPLOYED SEK M Goodwill 13,232 14,552 32,382 36,524 5,379 5,582 18,989 21,504 22,891 28,711 - - 92,873 106,874 Other intangible assets 1,366 1,498 21,652 22,753 1,937 1,863 2,968 3,848 6,876 8,531 32 39 34,831 38,531 Property, plant and equipment 3,166 3,287 3,037 3,487 1,398 1,331 1,556 1,763 2,260 2,740 43 45 11,460 12,653 Right-of-use assets 976 831 1,598 1,606 295 309 553 768 1,858 2,671 17 110 5,296 6,295 2,120 2,256 2,875 3,636 1,324 1,399 1,827 2,136 3,830 3,180 84 412 12,060 13,019 Other capital employed Adjusted capital employed 20,860 22,423 61,544 68,006 10,332 10,485 25,891 30,018 37,715 45,833 177 607 156,520 177,373 Restructuring reserve -298 -60 -150 -22 -43 9 -89 74 -182 -35 -5 -5 -767 -39 Capital employed 20,562 22,363 61,395 67,984 10,289 10,494 25,802 30,093 37,533 45,798 172 602 155,753 177,333 Return on capital employed 14.8% 15.9% 16.3% 12.7% 5.8% 5.8% 15.2% 14.8% 20.3% 20.1% - - 15.6% 14.4% Average adjusted capital employed 22,872 22,353 44,025 64,462 11,396 10,656 26,295 28,510 38,502 42,249 - - 142,611 168,363 |
Jan-Dec and 31 Dec | Global | Entrance | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average number of employees | 12,188 | 12,212 | 13,358 | 17,889 | 7,099 | 6,758 | 7,895 | 8,651 | 16,028 | 17,035 | 276 | 279 | 56,845 | 62,825 |
1) Excluding items affecting comparability. Please see the section 'Items affecting comparability' on page 4 in the report for further details about the financial effects in 2024. For information about items affecting comparability in 2023, please see the Year-end report 2023, available on assaabloy.com
Financial information - Notes
NOTE 1 DISAGGREGATION OF REVENUE
| Sales by continent Q4 | EMEIA | Americas | Asia Pacific | Global Technologies |
Entrance Systems |
Other | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| Europe | 5,481 | 5,520 | 18 | 25 | 151 | 139 | 1,946 | 1,876 | 4,938 | 5,686 | -219 | -223 | 12,315 | 13,023 |
| North America | 154 | 178 | 9,461 | 9,929 | 458 | 524 | 2,439 | 3,042 | 6,377 | 7,016 | -101 | -139 | 18,788 | 20,551 |
| Central- and South America | 27 | 28 | 935 | 971 | 12 | 12 | 256 | 206 | 53 | 98 | -10 | -11 | 1,273 | 1,304 |
| Africa | 233 | 283 | 2 | 1 | 2 | 1 | 208 | 234 | 12 | 38 | -9 | -10 | 448 | 548 |
| Asia | 411 | 432 | 88 | 101 | 1,139 | 862 | 710 | 857 | 449 | 538 | -48 | -65 | 2,750 | 2,725 |
| Oceania | 33 | 41 | 4 | 6 | 706 | 678 | 325 | 279 | 360 | 462 | -32 | -40 | 1,396 | 1,424 |
| Total | 6,339 | 6,481 | 10,508 11,033 | 2,468 | 2,217 | 5,885 | 6,493 | 12,189 | 13,839 | -419 | -488 | 36,970 | 39,575 | |
| Sales by continent Jan-Dec | EMEIA | Global Entrance Americas |
Asia Pacific Technologies Systems Other |
|||||||||||
| Total | ||||||||||||||
| SEK M | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| Europe | 21,211 | 21,475 | 85 | 87 | 568 | 686 | 6,243 | 6,844 | 18,395 | 19,166 | -841 | -1,000 | 45,661 | 47,257 |
| North America | 691 | 681 | 34,201 | 39,951 | 2,436 | 2,122 | 11,089 | 11,377 | 25,136 | 26,765 | -871 | -541 | 72,682 | 80,354 |
| Central- and South America | 99 | 106 | 3,448 | 3,891 | 48 | 52 | 900 | 793 | 159 | 284 | -37 | -55 | 4,617 | 5,071 |
| Africa | 973 | 1,045 | 10 | 7 | 14 | 7 | 662 | 932 | 68 | 75 | -36 | -42 | 1,691 | 2,025 |
| Asia | 1,689 | 1,641 | 249 | 372 | 4,284 | 3,518 | 2,894 | 3,013 | 1,509 | 1,647 | -226 | -239 | 10,399 | 9,952 |
| Oceania | 168 | 150 | 17 | 32 | 2,934 | 2,736 | 1,310 | 1,221 | 1,399 | 1,514 | -162 | -150 | 5,666 | 5,503 |
| Total | 24,831 25,098 | 38,009 44,341 | 10,284 | 9,120 | 23,099 24,179 | 46,665 | 49,451 | -2,173 -2,027 | 140,716 | 150,162 | ||||
| Sales by product group Q4 | Global | Entrance | ||||||||||||
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| Mechanical locks, lock systems and fittings | 2,865 | 2,898 | 4,437 | 5,295 | 1,325 | 1,202 | 107 | 105 | 2 | 2 | -178 | -209 | 8,559 | 9,293 |
| Electromechanical and electronic locks | 2,135 | 2,262 | 2,472 | 2,779 | 487 | 423 | 5,733 | 6,369 | 349 | 313 | -169 | -201 | 11,007 | 11,944 |
| Security doors and hardware | 1,227 | 1,213 | 3,581 | 2,932 | 598 | 575 | 46 | 20 | 969 | 1,083 | -40 | -49 | 6,381 | 5,774 |
| Entrance automation | 111 | 108 | 18 | 27 | 57 | 17 | - | - | 10,868 | 12,441 | -31 | -29 | 11,023 | 12,564 |
| Total | 6,339 | 6,481 | 10,508 11,033 | 2,468 | 2,217 | 5,885 | 6,493 | 12,189 | 13,839 | -419 | -488 | 36,970 | 39,575 | |
| Sales by product group Jan-Dec | Global | Entrance | ||||||||||||
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| Mechanical locks, lock systems and fittings Electromechanical and electronic locks |
11,653 8,002 |
11,518 8,401 |
15,691 9,281 |
21,769 10,740 |
5,286 2,193 |
5,135 1,636 |
416 22,510 |
443 23,708 |
9 1,304 |
7 1,231 |
-780 -1,128 |
-874 -853 |
32,275 42,161 |
37,999 44,864 |
Security doors and hardware 4,722 4,774 12,953 11,718 2,606 2,257 173 28 3,984 4,359 -150 -182 24,288 22,955 Entrance automation 454 405 84 113 200 92 - - 41,369 43,852 -114 -119 41,992 44,344 Total 24,831 25,098 38,009 44,340 10,284 9,120 23,099 24,179 46,665 49,451 -2,173 -2,027 140,716 150,162
NOTE 2 BUSINESS COMBINATIONS
Consolidated acquisitions 2024
| Number of | Approx. | Month of | |||
|---|---|---|---|---|---|
| Acquisition | Division | Country | employees | sales in 2023 | consolidation |
| Integrated Warehouse Solutions (IWS) | Entrance systems | USA | 550 | 1,850 | 2024-01 |
| Cemoel | Global technologies Spain | 60 | 70 | 2024-02 | |
| Kadex | Global technologies Netherlands | <50 | 50 | 2024-03 | |
| Axxess Industries | Global technologies Canada | <50 | <50 | 2024-04 | |
| Industrial door | Entrance systems | USA | <50 | 90 | 2024-04 |
| Messerschmitt Systems | Global technologies Germany | 100 | 130 | 2024-04 | |
| Nomadix & Global reach | Global technologies USA | 120 | 300 | 2024-04 | |
| Spaltabdichtung | Entrance systems | Germany | <50 | <50 | 2024-04 |
| Amecor | EMEIA | South Africa | 120 | 150 | 2024-05 |
| Vizzia | Global technologies USA | <50 | 90 | 2024-06 | |
| Wesko Locks | Americas | Canada | 70 | 170 | 2024-06 |
| G-Mac | Entrance systems | USA | <50 | <50 | 2024-07 |
| Cole Kepro | Americas | USA | 65 | 160 | 2024-08 |
| Elite Entrances | Entrance systems | USA | <50 | 80 | 2024-08 |
| Modern | Entrance systems | USA | <50 | 60 | 2024-08 |
| Sewio | Global technologies Czech Republic | <50 | <50 | 2024-08 | |
| Level Lock | Americas | USA | 70 | 170 | 2024-09 |
| Skidata | Entrance systems | Austria | 1,280 | 3,500 | 2024-09 |
| Beyron Door | Entrance systems | Sweden | <50 | 60 | 2024-10 |
| Ixla | Global technologies Italy | 50 | 150 | 2024-11 | |
| Lawrence Doors | Entrance systems | USA | 120 | 320 | 2024-11 |
| Premier Steel Doors and Frames | Americas | USA | 90 | 420 | 2024-11 |
| 9Solutions | Global technologies Finland | <50 | 110 | 2024-12 | |
| Door team | Entrance systems | Finland | <50 | <50 | 2024-12 |
| Roger | EMEIA | Poland | 100 | 110 | 2024-12 |
| Norshield Security Products | Americas | USA | 70 | 170 | 2024-12 |
Financial information - Notes
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| Amounts recognized in the group, SEK M | 2023 | 2024 | 2023 | 2024 |
| Purchase prices | ||||
| Cash paid for acquisitions during the year | 1,587 | 3,021 | 54,292 | 12,796 |
| Holdbacks and deferred considerations for acquisitions during the year | 181 | 295 | 508 | 678 |
| Adjustment of purchase prices for acquisitions in prior years | 1 | 3 | 10 | -517 |
| Total | 1,769 | 3,319 | 54,810 | 12,957 |
| Acquired assets and liabilities at fair value | ||||
| Intangible assets | 22,491 | 199 | 24,422 | 2,662 |
| Property, plant and equipment and right-of-use assets | -115 | 369 | 2,647 | 1,093 |
| Other non-current assets | 253 | -47 | 494 | 276 |
| Inventories | 69 | 243 | 4,098 | 1,420 |
| Current receivables and investments | -157 | 42 | 2,305 | 1,556 |
| Cash and cash equivalents | 148 | 152 | 1,175 | 532 |
| Non-current liabilities | -526 | -319 | -2,445 | -1,312 |
| Current liabilities | -178 | -207 | -3,350 | -1,686 |
| Total | 21,984 | 432 | 29,346 | 4,541 |
| Non-controlling interest in acquired businesses | - | 27 | - | 27 |
| Goodwill | -20,215 | 2,914 | 25,464 | 8,443 |
| Change in cash and cash equivalents due to acquisitions | ||||
| Cash paid for acquisitions during the year | 1,587 | 3,021 | 54,292 | 12,796 |
| Cash and cash equivalents in acquired subsidiaries | -148 | -152 | -1,175 | -532 |
| Paid considerations for acquisitions in prior years | 114 | 126 | 449 | -127 |
| Total | 1,553 | 2,995 | 53,566 | 12,136 |
The acquisition analyses for acquisitions made during the last 12 months are preliminary and will be concluded within one year of the acquisition date.
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table. During the year, some of the analyzes of acquisitions closed during 2023 have been completed, including Hardware and Home Improvement (HHI) which was acquired in June last year.
NOTE 3 FAIR VALUE AND CARRYING AMOUNT ON FINANCIAL ASSETS AND LIABILITIES
| 31 December 2024 | Financial instruments at fair value |
||||
|---|---|---|---|---|---|
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 Level 2 |
Level 3 | |
| Financial assets | |||||
| Financial assets at amortized cost | 28,345 | 28,345 | |||
| Financial assets at fair value through profit and loss | 325 | 325 | |||
| Derivatives - hedge accounting | 316 | 316 | 316 | ||
| Derivatives - held for trading | 103 | 103 | 103 | ||
| Total financial assets | 29,090 | 29,090 | - 419 |
- | |
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 79,541 | 79,535 | |||
| Financial liabilities at fair value through profit and loss | 1,362 | 1,362 | 1,362 | ||
| Lease liabilities | 6,554 | 6,554 | |||
| Derivatives - hedge accounting | 221 | 221 | 221 | ||
| Derivatives - held for trading | 224 | 224 | 224 | ||
| Total financial liabilities | 87,903 | 87,897 | - 445 |
1,362 |
| 31 December 2023 | Fair | Financial instruments at fair value |
|||
|---|---|---|---|---|---|
| Carrying | |||||
| SEK M | amount | value | Level 1 | Level 2 | Level 3 |
| Financial assets | |||||
| Financial assets at amortized cost | 22,934 | 22,934 | |||
| Financial assets at fair value through profit and loss | 115 | 115 | |||
| Derivatives - hedge accounting | 633 | 633 | 633 | ||
| Derivative instruments - hedge accounting | 293 | 293 | 293 | ||
| Total financial assets | 23,975 | 23,975 | - | 926 | - |
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 71,071 | 70,310 | |||
| Financial liabilities at fair value through profit and loss | 1,045 | 1,045 | 1,045 | ||
| Lease liabilities | 5,443 | 5,443 | |||
| Derivatives - hedge accounting | 161 | 161 | 161 | ||
| Derivatives - held for trading | 170 | 170 | 170 | ||
| Total financial liabilities | 77,890 | 77,129 | - | 331 | 1,045 |
Financial liabilities at fair value through profit and loss pertains to deferred Deferred considerations are initially measured on the day of acquisition considerations, i.e. additional payments for acquired companies. The size of a based on management's best estimate regarding future outcomes and deferred consideration is usually linked to the earnings and sales performance belong to level 3 in the hierarchy. in an acquired company during a specific period of time.
Financial information - Parent company
| EXTRACT FROM INCOME STATEMENT | Year | Jan-Dec | |
|---|---|---|---|
| SEK M | 2023 2023 |
2024 | |
| Operating income | 2,951 2,951 |
2,138 | |
| Income before appropriations and tax | 2,809 2,809 |
6,520 | |
| Net income for the period | 3,365 3,365 |
7,548 | |
| EXTRACT FROM BALANCE SHEET | 31 Dec 31 Dec |
||
| SEK M | 2023 2023 |
2024 | |
| Non-current assets | 52,722 52,722 |
54,165 | |
| Current assets | 40,730 40,730 |
45,662 | |
| Total assets | 93,452 93,452 |
99,827 | |
| Equity | 25,130 25,130 |
26,661 | |
| Untaxed reserves | 1,021 1,021 |
818 | |
| Non-current liabilities | 35,550 35,550 |
39,129 | |
| Current liabilities | 31,751 31,751 |
33,219 | |
| Total equity and liabilities | 93,452 93,452 |
99,827 |
Definitions of financial performance measures
Change in sales for comparable units after adjustments for Average capital employed excluding restructuring reserves acquisitions, divestments and exchange rate effects. for the last twelve months.
Operating margin (EBITDA) Net debt
Operating income before depreciation and amortization as a Interest-bearing liabilities less interest-bearing assets. percentage of sales. See the table on net debt for detailed information.
Operating margin (EBITA) Net debt/EBITDA
Operating income before amortization of intangible assets Net debt at the end of the period in relation to EBITDA for recognized in business combinations, as a percentage of sales. the last twelve months.
Operating margin (EBIT) Net debt/Equity ratio Operating income as a percentage of sales. Net debt in relation to equity.
Profit margin (EBT) Equity ratio
Items affecting comparability Shareholders' equity per share
Restructuring costs and significant non-recurring operating expenses Equity excluding non-controlling interests in relation to such as revaluation of previously owned shares in associates, number of outstanding shares after any potential dilution. revaluation of inventory in business combinations and goodwill impairment.
Cash Flow from operating activities excluding restructuring Comparability, for the last twelve months as a percentage of payments and tax paid on income minus net capital expenditure average adjusted capital employed. and repayment of lease liabilities.
Operating cash flow in relation to income before tax excluding for the last twelve months as a percentage of average equity items affecting comparability. attributable to parent company's shareholders for the
Net capital expenditure
Investments in, less disposals of, intangible assets and Earnings per share before and after dilution
Depreciation, amortization and impairment of intangible assets, are expected to result in significant dilution in the future. property, plant and equipment and right-of-use assets.
Total assets less interest-bearing assets and non-interest- Net income attributable to parent company's shareholders
Organic growth Average adjusted capital employed
Income before tax as a percentage of sales. Shareholders' equity as a percentage of total assets.
Return on capital employed
Operating cash flow Operating Income (EBIT), excluding Items Affecting
Return on equity
Cash conversion Net income attributable to parent company's shareholders same period.
property, plant and equipment. Net income attributable to parent company's shareholders divided by weighted average number of outstanding shares. Depreciation and amortization None of the Group's outstanding long-term incentive programs
Earnings per share before and after dilution and excluding Capital employed items affecting comparability
bearing liabilities including deferred tax liability. excluding items affecting comparability, net of tax, divided by weighted average number of outstanding shares. None of the Group's outstanding long-term incentive programs are expected to result in significant dilution in the future.
Information on how these performance measures have been calculated can be found on the company's website www.asssaabloy.com. To check the calculations of the financial measurements for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company's Annual Report. The Annual Reports for the years 1994 to 2023 appear on the company's website.