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Loomis Interim / Quarterly Report 2024
2940_10-q_2024-05-06_aec831c7-2c58-47f9-8a13-cdb5f156bbcf.pdf
Interim / Quarterly Report
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Continued strong growth and solid US margins
Comments on quarter 1
- Revenue for the first quarter was SEK 7,253 million (6,812). Revenue grew by 6.5 percent (21.1) of which organic growth was 6.3 percent (11.7) and acquisitions contributed with 2.9 percent (0.4). Exchange rate effects on revenue was –2.7 percent (9.0).
- Operating income (EBITA) for the quarter was SEK 754 million (717). The operating margin (EBITA) was 10.4 percent (10.5).
- Operating income (EBIT) before items affecting comparability for the quarter was SEK 710 million (667) and operating margin (EBIT) before items affecting comparability was 9.8 percent (9.8).
- Net financial expenses for the quarter were SEK –188 million (–113).
- Income before taxes for the quarter was SEK 507 million (543) and net income was SEK 359 million (403).
- Earnings per share before dilution for the quarter were SEK 5.06 (5.64) and after dilution were 5.05 (5.64).
- Cash flow from operating activities amounted to SEK 402 million (719) in the quarter, equivalent to 53 percent (100) of operating income (EBITA). The cash flow was partially impacted by a temporary build-up of foreign currency stock over the quarter end.
- Loomis AB repurchased 700,000 own shares between February 5 and April 5, 2024, of which 643,592 were repurchased in the first quarter.
KEY RATIOS
| 2024 | 2023 | 2023 | ||
|---|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | Change (%) | Full year |
| Revenue | 7,253 | 6,812 | 6.5 | 28,707 |
| Of which: | ||||
| Organic growth | 430 | 657 | 6.3 | 1.966 |
| Acquisitions and divestments | 198 | 22 | 2.9 | 314 |
| Exchange rate effects | –187 | 505 | –2.7 | 1,111 |
| Total growth | 441 | 1,185 | 3,392 | |
| Operating income (EBITA) | 754 | 717 | 3,077 | |
| Operating margin (EBITA), % | 10.4 | 10.5 | 10.7 | |
| Operating income (EBIT) before items affecting comparability | 710 | 667 | 2,888 | |
| Operating margin (EBIT) before items affecting comparability, % | 9.8 | 9.8 | 10.1 | |
| Income before tax | 507 | 543 | 2,148 | |
| Profit for the period | 359 | 403 | 1,495 | |
| Earnings per share before dilution, SEK | 5.06 | 5.64 | 21.00 | |
| Tax rate, % | 29 | 26 | 30 | |
| Cash flow from operating activities | 402 | 719 | 3,091 | |
| Cash flow from operating activities as % of operating income (EBITA) | 53 | 100 | 100 |
Explanation and reconciliation of alternative performance measures can be found on pages 21–22 of this report and under Definitions on page 23.
Strong US performance and actions in Europe underway
Loomis delivered a strong start to the year with an organic revenue growth of 6.3 percent in the first quarter. Both the US and Europe and Latin America contributed to the development, and we substantially increased our revenues within Automated Solutions. The US segment had a strong performance in the quarter with solid growth and structured work on scalability. The overall business in Europe and Latin America had a more challenging start to the year, and actions are underway for margin recovery. The operating cash flow for the quarter was impacted by a temporary build-up of stock in foreign currency. However, the operating cash flow in relation to operating income (EBI-TA) for the rolling twelve months was a strong 89 percent.
Strong performance in the US
Segment USA had a strong performance in the first quarter. Revenues reached SEK 3,801 million (3,598) and an organic growth of 5.8 percent with solid growth across most business lines. The segment achieved record revenue and operating income (EBITA) in local currency during the first quarter. We are well-positioned in this growing market, and notably our Automated Solutions with SafePoint had a strong performance which was margin accretive. The team continued to execute on their plan to improve operational efficiencies and increase productivity which together with the volume growth led to an increased operating result (EBITA) of SEK 573 million (500). The operating margin (EBITA) increased sharply to 15.1 percent (13.9).
Mixed performance due to cyclical headwinds in Europe
Segment Europe and Latin America reached revenues of SEK 3,471 million (3,250) with an organic growth of 6.3 percent in the quarter. Most business lines contributed to the growth, however the International business line continued to have a cyclical decline due to the current macroeconomic environment. The operating profit (EBITA) amounted to SEK 304 million (309), corresponding to a margin of 8.8 percent (9.5). This level is not in line with our expectations and recovering the margin in Europe and Latin America is a clear priority during the remainder of 2024. While some structural actions have been initiated, more will be executed throughout the year to improve the performance.
Continued growth in Loomis Pay
Loomis Pay had a solid performance in the quarter with an organic growth of 126 percent compared to the previous year. The transaction volumes grew 89 percent in the first quarter compared to the previous year and reached SEK 1,275 million.
A highlight of the quarter was definitely our acquisition of Hosteltáctil. Hosteltáctil has a vast know-how of our targeted verticals that we can utilize to accelerate our growth journey in Spain. Combining Hosteltáctil's POS and merchant network together with our payment gateway enables us to approach both a broader customer base and specifically the small business segment in Spain.
Sustainability progress
I am also pleased to see that our sustainability metrics are trending in the right direction, and we are exceeding the targets set out for the strategic period ending this year. In parallel, we continue to gradually raise our ambitions within all parts of sustainability. Work is ongoing to prepare the organization for the Corporate Sustainability Reporting Directive and to set ambitious initiatives and targets for the next strategic period.
Inaugural investment grade credit rating of BBB
In April we obtained a BBB investment grade credit rating with stable outlook from S&P Global Ratings. I am proud that our fundamentally strong cash generation and financial position has been recognized with this rating. This rating provides us with additional flexibility in the financial markets going forward.
All in all, Loomis delivered a solid first quarter despite the current global cyclical headwinds and communicated structural challenges in Europe and Latin America. I would like to thank our coworkers for their commitment and our customers for their trust in us.
Stockholm, May 6, 2024
Aritz Larrea President and CEO
Revenue and Profitability
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | R12 | Full year |
| Revenue | 7,253 | 6,812 | 29,148 | 28,707 |
| Revenue growth, % | 6.5 | 21.1 | 10.0 | 13.4 |
| – of which organic growth, % | 6.3 | 11.7 | 6.6 | 7.8 |
| – of which acquisitions / divestments, % | 2.9 | 0.4 | 1.8 | 1.2 |
| – of which exchange rate effects, % | –2.7* | 9.0 | 1.6 | 4.4 |
| Operating income (EBITA) | 754 | 717 | 3,115 | 3,077 |
| Operating margin (EBITA), % | 10.4 | 10.5 | 10.7 | 10.7 |
* Adjusted for the effect of the devaluation of the Argentinean peso, which was moved to items affecting comparability in Q4 2023, the exchange rate effect would have been approximately 0.3 percent less.
Q1 Highlights
- Solid growth across all three segments and most business lines
- Strong performance within Automated Solutions recurring revenue growth and successful integration of CIMA
- Mixed performance exceptional results in the US and below expectations in Europe
Comments on quarter 1 2024
Revenue for the quarter increased to SEK 7,253 million (6,812) with an organic growth of 6.3 percent. All three segments contributed to the growth. Most business lines grew compared to the previous year, except for International where revenues declined due to cyclical reasons. Automated solutions, including SafePoint, showed high growth with both a strong organic performance in the US as well as a successful integration of CIMA in Europe and Latin America.
The operating income (EBITA) amounted to SEK 754 million (717) , corresponding to a margin of 10.4 percent (10.5). The exchange rate effect on operating income during the quarter was approximately SEK –31 million (58).
Items affecting comparability amounted to SEK –15 million (–12) related to the ongoing restructuring plans within segment Europe and Latin America. The operating income (EBIT) before items affecting comparability for the period amounted to SEK 710 million (667).
Net financial expenses increased to SEK –188 million (–113) in the quarter, mainly due to higher interest rates. A loss on monetary net assets in hyperinflation economies also had an impact on net financial expenses.
Income before tax amounted to SEK 507 million (543). The tax expense for the quarter was SEK –148 million (–140), which represents a tax rate of 29 percent (26).
Earnings per share before dilution and after dilution amounted to 5.06 (5.64) and 5.05 (5.64) respectively.
Revenue, SEKm and operating margin (EBITA), % Revenue bridge, growth per business line (SEK m)
Segment Europe and Latin America
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | R12 | Full year |
| Revenue | 3,471 | 3,250 | 14,046 | 13,826 |
| Revenue growth, % | 6.8 | 16.2 | 10.5 | 12.8 |
| – of which organic growth, % | 6.3 | 10.9 | 6.1 | 7.1 |
| – of which acquisitions / divestments, % | 5.8 | – | 2.9 | 1.5 |
| – of which exchange rate effects, % | –5.3* | 5.3 | 1.5 | 4.2 |
| Operating income (EBITA) | 304 | 309 | 1,398 | 1,403 |
| Operating margin (EBITA), % | 8.8 | 9.5 | 10.0 | 10.1 |
* Adjusted for the effect of the devaluation of the Argentinean peso, which was moved to items affecting comparability in Q4 2023, the exchange rate effect would have been approximately 0.7 percent less.
Q1 Highlights
- Organic growth of 6.3 percent, mainly driven by price increases and emerging markets e.g. Latin America and Turkey
- Strong performance within Automated Solutions with the integration of CIMA
- Restructuring plans underway but more to execute
Comments on quarter 1 2024
Segment Europe and Latin America reached revenues of SEK 3,471 million (3,250) with an organic growth of 6.3 percent. Most business lines contributed to the growth, however the International business line continued to have a cyclical decline due to the current macroeconomic environment. While price increases had a positive impact on revenues, the expected price increases have not been implemented to the full extent.
The operating profit (EBITA) amounted to SEK 304 million (309), corresponding to a margin of 8.8 percent (9.5). The cyclical downturn of the international and gold trading businesses together with higher stock financing costs in the current interest rate environment have had a negative impact on the margins. The quarterly comparison is also slightly negatively affected by fewer working days in the first quarter 2024, partly due to the timing of Easter. As communicated previously, there are also structural challenges within the segment, where we have started to implement actions.
Costs related to the announced restructuring plan amounted to SEK –15 million (–12) in the quarter.
Revenue, SEKm and operating margin (EBITA), % Revenue bridge, growth per business line (SEK m)
Segment USA
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | R12 | Full year |
| Revenue | 3,801 | 3,598 | 15,180 | 13,826 |
| Revenue growth, % | 5.5 | 25.7 | 8.8 | 13.4 |
| – of which organic growth, % | 5.8 | 12.5 | 6.4 | 7.9 |
| – of which acquisitions / divestments, % | 0.3 | 0.8 | 0.8 | 1.0 |
| – of which exchange rate effects, % | –0.5 | 12.5 | 1.6 | 4.5 |
| Operating income (EBITA) | 573 | 500 | 2,213 | 1,403 |
| Operating margin (EBITA), % | 15.1 | 13.9 | 14.6 | 10.1 |
Q1 Highlights
- Solid organic growth, driven by both higher volumes and price increases
- High increase in operating margin (EBITA)
- Double-digit growth for Automated Solutions
Comments on quarter 1 2024
Segment USA achieved record revenue and operating income (EBITA) in local currency during the first quarter. Revenue increased to SEK 3,801 million (3,598) with growth across all business lines except for International which was slightly down year over year. Notably our Automated Solutions continued to have a strong performance.
The operating income (EBITA) increased to SEK 573 million (500) with a margin of 15.1 percent (13.9). The high volume and revenue growth together with the continued structured work on operational efficiencies were positive drivers to the increase in operating margin compared to the previous year. An improved employee retention rate and a favorable job market contributed positively to the margin.
Revenue, SEKm and operating margin (EBITA), % Revenue bridge, growth per business line (SEK m)
Segment Loomis Pay
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | R12 | Full year |
| Revenue | 16 | 7 | 60 | 52 |
| Revenue growth, % | 126.2 | 129.7 | 137.5 | 92.4 |
| – of which organic growth, % | 125.7 | 123.7 | 135.7 | 86.2 |
| – of which acquisitions / divestments, % | – | – | – | – |
| – of which exchange rate effects, % | 0.5 | 6.0 | 1.8 | 6.1 |
| Operating income (EBITA) | –55 | –54 | –220 | –218 |
| Transaction volumes | 1,275 | 673 | 4,954 | 4,353 |
Q1 Highlights
- Strong growth across all three markets
- Acquisition of Hosteltáctil
Comments on quarter 1 2024
Revenue amounted to SEK 16 million (7) in the first quarter, with a strong organic growth of 125.7 percent compared to the previous year. Revenue grew in all three markets. The sequential development compared to the fourth quarter, was also solid considering that the first quarter is weaker from a seasonality perspective.
Transaction volumes in the quarter grew 89 percent compared to the previous year and reached SEK 1,275 million in the quarter.
The operating income (EBITA) amounted to SEK –55 million (–54).
Acquisitions
During the quarter Loomis acquired Hosteltáctil (Electronic Dreams S.L.) in Spain. The acquisition is in line with Loomis' communicated ambitions to add complementary digital solutions to the product offering and expand the market presence in Spain, a market with strong potential for Loomis' digital solutions. Read more in Note 5.
Revenue, SEK m Transaction volumes, SEK m
Sustainability
Loomis plays an important role in ensuring efficient and sustainable payment flows in society.
Loomis has a vision of a society where everyone has access to payment infrastructure and can choose their preferred payment method. Equal access to cash and payments is an increasingly important issue globally and with the current geopolitical climate there are more discussions around the world on the importance of access to all types of payments, including the ability to pay with cash.
Loomis is part of the infrastructure that is critical for society and helps to promote social sustainability. This in turn requires Loomis to take long-term responsibility for not only for its business but also the impact of its operations on society, people, and the environment.
Successful reduction in injury frequency rate
Keeping our employees safe and minimizing the risk of injuries is one of our most important responsibilities. In 2023 a special working group formed at the Group level was tasked with taking a comprehensive approach and finding ways to reduce workplace injuries globally throughout the organization. These initiatives are having an impact, where both the number of injuries and lost time injury frequency rate are trending in the right direction.
Reducing our climate impact
Even with a strong organic growth, Loomis continues to decrease its carbon emissions from fuel consumption and energy usage in absolute terms. The investments in both a lighter and electrified
fleet, smarter route planning systems and technology have contributed to emission reductions. These initiatives have subsequently resulted in improved logistics while also reducing our fuel consumption, which is also beneficial from a cost perspective.
Innovative solutions for the vehicle fleet
There are challenges involved with electrification of Loomis' operating vehicle fleet. Strict safety standards, different safety regulations in different markets and the need for heavy armored vehicles sometimes make it more difficult to implement a broad rollout of lighter electric vehicles. It is particularly challenging logistically to plan charging stops for electric vehicles without compromising the safety of drivers and valuables. Our roll out of EVs continues where possible and is complemented by other alternatives to reducing our emissions. One such initiative has been a pilot of switching from diesel to biodiesel (HVO) for the armored vehicles in France. Loomis is also working with suppliers to introduce lighter vehicles with even higher security features.
Reaching our targets
While Loomis sustainability performance metrics are trending above the set targets for the strategic period ending this year, Loomis continues to gradually raise the ambitions. Work is ongoing to prepare the organization for the Corporate Sustainability Reporting Directive and to set the initiatives and targets for the next strategic period. Loomis' current targets are explained on page 25 and also in the Annual and Sustainability Report 2023.
Scope 1 & 2 emissions and revenues tCO2e (LHS) and SEK m (RHS)
2022 2023 2024
Lost time injury frequency rate (LTIFR) Injuries resulting in lost workdays per million worked hours
Cash flow and investments
January – March 2024
Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 402 million (719) and was impacted by a temporary build-up of stock in foreign currency over the quarter end of approximately SEK 190 million. The cash flow was equivalent to 53 percent (100) of operating income (EBITA). Excluding the temporary build-up, the cash conversion ratio would have been 78 percent.
Net investments in fixed assets for the period amounted to SEK –419 million (–359), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 410 million (357). Investments made during the period were mainly in buildings, vehicles, machinery and equipment and corresponds to 5.8 percent (5.3) of revenues. Investments in relation to depreciation (including IFRS 16) for the period amounted to 0.6 (0.6).
Capital employed and financial position
Capital employed
The total capital employed as of March 31, 2024 amounted to SEK 23,828 million (22,531 as of December 31, 2023), which is equivalent to approximately 82 percent (76) of revenue. Return on capital employed amounted to 14.2 percent (15.1).
Shareholders' equity and financing
Shareholders' equity increased in the quarter by SEK 854 million, amounting to SEK 13,533 million as of March 31, 2024 (12,678 as of December 31, 2023). The increase is largely explained by translation differences of SEK 631 million, net profit for the period of SEK 359 million and share repurchase of SEK 183 million. The return on shareholders' equity was 11.1 percent (14.0) and the equity ratio was 35.2 percent (37.2).
Net debt amounted to SEK 10,295 million as of March 31, 2024 (9,853 as of December 31, 2023) and net debt/EBITDA amounted to 1.75 (1.72 as of December 31, 2023).
As of March 31, 2024 the long-term loan facilities totaled SEK 10.3 billion and the short-term loan facilities totaled SEK 1.4 billion. Unutilized loan facilities amounted to SEK 5.1 billion, of which SEK 0.6 billion are used as back-up for outstanding commercial papers. Available liquid funds amounted to SEK 2.5 billion (see Note 7).
Employees
The number of full-time equivalent employees as of March 31, 2024 was 25,100 (24,500).
Other events
Significant events during the period
Loomis AB has through the repurchase program that was resolved and communicated on January 31, 2024 repurchased 700,000 shares. Loomis AB's holding of own shares thereby amounts to 4,908,782 shares, corresponding to 6.52 percent of the outstanding shares in the company.
On March 6, 2024 it was announced that Loomis AB has, through its wholly owned subsidiary Loomis Digital Solutions AB, acquired 100 percent of Electronic Dreams S.L. ("Hosteltáctil"). The acquisition is in line with Loomis' communicated ambitions to add complementary digital solutions to the product offering and expand the market presence in Spain, a market with strong potential for Loomis' digital solutions. The business will be reported within the Loomis Pay segment.
As previously disclosed, in 2018 a competitor filed a lawsuit against Loomis AB's subsidiary in Denmark relating to alleged competition law infringements in the Danish market. The lawsuit relates to practices applied and agreements entered into between 2014 and 2016. In 2021, a Danish court issued a ruling that went against Loomis. Loomis appealed the ruling since the company is of the firm opinion that Loomis has acted in compliance with relevant laws. On March 22, 2024 it was announced that the court of appeal dismissed Loomis' appeal. The court has in its decision not considered the question of damages, which will be addressed in a separate process. The competitor's total claim is approx. DKK 228 million plus interest. Loomis' assessment is that the competitor does not have grounds for the size of these claims.
Events after the end of the period
In April, Loomis AB obtained an inaugural investment grade credit rating of BBB with stable outlook from S&P Global Ratings. The rating reflects Loomis' market leading position, organic growth, solid margins, and strong cash flow conversion. Loomis is fully committed to maintaining an investment grade credit profile, with the rating supporting the Company's financing strategy going forwards.
Financial reports
CONSOLIDATED INCOME STATEMENT
| SEK m Quarter 1 Quarter 1 R12 Full year Revenue 3,4 7,253 6,812 29,148 28,707 Production expenses –5,311 –5,006 –21,718 –21,414 Gross income 1,942 1,806 7,429 7,293 Selling and administration expenses –1,230 –1,123 –4,475 –4,369 Other income and expenses –2 –15 –23 –36 Items affecting comparability 6 –15 –12 –132 –128 Operating income (EBIT) 695 656 2,799 2,759 Financial income 33 35 143 146 Financial expenses –191 –125 –730 –664 Loss on monetary net assets/liabilities –30 –23 –100 –93 Income before taxes 507 543 2,112 2,148 Income tax –148 –140 –662 –654 Net income for the period 1) 359 403 1,450 1,495 Other comprehensive income Items that will not be reclassified to the statement of income Actuarial gains and losses, net of tax 34 – –33 –68 Items that may be reclassified to the statement of income Translation differences 631 90 479 –61 Revaluation of participation in associated companies – –63 – –63 Other comprehensive income and expenses for the period, net after tax 665 28 446 –191 Total comprehensive income and expenses for the period2) 1,024 431 1,896 1,303 Earnings per share, SEK Earnings per share before dilution 5.06 5.64 20.42 21.00 Earnings per share after dilution 5.05 5.64 20.37 20.96 Number of shares Number of outstanding shares (million) 70.4 71.1 70.4 71.1 Average number of outstanding shares before dilution (million) 70.8 71.4 71.0 71.2 Average number of outstanding shares after dilution (million) 71.5 71.5 71.2 71.3 |
Note | 2024 | 2023 | 2024 | 2023 |
|---|---|---|---|---|---|
1) Net income for the period is entirely attributable to the owners of the Parent company.
2) Comprehensive income is entirely attributable to the owners of the Parent company.
CONSOLIDATED BALANCE SHEET
| Note | 2024 | 2023 | 2023 |
|---|---|---|---|
| SEK m | Mar 31 | Mar 31 | Dec 31 |
| ASSETS | |||
| Fixed assets | |||
| Goodwill | 9,454 | 8,302 | 9,033 |
| Intangible assets | 1,670 | 1,082 | 1,655 |
| Buildings and land | 1,129 | 1,143 | 1,089 |
| Machinery and equipment | 5,442 | 5,098 | 5,180 |
| Right-of-use assets | 4,924 | 3,822 | 4,634 |
| Contract assets | 349 | 255 | 297 |
| Deferred tax assets | 414 | 364 | 360 |
| Pension plan assets | 314 | 259 | 258 |
| Interest-bearing financial fixed assets | 219 | 785 | 231 |
| Other long-term receivables | 414 | 328 | 381 |
| Total fixed assets | 24,330 | 21,438 | 23,119 |
| Current assets | |||
| Inventory | 540 | 92 | 509 |
| Accounts receivable | 3,627 | 3,343 | 3,378 |
| Other current receivables | 338 | 244 | 322 |
| Current tax assets | 196 | 262 | 184 |
| Prepaid expenses and accrued income | 1,517 | 1,336 | 960 |
| Interest-bearing financial current assets | 1 | 17 | 98 |
| Liquid funds 7 |
7,884 | 7,412 | 7,611 |
| Total current assets | 14,102 | 12,706 | 13,062 |
| TOTAL ASSETS | 38,432 | 34,143 | 36,180 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity 9 |
|||
| Share capital | 376 | 376 | 376 |
| Other capital contributed | 4,594 | 4,594 | 4,594 |
| Other reserves | 2,285 | 2,012 | 971 |
| Retained earnings including net income for the year | 6,277 | 5,713 | 6,737 |
| Total shareholders' equity | 13,533 | 12,696 | 12,678 |
| Long-term liabilities | |||
| Interest-bearing non-current lease liabilities | 4,074 | 3,045 | 3,803 |
| Loans payable | 6,324 | 5,045 | 7,017 |
| Deferred tax liabilities | 493 | 437 | 515 |
| Provisions for claims reserves | 655 | 486 | 596 |
| Provisions for pensions and similar commitments | 648 | 563 | 629 |
| Other provisions | 136 | 126 | 128 |
| Other long-term liabilities | 290 | 207 | 221 |
| Total long-term liabilities | 12,621 | 9,909 | 12,910 |
| Current liabilities | |||
| Interest-bearing current lease liabilities | 1,126 | 904 | 1,051 |
| Loans payable | 1,199 | 1,812 | 431 |
| Accounts payable | 974 | 1,036 | 860 |
| Provisions for claims reserves | 338 | 310 | 304 |
| Current tax liabilities | 351 | 358 | 185 |
| Liabilities, cash processing operations | 5,058 | 4,312 | 5,016 |
| Accrued expenses and prepaid income | 2,233 | 1,962 | 1,952 |
| Other provisions | 45 | 53 | 39 |
| Other current liabilities | 955 | 793 | 754 |
| Total current liabilities | 12,278 | 11,539 | 10,591 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 38,432 | 34,143 | 36,180 |
CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | Full year |
| Opening balance | 12,678 | 12,465 | 12,465 |
| Actuarial gains and losses after tax | 34 | – | –68 |
| Exchange rate differences | 631 | 90 | –61 |
| Revaluation of participation in associated companies | – | –63 | –63 |
| Hedging of net investments, net of tax | – | – | – |
| Total other comprehensive income | 665 | 28 | –191 |
| Net income for the period | 359 | 403 | 1,495 |
| Total comprehensive income1) | 1,024 | 431 | 1,303 |
| Dividend paid to Parent Company's shareholders | – | – | –853 |
| Share-related remuneration | 13 | – | –37 |
| Acquisition of own shares | –183 | –200 | –200 |
| Closing balance | 13,533 | 12,696 | 12,678 |
1) Total comprehensive income is entirely attributable to the owners of the Parent company.
CONSOLIDATED STATEMENT OF CASH FLOWS
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m Note |
Quarter 1 | Quarter 1 | Full year |
| Operations | |||
| Income before taxes | 507 | 543 | 2,148 |
| Depreciation and amortization | 743 | 639 | 2,822 |
| Other items not affecting cash flow | 189 | 129 | 749 |
| Financial items received | 70 | 27 | 136 |
| Financial items paid | –189 | –112 | –626 |
| Income tax paid | –88 | 22 | –622 |
| Change in accounts receivable | –96 | –17 | 17 |
| Change in other operating capital employed and other items | –220 | 48 | 454 |
| Cash flow from operations | 915 | 1,279 | 5,077 |
| Investing activities | |||
| Investments in fixed assets | –423 | –362 | –1,957 |
| Disposals of fixed assets | 5 | 1 | 1 |
| Acquisitions of operations | –20 | –223 | –1,967 |
| Cash flow from investing activities | –438 | –584 | –3,922 |
| Financing activities | |||
| Dividend paid | – | – | –853 |
| Acquisition of own shares | –183 | –200 | –200 |
| Issuance of bonds | – | – | 1,000 |
| Redemption of bond | – | – | –1,750 |
| Issuance of commercial papers and other long-term borrowing | 689 | 1,516 | 6,888 |
| Redemption of commercial papers and other long-term borrowing | –805 | –757 | –4,900 |
| Change in other interest-bearing net debt | –190 | –585 | –1,043 |
| Cash flow from financing activities | –488 | –26 | –858 |
| Cash flow for the period | –11 | 669 | 297 |
| Liquid fund at beginning of the period1) | 2,492 | 2,264 | 2,264 |
| Translation differences in liquid funds | 62 | 7 | –69 |
| Liquid funds at end of period 1) | 2,542 | 2,939 | 2,492 |
1) Excluding liquid funds within cash processing operations. See also Note 7 Liquid funds.
| CONSOLIDATED STATEMENT OF CASH FLOWS EXCLUDING THE IFRS 16 IMPACT, ADDITIONAL INFORMATION | |
|---|---|
| SEK m | Quarter 1 | Quarter 1 | R12 | |
|---|---|---|---|---|
| Full year | ||||
| Operating income (EBITA)1) | 721 | 691 | 3,002 | 2,972 |
| Depreciation1) | 410 | 357 | 1,653 | 1,600 |
| Change in accounts receivable | –96 | –17 | –62 | 17 |
| Change in other operating capital employed and other items1) | –215 | 47 | 197 | 458 |
| Cash flow from operating activities before investments | 820 | 1,078 | 4,789 | 5,047 |
| Investments in fixed assets, net | –419 | –359 | –2,016 | –1,956 |
| Cash flow from operating activities | 402 | 719 | 2,774 | 3,091 |
| Financial items paid and received1) | –79 | –54 | –381 | –356 |
| Income tax paid | –88 | 22 | –732 | –622 |
| Free cash flow | 234 | 687 | 1,660 | 2,113 |
| Cash flow effect of items affecting comparability | –15 | –6 | –18 | –9 |
| Acquisition of operations | –20 | –223 | –1,763 | –1,967 |
| Acquisition–related costs and revenue, paid and received2) | –2 | –4 | –16 | –18 |
| Dividend paid | – | – | –853 | –853 |
| Acquisition of own shares | –183 | –200 | –183 | –200 |
| Issuance of bonds | – | – | 1,000 | 1,000 |
| Redemption of bonds | – | – | –1,750 | –1,750 |
| Issuance of commercial papers and other long–term borrowing | 689 | 1,516 | 6,061 | 6,888 |
| Redemption of commercial papers and other long–term borrowing | –805 | –757 | –4,948 | –4,900 |
| Change in other interest–bearing net debt1) | 89 | –344 | 425 | –8 |
| Cash flow for the period | –11 | 669 | –383 | 297 |
1) Excluding the IFRS 16 impact.
2) Refers to the cash flow effect of acquisition–related transaction–, restructuring and integration costs.
Notes
NOTE 1 – ACCOUNTING PRINCIPLES
The Group's financial reports are prepared in accordance with the International Financial Reporting Standards (IAS/IFRS, as adopted by the European Union) issued by the International Accounting Standards Board, and statements issued by the IFRS Interpretations Committee (IFRIC). This interim report has been prepared according to IAS 34 Interim Financial Reporting. The most important accounting principles according to IFRS, which are the accounting standards used in the preparation of this interim report, are described in the 2023 Annual Report.
New or changed standards and interpretations that entered into force on January 1, 2024 are not expected to have any material effect on the Group's financial statements.
Loomis has applied the IAS 29 Financial Reporting in Hyperinflationary Economies for the operations in Turkey and Argentina.
Critical estimates and assessments
For critical estimates and assessments as well as contingent liabilities, please refer to pages 90 and 119 of the 2023 Annual Report. There have been no other significant changes compared to what is described in the Annual Report.
Parent Company – Loomis AB
The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities.
NOTE 2 – RISKS AND UNCERTAINTIES
Risk management and key risks
Sound risk management is one of Loomis' most important success factors. Given Loomis' history and the nature of the service offering, the Company has extensive experience in managing risk and takes a structured and proactive approach throughout the organization, at both the local and central levels. Well-managed risk can create opportunities and add value to the business, while risk that is not efficiently managed can cause negative incidents and losses.
Loomis' risk management is an ongoing and iterative process. The risk environment changes over time and it is therefore necessary to continuously revisit, update and identify new risks. Risk management routines are integrated into the Group's business planning and performance monitoring. Significant processes are documented and any material risks associated with a specific process are identified and defined in a risk register. The annual risk assessment and the resulting risk register are coordinated and maintained at Group level.
Loomis is exposed to strategic, operational, legal and compliance, environment as well as financial risks. There are risks that pertain to Loomis itself and the industry as well as risks that are more general in nature. Risks that have been identified to be of key significance include payment market changes, data privacy, health and safety, attracting and retaining employees, internal fraud and corruption, information security, physical security, environment and climate, compliance, money laundering and financial risks.
For further information on risks, risk management and opportunities, see pages 67–73 of Loomis' Annual and Sustainability Report 2023.
Factors of uncertainty
Changes in general economic conditions and market trends have various effects on demand for cash handling services. These include cash usage trends, changes in consumption levels, the risk of robbery and bad debt losses, and the staff turnover rate.
The preparation of financial reports requires the Board of Directors and Group Management to make estimates and assessments. Estimates and assessments affect both the income statement and the balance sheet as well as the information disclosed on things like contingent liabilities. Actual outcomes may deviate from these estimates and assessments depending on other circumstances or other conditions.
In 2024 the actual financial outcome of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the Annual and Sustainability Report 2023 and where applicable, under the heading "Critical estimates and assessments" in Note 1 of this report, may deviate from the financial assessments and provisions made by management. This may impact the Group's profitability and financial position.
Seasonal variations
Loomis' earnings fluctuate across the seasons and this should be taken into consideration when making assessments based on interim financial information. The primary reason for these seasonal variations is that the need for cash handling services increases during the vacation periods.
NOTE 3 – REVENUE BY BUSINESS LINE
| Europe and Latin America |
USA | Loomis Pay |
Group-wide functions and elimi nations |
Total | Europe and Latin America |
USA | Loomis Pay |
Group-wide functions and elimi nations |
Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Quarter 1 2024 |
Quarter 1 2023 |
||||||||
| Cash in transit (CIT) | 1,211 | 1,428 | – | – | 2,640 | 1,206 | 1,359 | – | – | 2,565 |
| Cash management services (CMS) | 718 | 540 | – | – | 1,258 | 731 | 520 | – | – | 1,252 |
| ATM | 662 | 862 | – | – | 1,524 | 634 | 835 | – | – | 1,469 |
| Automated Solutions | 467 | 834 | – | – | 1,300 | 232 | 730 | – | – | 962 |
| International | 239 | 118 | – | – | 357 | 275 | 120 | – | – | 395 |
| FXGS | 133 | – | – | – | 133 | 122 | – | – | – | 122 |
| Loomis Pay | – | – | 16 | – | 16 | – | – | 7 | – | 7 |
| Revenue, other and internal | 41 | 18 | – | –35 | 25 | 50 | 33 | – | –43 | 39 |
| Total revenue | 3,471 | 3,801 | 16 | –35 | 7,253 | 3,250 | 3,598 | 7 | –43 | 6,812 |
| Timing of revenue recognition, external | ||||||||||
| At a point in time | 1,021 | 129 | 4 | – | 1,153 | 652 | 109 | 3 | – | 765 |
| Over time | 2,434 | 3,654 | 12 | – | 6,100 | 2,572 | 3,471 | 4 | – | 6,047 |
| Total external revenue | 3,455 | 3,783 | 16 | – | 7,253 | 3,225 | 3,580 | 7 | – | 6,812 |
| Europe and Latin America |
USA | Loomis Pay |
Group-wide functions and eliminations |
Total | |
|---|---|---|---|---|---|
| SEK m | Full year 2023 |
||||
| Cash in transit (CIT) | 5,047 | 5,617 | – | – | 10,664 |
| Cash management services (CMS) | 3,072 | 2,201 | – | – | 5,273 |
| ATM | 2,700 | 3,412 | – | – | 6,112 |
| Automated Solutions | 1,168 | 3,121 | – | – | 4,289 |
| International | 1,142 | 554 | – | – | 1,695 |
| FXGS | 539 | – | – | – | 539 |
| Loomis Pay | – | – | 52 | – | 52 |
| Revenue, other and internal | 158 | 72 | – | –147 | 83 |
| Total revenue | 13,826 | 14,977 | 52 | –147 | 28,707 |
| Timing of revenue recognition, external | |||||
| At a point in time | 3,303 | 453 | 10 | – | 3,766 |
| Over time | 10,448 | 14,452 | 41 | – | 24,941 |
| Total external revenue | 13,750 | 14,905 | 52 | – | 28,707 |
REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | Full year |
| USA | 3,790 | 3,569 | 14,877 |
| France | 911 | 896 | 3,749 |
| Spain | 435 | 410 | 1,757 |
| Switzerland | 416 | 421 | 1,775 |
| UK | 274 | 269 | 1,127 |
| Sweden | 203 | 198 | 838 |
| Other countries | 1,224 | 1,049 | 4,584 |
| Total revenue | 7,253 | 6,812 | 28,707 |
External revenue is reported per significant geographical market.
NOTE 4 – SEGMENT OVERVIEW
Loomis has operations in a number of countries, with country presidents being responsible for each country. Segment presidents supervise operations in a number of countries and also support the respective country president. Operating segments are reported in accordance with the internal Loomis reporting, submitted to Loomis' CEO who has been identified as the most senior executive decision-maker within Loomis. Loomis has the following segments: Europe and Latin America, USA, Loomis Pay and Group-wide functions. Presidents for the segments are responsible for following up the segments' operating income before amortization of acquisition-related intangible assets, acquisition-related costs and revenue and items affecting comparability (EBITA), according to the manner in which Loomis reports its consolidated statement of income. This then forms the basis for how the CEO monitors development, allocates resources etc. Loomis has therefore chosen this structure for its segment reporting.
REVENUE
| 2023 | 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Q1 | Q2 | Q3 | Q4 | Full year |
Q1 | Q2 | Q3 | Q4 | Full year |
| Europe and Latin America | 3,250 | 3,396 | 3,588 | 3,591 | 13,826 | 3,471 | – | – | – | – |
| USA | 3,598 | 3,697 | 3,842 | 3,840 | 14,977 | 3,801 | – | – | – | – |
| Loomis Pay | 7 | 12 | 15 | 17 | 52 | 16 | – | – | – | – |
| Group-wide functions | – | – | – | – | – | – | – | – | – | – |
| Eliminations | –43 | –34 | –38 | –33 | –147 | –35 | – | – | – | – |
| Total revenue | 6,812 | 7,072 | 7,408 | 7,415 | 28,707 | 7,253 | – | – | – | – |
OPERATING INCOME (EBITA)
| 2023 | 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Full | Full | ||||||||||
| SEK m | Q1 | Q2 | Q3 | Q4 | year | Q1 | Q2 | Q3 | Q4 | year | |
| Europe and Latin America | 309 | 353 | 387 | 353 | 1,403 | 304 | – | – | – | – | |
| USA | 500 | 515 | 547 | 578 | 2,139 | 573 | – | – | – | – | |
| Loomis Pay | –54 | –53 | –52 | –60 | –218 | –55 | – | – | – | – | |
| Group-wide functions | –38 | –63 | –68 | –77 | –246 | –67 | – | – | – | – | |
| Operating income (EBITA) | 717 | 752 | 814 | 794 | 3,077 | 754 | – | – | – | – |
OPERATING INCOME (EBIT)
| 2023 | 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Full | Full | |||||||||
| SEK m | Q1 | Q2 | Q3 | Q4 | year | Q1 | Q2 | Q3 | Q4 | year |
| Europe and Latin America | 266 | 321 | 355 | 312 | 1,254 | 268 | – | – | – | – |
| USA | 495 | 507 | 537 | 569 | 2,107 | 568 | – | – | – | – |
| Loomis Pay | –54 | –54 | –52 | –60 | –218 | –55 | – | – | – | – |
| Group-wide functions | –40 | –65 | –66 | –84 | –255 | –69 | – | – | – | – |
| Operating income (EBIT) before items affecting | ||||||||||
| comparability | 667 | 709 | 774 | 737 | 2,888 | 710 | – | – | – | – |
| Items affecting comparability | –12 | –13 | –2 | –101 | –128 | –15 | – | – | – | – |
| Operating income (EBIT) | 656 | 696 | 772 | 636 | 2,759 | 695 | – | – | – | – |
SEGMENT OVERVIEW STATEMENT OF INCOME
| Europe and Latin America |
USA | Loomis Pay |
Group-wide functions |
Eliminations | Total | |
|---|---|---|---|---|---|---|
| SEK m | Quarter 1 2024 | |||||
| Revenue | 3,283 | 3,790 | 16 | – | –34 | 7,056 |
| Revenue, acquisitions | 188 | 11 | – | – | –1 | 198 |
| Total revenue | 3,471 | 3,801 | 16 | – | –35 | 7,253 |
| Production expenses | –2,636 | –2,678 | –32 | – | 35 | –5,311 |
| Gross income | 835 | 1,123 | –16 | – | – | 1,942 |
| Selling and administrative expenses | –567 | –555 | –40 | –68 | – | –1,230 |
| Other income and expenses | – | – | – | –2 | – | –2 |
| Items affecting comparability | –15 | – | – | – | – | –15 |
| Operating income (EBIT) | 252 | 568 | –55 | –69 | – | 695 |
| Net financial items | – | – | – | –158 | – | –158 |
| Loss on monetary net assets/liabilities | – | – | – | –30 | – | –30 |
| Income before taxes | 252 | 568 | –55 | –258 | – | 507 |
SEGMENT OVERVIEW STATEMENT OF INCOME
| Europe and Latin America |
USA | Loomis Pay |
Group-wide functions |
Eliminations | Total | |
|---|---|---|---|---|---|---|
| SEK m | Quarter 1 2023 | |||||
| Revenue | 3,250 | 3,576 | 7 | – | –43 | 6,790 |
| Revenue, acquisitions | – | 22 | – | – | – | 22 |
| Total revenue | 3,250 | 3,598 | 7 | – | –43 | 6,812 |
| Production expenses | –2,447 | –2,583 | –20 | – | 43 | –5,006 |
| Gross income | 803 | 1,015 | –12 | – | – | 1,806 |
| Selling and administrative expenses | –524 | –520 | –41 | –38 | – | –1,123 |
| Other income and expenses | –14 | – | – | –1 | – | –15 |
| Items affecting comparability | –12 | – | – | – | – | –12 |
| Operating income (EBIT) | 254 | 495 | –54 | –40 | – | 656 |
| Net financial items | – | – | – | –89 | – | –89 |
| Loss on monetary net assets/liabilities | – | – | – | –23 | – | –23 |
| Income before taxes | 254 | 495 | –54 | –152 | – | 543 |
SEGMENT OVERVIEW BALANCE SHEET
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Mar 31 | Mar 31 | Dec 31 |
| Europe and Latin America | |||
| Assets | 21,102 | 16,885 | 19,594 |
| Liabilities | 8,729 | 7,520 | 7,796 |
| USA | |||
| Assets | 14,550 | 14,124 | 12,550 |
| Liabilities | 3,407 | 2,073 | 2,494 |
| Other 1) | |||
| Assets | 2,780 | 3,134 | 4,036 |
| Liabilities | 12,763 | 11,854 | 13,212 |
| Shareholders' equity | 13,533 | 12,696 | 12,678 |
| Group total | |||
| Assets | 38,432 | 34,143 | 36,180 |
| Liabilities | 24,899 | 21,447 | 23,502 |
| Shareholders' equity | 13,533 | 12,696 | 12,678 |
1) Segment Other includes of Group-wide functions and Loomis Pay.
NOTE 5 – ACQUISITIONS
| Consolidated | as of Segment | Acquired share1) % |
Annual revenue SEK m |
Number of employees |
Purchase price SEK m |
Goodwill SEK m |
Acquisition related intangible assets SEK m |
Other acquired net assets SEK m |
|
|---|---|---|---|---|---|---|---|---|---|
| Opening balance, January 1, 2024 | 9,033 | 1,274 | |||||||
| Acquisition of Electronic Dreams SL (Hosteltáctil) 3) |
March | Europe | 100 | 182) | 31 | 37 | 334) | 2 | 2 |
| Total acquisitions January – March 2024 | 33 | 2 | 2 | ||||||
| Adjustment of preliminary acquisition analyses |
10 | – | |||||||
| Amortization of acquisition-related intangible assets |
– | –53 | |||||||
| Exchange rate differences | 378 | 47 | |||||||
| Closing balance March 31, 2024 | 9,454 | 1,269 |
1) Refers to share of votes. In acquisitions of assets and liabilities, no share of votes is indicated.
2) Annual revenue 2023.
3) The acquisition analysis is preliminary and subject to final adjustment no later than one year from the acquisition date.
4) Goodwill arising in connection with the acquisition is primarily attributable to market and synergy effects.
Acquisition of Electronic Dreams SL (Hosteltáctil)
Loomis AB has acquired the shares in Electronic Dreams SL, Spain. through the wholly owned subsidiary Loomis Digital Services AB. A preliminary balance sheet per the acquisition date is included in the table below.
Summarized balance sheet from the acquisition of assets and liabilities of Electronic Dreams SL (Hosteltáctil) at the date of acquisition, March 6, 2024.
| SEK m | Preliminary aquisition balance |
|---|---|
| Intangible assets | 6 |
| Tangible assets | – |
| Cash and cash equivalents | 2 |
| Financial assets and liabilities | –3 |
| Other assets and liabilities | –1 |
| Net identifiable assets and liabilities | 4 |
| Purchase price paid | 21 |
| Deferred purchase price | 15 |
| Goodwill | 33 |
Total transaction costs for the acquisition amounted to approximately SEK 0.2 million and have been recognized on the line Other income and expenses.
Summarized balance sheet from the acquisition of assets and liabilities of Cima S.p.A at the date of acquisition, October 2, 2023.
| SEK m | Preliminary acquisition balance |
Final acquisition balance |
|---|---|---|
| Intangible assets | 657 | 657 |
| Tangible assets | 5 | 5 |
| Cash and cash equivalents | 149 | 149 |
| Financial assets and liabilities | 4 | 4 |
| Other assets and liabilities | 298 | 288 |
| Net identifiable assets and liabilities | 1,112 | 1,102 |
| Purchase price paid | 1,801 | 1,801 |
| Deferred purchase price | 188 | 188 |
| Goodwill | 877 | 887 |
NOTE 6 – ITEMS AFFECTING COMPARABILITY
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | Full year |
| Devaluation effect attributable to Argentina | – | – | –45 |
| Impairment of goodwill within the European segment | – | – | –54 |
| Restructuring costs within the European segment | –15 | –12 | –29 |
| Total items affecting comparability | –15 | –12 | –128 |
NOTE 7 – LIQUID FUNDS
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Mar 31 | Mar 31 | Dec 31 |
| Liquid funds | 7,884 | 7,412 | 7,611 |
| Adjusted for inventory of cash at the cash processing operations | –4,146 | –3,130 | –3,861 |
| Adjusted for prepayments from customers | –1,196 | –1,342 | –1,259 |
| Liquid funds excluding funds for cash processing activities | 2,542 | 2,939 | 2,492 |
NOTE 8 – TRANSACTIONS WITH RELATED PARTIES
Transactions between Loomis and related parties are described in Note 31 of the 2023 Annual Report. There have been no transactions with related parties during the period that have materially impacted the Company's earnings and financial position.
NOTE 9 – NUMBER OF SHARES AS OF MARCH 31, 2024
| No. of shares | No. of votes | Quota value | SEK m | |
|---|---|---|---|---|
| Shares | 75,279,829 | 75,279,829 | 5 | 376 |
| Total no. of shares | 75,279,829 | 75,279,829 | 376 | |
| Total treasury shares1) | –4,852,374 | –4,852,374 | ||
| Total no. of outstanding shares | 70,427,455 | 70,427,455 |
1) During the period 643,592 shares was added to the treasury shares.
NOTE 10 – CONTINGENT LIABILITIES, GROUP
| 2024 | 2023 | 2023 |
|---|---|---|
| Mar 31 | Mar 31 | Dec 31 |
| 2,566 | 2,607 | 2,574 |
KEY RATIOS
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| Quarter 1 | Quarter 1 | R12 | Full year | |
| Real growth, % | 9.2 | 12.1 | 8.5 | 9.0 |
| Organic growth, % | 6.3 | 11.7 | 6.6 | 7.8 |
| Total growth, % | 6.5 | 21.1 | 10.0 | 13.4 |
| Gross margin, % | 26.8 | 26.5 | 25.5 | 25.4 |
| Selling and administration expenses in % of total revenue | –17.0 | –16.5 | –15.4 | –15.2 |
| Operating margin (EBITA), % | 10.4 | 10.5 | 10.7 | 10.7 |
| Tax rate, % | 29.2 | 25.7 | 31.3 | 30.4 |
| Net margin, % | 4.9 | 5.9 | 5.0 | 5.2 |
| Return on shareholders' equity, %1) | 11.1 | 14.0 | 11.1 | 11.6 |
| Return on capital employed, %1) | 14.2 | 15.1 | 14.2 | 14.5 |
| Equity ratio, % | 35.2 | 37.2 | 35.2 | 35.0 |
| Liquid funds excluding funds within cash processing operations (SEK m) |
2,542 | 2,939 | 2,542 | 2,492 |
| Net debt (SEK m) | 10,295 | 7,369 | 10,295 | 9,853 |
| Net debt/EBITDA | 1.75 | 1.40 | 1.75 | 1.72 |
| Cash flow from operating activities2) as % of operating income (EBITA) | 53 | 100 | 89 | 100 |
| Investments in relation to depreciation | 0.6 | 0.6 | 0.7 | 0.7 |
| Investments as a % of total revenue | 5.8 | 5.3 | 6.9 | 6.8 |
| Earnings per share before dilution, SEK | 5.06 | 5.64 | 20.42 | 21.00 |
| Shareholders' equity per share before dilution, SEK | 192.15 | 178.63 | 192.15 | 178.39 |
| Cash flow from operating activities per share before dilution, SEK | 12.92 | 17.90 | 66.21 | 71.21 |
| Dividend per share, SEK | – | – | 12.00 | 12.00 |
| Number of outstanding shares (millions) | 70.4 | 71.1 | 70.4 | 71.1 |
| Average number of outstanding shares before dilution (millions) | 70.8 | 71.4 | 71.0 | 71.2 |
1) Return ratios are calculated on average capital employed, R12. 2) Excluding the IFRS 16 impact.
Parent Company
PARENT COMPANY SUMMARY STATEMENT OF INCOME
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | Full year |
| Revenue | 248 | 258 | 1,062 |
| Operating income (EBIT) | 106 | 143 | 464 |
| Income after financial items | 80 | 52 | 2,892 |
| Net income for the period | 64 | 27 | 2,838 |
The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The relatively higher net income in 2024 is mainly due to impairment of financial assets in the year of comparison.
PARENT COMPANY SUMMARY BALANCE SHEET
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Mar 31 | Mar 31 | Dec 31 |
| Fixed assets | 13,394 | 12,882 | 12,900 |
| Current assets | 2,260 | 3,234 | 2,485 |
| Total assets | 15,654 | 16,116 | 15,385 |
| Shareholders' equity | 6,769 | 4,953 | 6,878 |
| Untaxed reserves | 2 | 6 | 2 |
| Long-term liabilities | 6,143 | 5,685 | 6,854 |
| Short-term liabilities | 2,740 | 5,472 | 1,651 |
| Total shareholders' equity and liabilities | 15,654 | 16,116 | 15,385 |
The Parent Company's fixed assets consist mainly of shares in subsidiaries and loan receivables from subsidiaries. The liabilities are mainly external liabilities and liabilities to subsidiaries. During the first quarter, shares have been bought back similar as in 2023.
CONTINGENT LIABILITIES, PARENT COMPANY
| 2024 | 2023 | 2023 |
|---|---|---|
| Mar 31 | Mar 31 | Dec 31 |
| 8,357 | 7,130 | 8,058 |
Alternative performance measures
Use of alternative performance measures
To support Group Management and other stakeholders to analyze the Group's financial performance, Loomis reports certain performance measures that are not defined by IFRS. Group Management believes that this information facilitates analysis of the Group's performance. The Loomis Group primarily uses the following alternative performance measures (see also Definitions for a full list of measures):
- Real growth and Organic growth in sales
- Operating income (EBITA) and Operating margin (EBITA), %
- Cash flow from operating activities as % of operating income (EBITA)
- Net debt and Net debt/EBITDA
- Equity ratio, %
- Capital employed and Return on capital employed
- Return on shareholders' equity
Cash flow from operating activities as % of operating income (EBITA)
Loomis' main measure of cash flow (cash flow from operating activities) focuses on the current cash flow from operating activities based on EBITA adding back amortization/depreciation and the effect of changes in accounts receivable, as well as changes in other working capital and other items. Cash flow from operating activities reflects the cash flow that the operating activities generate before payments of financial items, income tax, items affecting comparability, acquisitions and divestments, as well as dividends and changes in the Group's net debt. Cash flow from operating activities as a percentage of operating income (EBITA) illustrates the cash conversion that Loomis has, i.e. how recognized earnings have resulted in cash flow.
Loomis provides an alternative presentation of cash flow which includes cash flow from operating activities adjusted for the impact of IFRS 16 Leases. This is presented in the section Financial Reports in this report.
Real growth and Organic growth in sales
Since Loomis generates most of its revenue in currencies other than the reporting currency (i.e. Swedish kronor, SEK) and exchange rates have historically proved to be relatively volatile, and since the Group has made a number of acquisitions, sales growth is presented both as exchange rate adjusted and adjusted for both exchange rate fluctuations and effects from acquisitions. This makes it possible to analyze and explain growth excluding exchange rate effects and acquisitions.
| 2024 | 2023 | |||
|---|---|---|---|---|
| SEK m | Quarter 1 | Quarter 1 | Growth | Growth, % |
| Recognized revenue | 7,253 | 6,812 | 441 | 6.5 |
| Organic growth | 430 | 6.3 | ||
| Revenue, acquisitions | 198 | 2.9 | ||
| Real growth | 628 | 9.2 | ||
| Exchange rate effects | –187 | –2.7 | ||
Operating income (EBIT) before items affecting comparability, Operating income (EBITA) and Operating margin (EBITA), %
Loomis' internal control of operating activities is focused on the operating income that is created within and can be impacted by local operating activities. For this reason Loomis has chosen to focus on earnings and margins before interest, taxes, amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability.
| SEK m Quarter 1 Operating income (EBIT) Adding back items affecting comparability Operating income (EBIT) before items affecting comparability Adding back acquisition-related costs |
695 | Quarter 1 656 |
Full year |
|---|---|---|---|
| 2,759 | |||
| 15 | 12 | 128 | |
| 710 | 667 | 2,888 | |
| 2 | 15 | 36 | |
| Adding back amortization of acquisition-related intangible assets | 42 | 34 | 153 |
| Operating income (EBITA) | 754 | 717 | 3,077 |
| Calculation of operating margin (EBITA), % | |||
| EBITA | 754 | 717 | 3,077 |
| Total revenue | 7,253 | 6,812 | 28,707 |
| EBITA/Total revenue, % | 10.4 | 10.5 | 10.7 |
Net debt and Net debt/EBITDA
Net debt is an important concept to understand a company's financing structure and leverage. Net debt is the net of interestbearing liabilities and assets, and is used together with shareholders' equity to finance the Group's capital employed. Loomis excludes funds within cash processing operations and financing of funds within cash processing operations (so-called stock funding) from the definition of net debt. The financial leverage is measured by calculating net debt as percentage of operating income after adding back amortization and depreciation, i.e. net debt/EBITDA.
Reconciliation of Net debt and calculation of Net debt/EBITDA
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Mar 31 | Mar 31 | Dec 31 |
| Short-term loans | 1,199 | 1,812 | 431 |
| Long-term loans | 6,324 | 5,045 | 7,017 |
| Total loans payable | 7,523 | 6,857 | 7,448 |
| Liquid funds excluding funds in cash processing operations |
–2,542 | –2,939 | –2,492 |
| Other interest-bearing assets | –219 | –802 | –329 |
| Financial net debt | 4,762 | 3,116 | 4,627 |
| Lease liabilities | 5,199 | 3,948 | 4,855 |
| Pension net, assets (–) liabilities (+) | 335 | 304 | 371 |
| Net debt | 10,295 | 7,369 | 9,853 |
| 2024 | 2023 | 2023 |
|---|---|---|
| Q1 | Q1 | Full year |
| 3,115 | 2,936 | 3,037 |
| 2,765 | 2,325 | 2,668 |
| 5,880 | 5,261 | 5,745 |
| 1.75 | 1.40 | 1.72 |
Equity ratio, %
The equity ratio is a measure that show the ratio of equity financing in relation to the company's total assets. The measure is used as an indication of financial strength and resilience to losses.
Reconciliation equity ratio, %
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Mar 31 | Mar 31 | Dec 31 |
| Shareholders' equity | 13,533 | 12,696 | 12,678 |
| Total assets | 38,432 | 34,143 | 36,180 |
| Equity ratio, % | 35.2 | 37.2 | 35.0 |
Capital employed and Return on capital employed, %
Capital employed is a measure of how much capital is tied up in operating activities and that is therefore expected to generate returns in the form of operating income. Capital employed is equivalent to the sum of all financing in the form of net debt and shareholders' equity. Loomis includes funds within cash processing operations and financing of funds within cash processing operations (so-called stock funding) in the definition of capital employed.
Reconciliation of capital employed and return on capital employed, %
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Mar 31 | Mar 31 | Dec 31 |
| Fixed assets | |||
| Goodwill | 9,454 | 8,302 | 9,033 |
| Acquisition-related intangible assets | 864 | 740 | 874 |
| Other intangible assets | 806 | 342 | 781 |
| Buildings and land | 1,129 | 1,143 | 1,089 |
| Machinery and equipment | 5,442 | 5,098 | 5,180 |
| Right-of-use assets | 4,924 | 3,822 | 4,634 |
| Other operating fixed assets1) | 1,177 | 947 | 1,038 |
| Current assets | |||
| Inventory | 540 | 92 | 509 |
| Accounts receivable | 3,627 | 3,343 | 3,378 |
| Other operating current assets2) | 2,050 | 1,842 | 1,466 |
| Funds in cash processing operations | 5,342 | 4,472 | 5,119 |
| Long-term liabilities | |||
| Deferred tax liability | –493 | –437 | –515 |
| Provisions for claims reserves | –655 | –486 | –596 |
| Other provisions | –136 | –126 | –128 |
| Other long-term liabilities | –290 | –207 | –221 |
| Current liabilities | |||
| Accounts payable | –974 | –1,036 | –860 |
| Liabilities in cash processing operations | –5,058 | –4,312 | –5,016 |
| Accrued expenses and prepaid income | –2,233 | –1,962 | –1,952 |
| Other operating current liabilities3) | –1,690 | –1,513 | –1,282 |
| Capital employed | 23,828 | 20,065 | 22,531 |
| Capital employed (average) | 21,974 | 19,495 | 21,198 |
| Operating income (EBITA), R12 | 3,115 | 2,936 | 3,077 |
| Return on capital employed, % | 14.2 | 15.1 | 14.5 |
1) Includes the items Contract assets, Deferred tax assets and Other long-term
2) Includes the items Other current receivables, Current tax assets, and Prepaid expenses and accrued income.
3) Includes the items Provisions for claims reserves, Current tax liabilities, Other provisions and Other current liabilities. .
Return on shareholders' equity
receivables.
Return on shareholders' equity is an important concept to understand a company's return on the capital that the shareholders have injected and earned. The return is calculated as earnings for the period (rolling 12 months) in relation to average shareholders' equity for the period.
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK m | Q1 | Q1 | Full year |
| Net income for the period, R12 | 1,450 | 1,710 | 1,495 |
| Shareholders' equity (average) | 13,096 | 12,208 | 12,882 |
| Return on equity, % | 11.1 | 14.0 | 11.6 |
Definitions
| Gross margin, % | Gross income as a percentage of total revenue. |
|---|---|
| Operating income (EBITA) | Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and items affecting comparability. |
| Operating margin (EBITA), % | Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and items affecting comparability, as a percentage of revenue. |
| Operating income (EBITDA) | Earnings Before Interest, Taxes, Depreciation, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and items affecting comparability. |
| Operating income (EBIT) | Earnings Before Interest and Tax. |
| Operating income (EBIT before items affecting comparability) |
Earnings before interest, tax and items affecting comparability. |
| Items affecting comparability | Items affecting comparability are reported events and transactions whose impact are important to note when the period's results are compared with previous periods, such as capital gains and ca pital losses from divestments of significant cash generating units, material write-downs or other sig nificant items affecting comparability. |
| Real growth, % | Increase in revenue for the period, adjusted for changes in exchange rates, as a percentage of the previous year's revenue. |
| Organic growth, % | Increase in revenue for the period, adjusted for acquisition/divestitures and changes in exchange rates, as a percentage of the previous year's revenue adjusted for divestitures. |
| Total growth, % | Increase in revenue for the period as a percentage of the previous year's revenue. |
| Net margin, % | Net income for the period after tax as a percentage of total revenue. |
| Earnings per share before dilution Net income for the period in relation to the average number of outstanding shares during the period. |
|
| Earnings per share after dilution | Net income for the period in relation to the average number of outstanding shares after dilution during the period. |
| Cash flow from operations per share |
Cash flow for the period from operations in relation to the number of shares after dilution. |
| Investments in relation to depre ciation |
Investments in fixed assets, net, for the period, in relation to depreciation, including the IFRS 16 impact. |
| Investments as a % of total revenue |
Investments in fixed assets, net, for the period, as a percentage of total revenue. |
| Shareholders' equity per share | Shareholders' equity in relation to the number of shares before and after dilution. |
| Cash flow from operating activities as % of operating income (EBITA) |
Operating income, EBITA, (excluding IFRS 16), adjusted for depreciation (excluding IFRS 16), change in accounts receivable and other items (excluding IFRS 16) as well as net investments in fixed assets as a percentage of operating income, EBITA. |
| Return on equity, % | Net income for the period (rolling 12 months) as a percentage of the average balance of shareholders' equity. |
| Return on capital employed, % | Operating income (EBITA) (rolling 12 months) as a percentage of the average balance of capital em ployed. |
| Equity ratio, % | Shareholders' equity as a percentage of total assets. |
| Capital employed | Shareholders' equity with the addition of net debt. |
| Net debt | Interest-bearing liabilities less interest-bearing assets and liquid funds excluding funds for cash pro cessing activities. |
| Net debt/EBITDA | Net debt as percentage of operating income after reversal of depreciations and amortizations. |
| R12 | Rolling 12 months. |
| Scope 1 | Green House Gas (GHG) emissions from sources that an organization own or controls directly. |
| Scope 2 | Green House Gas (GHG) emissions that an organization causes indirectly when the energy it purchases, and uses is produced. |
| n/a | Not applicable. |
| Other | Amounts in tables and other combined amounts have been rounded off on an individual basis. Minor differences due to this rounding-off, may, therefore, appear in the totals. |
Outlook 2024
The company is not providing any forecast information for 2024.
Stockholm, May 6, 2024
Aritz Larrea President and CEO
This interim report has not been subject to a review by the company's auditors.
Loomis in brief
Vision
Managing cash in society.
Financial targets 2022–2024
- Revenue: Average currency-adjusted growth of 5–8 percent per year
- Operating margin EBITA: 12–14 percent for 2024
Sustainability targets 2022–2024
- Reduce carbon emissions by 15 percent compared to 2019. Refers to scope 1&2 in total
- Reduction of the occupational injury frequency by 15 percent compared to 2021
Dividend policy
• 40–60 percent of the result for the year
Telephone conference and audio cast
A telephone conference will be held on May 7, 2024 at 10:00 a.m. (CEST).
To follow the conference call via telephone and participate in Q&A session please call (local call); United Kingdom: +44 (0) 161 2508 206 USA: +1 (0) 561 771 1427 Sweden: +46 (0)8 505 100 39 International: +39 02 304 64 867
The audio cast can be followed at our website www.loomis.com (follow "Financial presentation").
A recorded version of the audio cast will be available at www.loomis.com after the telephone conference.
Upcoming reporting dates
Interim Report Interim Report January – June 2024 January – September 2024 July 24, 2024 October 29, 2024
Operations
Stockholm Large-Cap list.
Loomis offers secure and effective comprehensive solutions for managing payments, including the distribution, handling, storage and recycling of cash and other valuables. Loomis' customers are mainly financial institutions and retailers. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employed around 25,000 people at the end of 2023 and had revenue in 2023 of more than SEK 28 billion. Loomis is listed on Nasdaq
Loomis' Annual general meeting will be held on May 6, 2024 in Stockholm.
For further information
Jenny Boström, Head of Sustainability and IR, +46 (0)79 006 45 92 , e-mail: [email protected] Refer also to the Loomis website: www.loomis.com
This information is information that Loomis 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 person set out above, at 3 p.m. (CEST) on May 6, 2024.
