Gunnebo Interim Report January-June 2017
CEO’S COMMENTS ON THE SECOND QUARTER 2017
The second quarter was in line with the same period last year with a turnover of MSEK 1,510 and an operating margin of 6.8% excluding non-recurring items. Growth has been good within both Entrance Security and Cash Management.
DEVELOPMENT OF OUR BUSINESS
In region EMEA sales developed well during the second quarter in all sub-regions with the exception of France and South Africa. It is positive that the operating margin in EMEA for the quarter is on the same level as last year, despite organic sales growth of -2%. Excluding France, organic sales growth in EMEA was +4%. In France, which is seeing declining demand from the banking segment, we continue with structural changes. This is in line with our ongoing focus on improving productivity in the European business by expansion in other customer segments and productivity-enhancing activities. Gunnebo's business in South Africa has also seen weaker demand from the banking sector in the past quarters. We have therefore initiated a review of the business to adapt it to new market conditions. In the Middle East, the roll-out of Gunnebo's solutions for efficient cash management in the United Arab Emirates, together with the CIT company, Transguard, is moving forward at a good pace.
In the Americas region, sales growth has been good during the second quarter, primarily due to positive developments in North America. During the quarter the Hamilton brand turned 50 which was marked by the introduction of an updated brand identity to the channel partners to further strengthen the brand in North America. In Latin America, sales have developed weaker than expected mainly due to slow investment climate.
In region Asia-Pacific, sales growth has been negative. This development is explained by the large OKI project in Indonesia, where sales in the second quarter of 2016 were much higher than this year. The project has been running since the second half of 2015 and is expected to end during the third quarter of 2017. Excluding OKI, growth in the region was flat. Markets in Australia, South-East Asia and China, however, had good sales growth in the quarter. In China, sales of Entrance Security for both subways and public buildings continued to be positive. In India, sales were weaker due to continued low demand from the banking segment. However, our ATM safes business in the country has continued to developed well. We are also working intensively to grow our Indian business into other segments.
During the quarter we refinanced the Group's long-term borrowing, which resulted in an increased loan facility with improved terms. This gives us better opportunities to invest in profitable growth through increased R&D and acquisitions.
For the quarter, we report an operating profit excluding non-recurring costs of MSEK 103 and an operating margin of 6.8%. With a quarterly result in line with the same quarter last year and new loan facilities, we are ready to continue implementing our strategy for profitable growth.
Gothenburg, July 19, 2017
President and CEO
SECOND QUARTER 2017
- Net sales amounted to MSEK 1,510 (1,474), organic growth was -3%
- Operating profit (EBIT) amounted to MSEK 92 (80) and the operating margin (EBIT) increased to 6.1% (5.4)
- Operating profit (EBIT) excluding non-recurring items amounted to MSEK 103 (103) and the operating margin (EBIT) to 6.8% (7.0)
- Net profit for the period amounted to MSEK 39 (42)
- Basic earnings per share amounted to SEK 0.51 (0.55)
- Free cash flow amounted to MSEK -76 (27)
- Net sales amounted to MSEK 2,950 (2,864), organic growth was -1%
- Operating profit (EBIT) amounted to MSEK 151 (133) and the operating margin (EBIT) increased to 5.1% (4.6)
- Operating profit (EBIT) excluding non-recurring items amounted to MSEK 168 (161) and the operating margin (EBIT) to 5.7% (5.6)
- Net profit for the period amounted to MSEK 68 (62)
- Basic earnings per share amounted to SEK 0.88 (0.81)
- Free cash flow amounted to MSEK -82 (34)
Full report is attached to this press release.
Invitation to Telephone Conference on July 19, 09.30 (CET)
To participate in the conference call, please dial in to one of these numbers:
+46 8 5664 2699
+44 20 3008 9809
Agenda for the Telephone Conference
09:25 Call in
09:30 Review of the interim report by Gunnebo’s President and CEO, Henrik Lange, and CFO, Susanne Larsson
09:55 Questions and answers
10:15 Closing of telephone conference
Copies of the presentation will be available 30 minutes prior to the telephone conference on www.gunnebogroup.com. Attending from Gunnebo AB are President and CEO Henrik Lange, CFO Susanne Larsson and SvP Marketing & Communications Karin Wallström Nordén.
A recording of the telephone conference will be available on www.gunnebogroup.com from late afternoon July 19.
GUNNEBO AB (publ)
For more information, please contact:
Henrik Lange, President & CEO Gunnebo AB, tel. +46 10 2095 026, or
Susanne Larsson, CFO Gunnebo AB, tel. +46 10 2095 026, or
Karin Wallström Nordén, SvP Marketing & Communications Gunnebo AB, tel. +46 708 28 33 39
This information is information that Gunnebo AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 08.01 CET on July 19, 2017.
The Gunnebo Group is a global leader in security products, services and solutions with an offering covering cash management, safes and vaults, entrance security and electronic security for banks, retail, mass transit, public & commercial buildings and industrial & high-risk sites.
The Group has an annual turnover of MSEK 6,100, employs 5,400 people and has sales companies in 28 countries across Europe, Middle East & Africa, Asia-Pacific and the Americas as well as Channel Partners on over 100 additional markets.
We make your world safer.