Gunnebo Interim Report January-March 2017
Comments on the first quarter by Gunnebo’s President and CEO, Henrik Lange
The first quarter was a good start to the year with a turnover of MSEK 1,440 and an operating margin of 4.5% excluding non-recurring items. The operating margin in EMEA continues to improve further.
DEVELOPMENT IN THE REGIONS
Region EMEA showed organic growth of 2% in the first quarter. Sales were good in almost all sub-regions whereas development in France, UK and South Africa was weaker. The operating margin continues to improve as a result of restructuring efforts. Gunnebo will continue to focus on increased productivity and structural changes in the European organisation during 2017.
In Region Asia-Pacific sales were down and there was negative organic growth of 8% in the first quarter. This follows five quarters of positive organic growth. The main reason for the decrease is the continued weakness in the banking market in India, and in Indonesia where the large OKI project is now coming to an end. Sales remained strong in China, mainly due to a favorable development in Entrance Security.
Region Americas showed organic growth of 3% in the first quarter. Sales developed positively in North America, while they were unchanged in South America, mainly due to an uncertain investment climate in Mexico.
SALES DEVELOPMENT IN THE PRODUCT AREAS
Sales were positive within Cash Management. The roll-out of the SafePay closed cash management solution continued in Europe and sales have developed well in North America and Asia.
Within Entrance Security the positive trend in sales continued in the first quarter of 2017 with increasing sales to public transport and public buildings.
Within Safes & Vaults, sales of certified safes were positive in the first quarter, except in India, where sales to public banks were down because of low demand. Sales of ATM safes remained unchanged.
In Electronic Security, quarterly sales were slightly lower than last year due to lower sales in both Europe and Mexico.
RESULT DEVELOPMENT Q1 2017
For the first quarter, despite an organic sales growth of 0%, the Group reports an operating profit excluding non-recurring items of MSEK 65 and an operating margin of 4.5%. With a good start to the year we are now equipped to continue the implementation of the Group’s strategy for profitable growth.
FIRST QUARTER 2017
• Net sales amounted to MSEK 1,440 (1,390), organically they were flat
• Operating profit (EBIT) amounted to MSEK 59 (53) and the operating margin (EBIT) increased to 4.1% (3.8)
• Operating profit (EBIT) excluding non-recurring items amounted to MSEK 65 (58) and the operating margin (EBIT) to 4.5% (4.2)
• Net profit for the period increased to MSEK 29 (20)
• Basic earnings per share increased to SEK 0.37 (0.26)
• Free cash flow amounted to MSEK -6 (7)
Full report is attached to this press release.
Invitation to Telephone Conference on April 28, 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 April 28.
GUNNEBO AB (publ)
Group Communication
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 April 28, 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 5,600 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.
Tags: