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Gunnebo Interim Report July - September 2018

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Strong Growth and Continued Streamlining

CEO Comments to Performance in the Quarter - Continuing Operations
During the third quarter, the Group’s organic growth was 6%, coming from the core Business Units Entrance Control, Safe Storage and Cash Management. Both Entrance Control and Safe Storage showed double-digit growth. 

Entrance Control reported strong 17% sales growth for the quarter due to a very strong development of its business in all regions. Safe Storage also had strong sales growth for the quarter of 15%, mainly coming from the global ATM safes business and good development in the US. Cash Management, reporting a 2% sales growth, had a strong quarter in Asia-Pacific, Middle East and Europe, but weaker development in the US. Sales in Business Unit Integrated Security declined, mainly due to the fire project in South-East Asia which was delivered last year and has now been finalised.

During the third quarter we have continued to streamline the business and shift our focus from region to product. It is encouraging to see that the results for continuing operations improved, and we reported an EBITA of MSEK 92 with a margin of 7.1% for the quarter.

As part of the increased focus on the main Business Units, a small local alarm monitoring business in Spain has been divested during the quarter and an additional profit of MSEK 21 was recorded as items affecting comparability for the Group. Free cash flow improved by MSEK 78 for the quarter.

Performance in the Quarter - Discontinued Operations
In the third quarter, the ongoing divestment has been subject to works council consultation, which has successfully been completed. Full closing is expected to take place in quarter four after antitrust clearance.

Discontinued operations recorded sales of MSEK 242 and an EBIT of MSEK -41. The net loss was MSEK -45.

Capital Market Day November 15
Gunnebo will host its annual Capital Markets Day on November 15 in Stockholm. The agenda will focus on an update of Gunnebo’s strategic agenda and financials, as well as presentations of the three core Business Units, Safe Storage, Cash Management and Entrance Control. 

Gothenburg 23 October, 2018

Henrik Lange
President & CEO


THIRD QUARTER 2018

  • Net sales amounted to MSEK 1,303 (1,164), sales growth was 6%
  • EBITA amounted to MSEK 92 (85) and the EBITA margin to 7.1% (7.3)
  • Operating profit (EBIT) amounted to MSEK 88 (63) and the operating margin (EBIT) increased to 6.8% (5.4)
  • Net profit for the period amounted to MSEK 56 (25)
  • Basic earnings per share amounted to SEK 0.74 (0.33)
  • Free cash flow amounted to MSEK 15 (-63)


YEAR TO DATE 2018

  • Net sales amounted to MSEK 3,708 (3,561), sales growth was 2%
  • EBITA amounted to MSEK 234 (255) and the EBITA margin to 6.3% (7.2)
  • Operating profit (EBIT) amounted to MSEK 198 (208) and the operating margin (EBIT) decreased to 5.3% (5.8)
  • Net profit for the period amounted to MSEK 98 (88)
  • Basic earnings per share amounted to SEK 1.30 (1.14)
  • Free cash flow amounted to MSEK -9 (-145)

 

Full report is attached to this press release.

Invitation to Telephone Conference on 23 October 09.30 (CET)
To participate in the conference call, please dial in to one of these numbers:

+46 8 5664 2662

+44 20 3008 9802

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 latest 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 23 October.

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

 www.gunnebogroup.com
 
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 23 October, 2018. 

Gunnebo AB (publ) is a leading, global security provider offering a range of sustainable security products, services and software to retail, mass transit, public and commercial buildings, industrial and high-risk sites, and banks. Gunnebo operates within four core business units: Safe Storage (35% of Group sales), Cash Management (22% of Group sales) Entrance Control (20% of Group sales), and Integrated Security (23% of Group sales). In 2017, Gunnebo continuing operations had a turnover of MSEK 4,900 generated by 4,400 employees located in 25 countries across Europe, the Middle East, Africa, Asia-Pacific and the Americas.

The discontinued business represented MSEK 1,130 turnover with 930 employees in three countries.

Gunnebo’s share (GUNN) is traded on NASDAQ Stockholm under Mid Cap and Industrials.

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