Gunnebo Year-end Release 2018

Strong Cash Flow and Continued Sales Growth in Q4

CEO Comments on performance for the Quarter – Continuing Operations
"During the fourth quarter, the Group’s sales growth was 6%, coming from growth in all four Business Units of Safe Storage, Cash Management, Entrance Control and Integrated Security.

Safe Storage grew by 8% mainly driven by strong sales of SafeStore Auto and continued strong sales of ATM safes. Cash Management grew by 12% due to very strong sales of closed cash management, SafePay, and CIT solutions. Entrance Control continued to grow and increased by 3% in the fourth quarter, mainly driven by strong sales to metros, airports and public & commercial buildings. Sales in Integrated Security grew by 1% based on improved sales in the Americas.

EBITA increased in Cash Management and Entrance Control with improved operating margins and was stable in Safe Storage. Integrated Security achieved a small profit after some loss-making quarters. One of our priorities is to work with the various businesses in Integrated Security to improve performance going forward.

Free cash flow was strong in the quarter at MSEK 133 (71) of which MSEK 88 came from improved working capital which is a focus area for us.

During the quarter we have closed the divestment of our businesses in France, Belgium and Luxembourg. We have also continued to focus on our main Business Units and as a consequence of this strategic shift we have divested an Integrated Security business in the UK.  

Performance for the Full Year – Continuing Operations
For the full year 2018 the Group’s sales growth ended at 3% with double-digit growth for Entrance Control and single-digit growth for Safe Storage and Cash Management, while Integrated Security contracted by 5%.

The EBITA for Safe Storage, Cash Management and Entrance Control improved by close to MSEK 60 while Inte-grated Security had a lower EBITA in 2018 due to fewer and less profitable big projects in 2018 compared to 2017. Free cash flow for the full year was MSEK 124 (-74), an improvement of MSEK 198. The working capital improved by MSEK 287 compared to last year.

With the new Business Unit focus in Gunnebo and the start of the divestments of the larger non-core business-es in 2018, we are prepared to continue driving a clear business agenda going forward which will generate profitable growth.

Gothenburg 6 February, 2019

Henrik Lange
President & CEO

FOURTH QUARTER 2018*

• Net sales amounted to MSEK 1,420 (1,300), sales growth was 6%
• EBITA amounted to MSEK 110 (120) and the EBITA margin to 7.7% (9.2)
• Operating profit (EBIT) amounted to MSEK 67 (93) and the operating margin (EBIT) was 4.7% (7.2)
• Net profit for the period amounted to MSEK 22 (64)
• Basic earnings per share amounted to SEK 0.27 (0.76)
• Free cash flow amounted to MSEK 133 (71)

FULL YEAR 2018*

• Net sales amounted to MSEK 5,128 (4,861), sales growth was 3%
• EBITA amounted to MSEK 344 (375) and the EBITA margin to 6.7% (7.7)
• Operating profit (EBIT) amounted to MSEK 265 (301) and the operating margin (EBIT) decreased to 5.2% (6.2)
• Net profit for the period amounted to MSEK 120 (152)
• Basic earnings per share amounted to SEK 1.57 (1.90)
• Free cash flow amounted to MSEK 124 (-74)
• Dividend per share (proposed): SEK 0.50 (1.20)

*Continuing Operations

Full report is attached to this press release.

Invitation to Telephone Conference on 6 February 09.30 (CET)
To participate in the conference call, please dial in to one of these numbers:

+46 8 5664 2662
+44 20 3008 9803

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 6 February.

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 6 February 2019.

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 business units: Safe Storage (36% of Group sales), Cash Management (21% of Group sales) Entrance Control (20% of Group sales), and Integrated Security (23% of Group sales).

In 2018, Gunnebo had a turnover of MSEK 5,100 generated by 4,500 employees located in 25 countries across Europe, the Middle East, Africa, Asia-Pacific and the Americas. 

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