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Securitas AB Full Year Report 2024 Overview

In a remarkable demonstration of resilience and strategic execution, Securitas AB concluded the fiscal year 2024 with impressive financial metrics. Total sales for the fourth quarter amounted to MSEK 41,794, showing an increase from MSEK 39,542 in the previous year. The company recorded an organic sales growth of 4%, albeit down from 6% in the prior quarter. Real sales growth in the technology and solutions segment stood at a notable 6%, indicating a robust demand for their advanced services.

For the entire year, Securitas' total sales hit MSEK 161,921, a rise from MSEK 157,249 in 2023. The organic sales growth for the year was 5%, with a substantial real sales growth of 6% in technology and solutions—an area that has become increasingly crucial to the company’s strategy. The operating income before amortization reached MSEK 11,200, up from MSEK 10,247, while the operating margin improved to 6.9%, compared to 6.5% the previous year.

Financial Highlights

• - Earnings Per Share: The earnings per share increased considerably to SEK 9.01 from SEK 2.24 in 2023, equating to a growth of 15%. The earnings before items affecting comparability reached SEK 10.81, showcasing solid profitability.
• - Cash Flow: The operational cash flow for the year stood at 84%, reflecting Securitas' commitment to strong cash generation and financial health.
• - Dividend Proposal: For the fiscal year of 2024, the proposed dividend is SEK 4.50 per share, demonstrating the company’s dedication to returning value to its shareholders.

Strategic Achievements

Magnus Ahlqvist, President and CEO of Securitas, highlighted that the fourth quarter's success was primarily due to the performance in the European security services sector, accompanied by strong results in North America. The improvement in margins for newly signed contracts was attributed to a refined client offering and enhanced service delivery.

Securitas has invested heavily in digital transformation, aiming to modernize its operations. The conclusion of the STANLEY Security integration program marks a pivotal moment, paving the way for heightened operational delivery and customer engagement. Moreover, the company is on track with its transformation programs aimed at developing a more digitized and effective operational structure.

In 2024, Securitas took significant steps to streamline its costs, with plans to achieve a reduction of MSEK 200 annually by the end of 2025 in Europe alone. This initiative aims to enhance operational efficiency across its services while preparing the company for future growth opportunities.

Looking to the Future

As Securitas moves forward, it remains focused on maintaining its competitive edge through improved operational effectiveness and an enhanced service portfolio. The strategy includes a careful assessment of its market presence to ensure sustainable profitability. The decision to divest the airport security business in France illustrates a commitment to reallocating resources to more profitable avenues.

Ahlqvist expressed pride in the Securitas team's achievements, affirming that while the year presented challenges, the company successfully executed its strategic vision. Looking ahead, Securitas targets an 8% operating margin by the end of 2025, a realistic yet ambitious goal as the global security environment continues to evolve.

Conclusion

In conclusion, Securitas AB's fiscal year 2024 outcomes reflect a solid performance against a backdrop of global uncertainty. The company’s proactive approach in enhancing service delivery and operational efficiency positions it well for sustained success. With a robust plan in place, Securitas is set to continue its transformation into a leading intelligent security partner, creating lasting value for its clients and stakeholders alike.