#Sweden #Stockholm #Quarterly Report #ASSA ABLOY #Acquisitions

ASSA ABLOY's Q4 2024 Report: A Year of Resilience and Growth

In the latest quarterly report released on February 5, 2025, ASSA ABLOY showcased an impressive performance, marking significant milestones for the fourth quarter of 2024. The company's net sales surged by 7%, reaching SEK 39,575 million compared to SEK 36,970 million in the same quarter the previous year. This growth was a blend of organic stability and robust contributions from acquisitions, contributing 6% to net growth.

Key Highlights:

Record Operating Income and Cash Flow

ASSA ABLOY reported a record operating income (EBIT) of SEK 6,529 million, reflecting a 14% increase from SEK 5,722 million in Q4 2023, which translated to a noteworthy operating margin improvement of 16.5%.

Moreover, the operating cash flow witnessed a remarkable growth of 10%, reaching SEK 8,010 million, affirming the company's solid financial health. This robust cash flow underlines the effective management strategies employed by the organization and their ability to adapt to the market conditions.

Focus on Acquisitions for Growth

The company completed a total of eight acquisitions in the quarter alone, enhancing its portfolio significantly. These acquisitions added more than SEK 1 billion in annual sales, underlining ASSA ABLOY's strategic push to bolster growth through targeted acquisitions. Over the past year, a record 26 acquisitions were finalized, contributing nearly SEK 8 billion in annualized sales. Such strategic decisions have proven fruitful in navigating the variable market landscape.

Diverse Market Performance

In terms of organic sales performance, various segments performed differently. The Global Technologies division thrived, exhibiting strong growth, especially in the North American market. Organic growth in this sector reached an impressive 5%. In contrast, the Entrance Systems segment faced challenges, showing a decline of 2% compared to the previous year, largely attributed to reduced demand in some markets, particularly in Asia-Pacific, which recorded a significant drop of 11%.

Despite the fluctuations in performance, ASSA ABLOY managed to maintain stability across several regions, especially in the Americas, which posted a 2% growth, affirming the diversified resilience of the company.

Strategic Forward-looking Approach

Looking ahead, ASSA ABLOY has prioritized accelerating organic growth as a foundational strategy. This involves upgrading their installed products with innovative digital and electromechanical solutions, which are forecasted to drive future revenue. The company invested 4% of its annual sales into research and development to enhance its offerings.

Significantly, recurring revenue streams such as subscription-based solutions and service agreements grew by 18% in 2024, indicating a positive trend toward more stable income sources. Emerging markets also displayed promise, with sales allegedly rising by 10%, excluding China, indicating potential growth areas for the firm.

Conclusion

In summary, ASSA ABLOY's Q4 2024 results reflect a remarkable year filled with strategic acquisitions and growth amidst a mixed market environment. With a clear focus on innovation and adaptation, the company is well-positioned to face the challenges ahead while continuing to deliver value to its stakeholders.

As reassured by CEO Nico Delvaux, the collective efforts of the entire team at ASSA ABLOY are instrumental in achieving these milestones, reinforcing the commitment to their customers and shareholders alike. The upcoming updates and continuing developments promise to enhance ASSA ABLOY’s position in the industry, paving the way for future success.