Fourth Quarter Highlights:
- Net Sales Growth: Sales increased by 12% to SEK 36,970 million, with organic growth remaining stable at 0% and acquired growth contributing 11%.
- Regional Performance: Strong organic growth in the Americas and Entrance Systems, with declines in Asia Pacific, EMEIA, and Global Technologies.
- Acquisitions: Signed six acquisitions with combined annual sales of SEK 900 million.
- Operating Income: EBIT rose by 11% to SEK 5,722 million, with a margin of 15.5%, reaching 16.8% when excluding certain transactions.
- Net Income: Increased to SEK 3,969 million.
- Earnings Per Share: Grew to SEK 3.56.
- Operating Cash Flow: Reached a record SEK 7,315 million.
- Dividend Proposal: A dividend of SEK 5.40 per share for 2023, distributed in two equal installments.
CEO’s Comments:
Nico Delvaux, President and CEO, expressed pride in ASSA ABLOY’s achievements in 2023, highlighting the company’s record financial results in a year of slower economic growth. The company’s organic sales grew by 3%, complemented by an 8% net growth from acquisitions, with an improved operating margin of 15.8%.
In Q4, the company maintained its operating margin at 16.8%, excluding the HHI transaction, demonstrating the agility and resilience of its business model and effective cost control. Sales growth of 12% was driven by positive organic growth and acquisitions, with notable performance in the Americas and Entrance Systems.
Looking Ahead to 2024:
- Strategic Focus: Accelerating profitable growth, leading the transition to electromechanical and digital products and solutions, which saw over 10% organic growth in the past year.
- Acquisitions: Integration of HHI and realization of synergies, with 24 acquisitions completed in 2023 adding approximately SEK 10 billion in sales.
- Operational Efficiency: Continued focus on cost control and operational optimization, including a new manufacturing footprint program set to launch by the end of 2024.
ASSA ABLOY remains committed to navigating the uncertain macroeconomic environment with agility and cost control, while capitalizing on opportunities for growth in electromechanical and digital solutions. The company looks forward to another exciting year with promising prospects for growth and innovation.ChatGPT can make mist