Securitas’ Interim Report for Q1 2017 outlines total sales (MSEK) of 22 491 (20 614), an organic sales growth of 4% (8) and an operating income before amortisation (MSEK) standing at 1 051 (996). Operating margin is 4.7% (4.8) and earnings per share SEK 1.71 (1.59). Free cash flow/net debt is 0.12 (0.14).
Alf Göransson, president and CEO, commented: “Organic sales growth in the first quarter remained good at 4% on top of an extraordinarily high growth in 2016. Market dynamics in the US remain favourable and we continue to grow faster than the security market, while our ability to deliver complete electronic security solutions is gaining a growing interest in the US market. Our Ibero-American business segment also exhibited strong organic sales growth in the first quarter. Market conditions in Spain improved. We’re gaining market share through our competence at delivering advanced technology and security solutions.”
Göransson continued: “In Europe, total sales were basically on the same level as the first quarter last year, in spite of a few previously communicated large contract terminations and a reduction of the extra sales compared with the unusually high levels experienced in 2016. The organic sales growth was negative in a few large countries, while many others continued to show good organic sales growth. We expect a gradual recovery of the portfolio business towards the end of 2017.”
Operating margin was slightly below last year. It improved in North America, while Europe has some operational overcapacity and negative leverage given the sharp organic sales growth decline in a few countries. Earnings per share improved by 8% with a real change of 3% in the first quarter.
“We continue to deliver on our strategy,” said Göransson, “with security solutions and electronic security continuing to grow at a high pace and becoming a larger part of total Group sales.”
As an important part of the company’s ‘Vision 2020’ strategy, the business is gradually increasing investments in digitising its customers’ historical and real-time data in order to produce more predictive security.
“In combination with our security solutions and our electronic security strategy,” concluded Göransson, “intelligent security will create further customer value and enhanced security, while at the same time strengthening our leadership in the global security market.”