- Total sales MSEK 26 499 (26 556)
- Organic sales growth 8 percent (–4)
- Operating income before amortization MSEK 1 471 (1 075)
- Operating margin 5.6 percent (4.0)
- Items affecting comparability (IAC) MSEK –259 (–61), relating to the previously announced transformation programs and the cost-savings program in the Group
- Earnings per share SEK 2.09 (1.50)
- Earnings per share, before IAC, SEK 2.64 (1.62)
- Cash flow from operating activities 63 percent (248)
- Total sales MSEK 52 313 (54 976)
- Organic sales growth 4 percent (–1)
- Operating income before amortization MSEK 2 727 (2 161)
- Operating margin 5.2 percent (3.9)
- Items affecting comparability (IAC) MSEK –395 (–106), relating to the previously announced transformation programs and the cost-savings program in the Group
- Earnings per share SEK 3.95 (3.11)
- Earnings per share, before IAC, SEK 4.75 (3.32)
- Net debt/EBITDA 2.2 (2.1)
- Cash flow from operating activities 81 percent (141)
Comments from the President and CEO
“A strong quarter throughout the Group”
THE IMPLEMENTATION OF THE STRATEGY PAYS OFF, WHILE WE CONTINUE TO MANAGE EFFECTS FROM COVID
The performance of the Group proves that our strategy is paying off. We continue to execute on our strategy and transform the company:We have sharpened the business over the last year through focus on profitability and cost management to create healthy margins in the overall business, including aviation.
The transformation programs are being implemented according to plan and we are now seeing benefits in practice.
We are seeing positive developments in our solutions and electronic security business, and it is a clear focus area to further accelerate the growth momentum.
PROFITABLE GROWTH IN FOCUS
The Group’s organic sales growth in the second quarter was strong at 8 percent (–4), with all business segments showing 8 percent organic sales growth. Our performance in the second quarter of 2021 was solid across the Group. Commercial activity and sales momentum is picking up in all of our business segments as lock-downs and restrictions are easing.
The airport security business is gradually recovering and we continue to improve profitability by carefully reviewing every contract. Sales of security solutions and electronic security represented 22 percent (21) of total sales in the second quarter, with a real sales growth of 11 percent (0).
The operating result for the Group, adjusted for changes in exchange rates, increased by 50 percent in the second quarter and the operating margin was 5.6 percent (4.0). The positive effects from our strategy and the gradually improved business environment strengthened all our business segments, also supported by normal cost levels of provisioning for potential bad debt compared to the high levels last year and by the cost-savings program initiated during 2020.
Total price adjustments in the Group were on par with wage cost increases in the second quarter, in spite of a challenging labor situation particularly in the US, with shortage of labor and wage pressure. Support from government grants relating mostly to employees on temporary unemployment continued, but on a lower level in line with the development of the corona pandemic.
In the past 12 months we have sharpened our business by increased focus on contract profitability. We are reviewing the contract portfolio in all business segments. Further, we reduced complexity through the exit of 11 countries, of which 10 exits now are completed.
The Group delivered a good cash flow in the second quarter, supported by a strong focus on accounts receivable.
POSITIONED FOR CONTINUED COVID UNCERTAINTIES
The corona pandemic continues to be in focus in our day-to-day operations as we close the second quarter of 2021. While uncertainty remains regarding the long-term consequences of the pandemic, we are coming out stronger thanks to having taken action early. Together with solid finances we have strength to tackle further challenges and execute on our strategy.
COMMITTED TO TRANSFORMATION TARGETS
We are beginning to reap the benefits of our transformation program in North America initiated in 2019, with some positive contribution to the operating margin development in the business segment in the second quarter. In addition, the business transformation programs in Europe and Ibero-America are progressing according to plan. We are confident that with these programs we will continue to change the business mix and we are fully committed to achieve the margin targets related to the programs.
Today we announced the acquisition of Protection One, a market leading solutions and electronic security company in Germany. During 2020, we acquired electronic security companies in eight focus markets. These acquisitions and their integration develop well and contribute to our ambition of doubling our security solutions and electronic security business. We continue to actively explore further acquisition opportunities.
We have delivered a strong performance in the Group in the first six months of 2021. The Securitas team has continued to show great resilience in a challenging situation, and the strength of the team and the progress of our business transformation confirms the direction and ambition for the years ahead.
President and CEO, Securitas