Assa Abloy reported strong second-quarter results for 2023, despite a weak residential market and slower sales in certain regions. Its second-quarter net sales grew by 17%, sales grew organically by 3%, acquired net growth was 6% and currency contributed 8%. Operating income increased by 25% and earnings per share rose by 18%.
Key takeaways
- Net sales increased by 17%, with organic growth of 3% and acquired net growth of 6%. Exchange-rates affected sales by 8%.
- Very strong organic sales growth in Global Technologies, good growth in the Americas, stable in Entrance Systems, while organic sales declined in Asia Pacific and EMEIA.
- The acquisition of Spectrum Brands’ Hardware and Home improvement division was completed in June.
- The divestment of Emtek and Smart Residential business in the U.S. and Canada to Fortune Brands was completed in June.
- Operating income increased by 25%, with an operating margin of 16.0%.
Cost measures
The company has implemented short-term cost measures to protect its profitability in light of lower residential construction levels. Even if there is a short-term deceleration in the market, its long-term growth drivers for access control remain, including the transition to electromechanical products. The company will continue to invest in R&D.
Acquisitions
Assa Abloy acquired five companies in the second quarter of 2023, including Spectrum Brands’ Hardware and Home Improvement division. The total combined acquisition price for the businesses amounted to around $4 billion. It also divested Emtek and the Smart Residential business in the U.S. and Canada to Fortune Brands.
