Securitas has published its financial results for the period January-June 2019. Total sales stand at MSEK 54 428 (48 822), with an organic sales growth of 6%. Operating income before amortisation is MSEK 2 667 on an operating margin of 4.9%.
Earnings per share are SEK 4.25 (4.17), with free cash flow/net debt at 0.14. For the period April-June this year, total sales are MSEK 27 684. Organic sales growth is at 5%. Operating income before amortisation stands at MSEK 1 377 on an operating margin of 5.0%. Earnings per share are SEK 2.18.
Commenting on these latest financials, Securitas president and CEO Magnus Ahlqvist explained: “North America delivered solid organic sales growth despite strong comparatives. In Europe, organic sales growth was hampered by a few large guarding contract losses during the second quarter in what is a competitive business environment. We grew faster than the security market in general during the first six months of 2019 despite a slowdown in a few countries in Europe. Security solutions and electronic security sales grew by 15% in the first half of the year and now represent 21% of total Group sales.”
Ahlqvist continued: “The operating margin in the second quarter was unchanged at 5.0%. It was also unchanged in the first half year at 4.9%, with a strong performance in North America. Europe and Ibero-America were flat. In Europe, we had challenging labour conditions and were not able to fully offset wage cost increases through price increases in two countries. Managing the price and wage balance, and cost efficiency, will remain key focus areas for us throughout the year.
Ahlqvist went on to comment: “The operating margin in Europe was supported by the cost savings programme initiated during 2018 which developed according to plan. Adjusted for changes in exchange rates, the operating result grew by a total of 7%.”