ASSA ABLOY released its quarterly report for the second quarter of 2021 and noted significant sales growth and margin recovery. According to the release, “net sales increased by 19% to SEK 23,648 M (19,953), with strong organic growth of 23% (–18) and acquired net growth of 5% (3). Currency effects amounted to –9% (0).” EMEIA, Americas, Entrance Systems and Global Technologies reported “very strong organic sales growth” and stable sales growth for Asia Pacific.
“Four acquisitions with combined annual sales of about SEK 400 M were signed, operating income (EBIT) increased by 71% and amounted to SEK 3,589 M (2,097), corresponding to an operating margin of 15.2% (10.5),” according to the release.
Nico Delvaux, president and CEO of ASSA ABLOY, noted the parallel between markets opening up and vaccines rolling out to combat the pandemic.
Delvaux said along with the sharp drop in activity level last year, there has been a record organic sales growth of 23% in the second quarter.
“Our acquisition strategy will also continue to boost our topline and we signed four acquisitions in the quarter,” said Delvaux. “Two of these, Sure-Lock in the U.S. and MR Group in Portugal, strengthen our position in the mature markets with products and solutions that complement our core mechanical business. We have also recently announced the divestment of our locksmith business CERTEGO in the Nordic market. This will streamline EMEIA’s channels to the market in the Nordic region and the transaction will be accretive for our operating margin.”
“Since raw material costs have continued to increase during the second quarter we have continued to implement numerous price increases that largely offset the cost impact. During the quarter we have also worked hard to address the shortage of some components. Thanks to excellent operational execution, we were able to manage the different component shortages and logistical constraints in an efficient way, while maintaining our customer service at a high level.”