Segment Key & Wall Solutions5 min.
Sales growth, higher profitability
The segment Key & Wall Solutions generated total sales of CHF 401.9 million in the financial year 2018/19, representing year-on-year organic sales growth of 2.2%. EBITDA stood at CHF 63.0 million, up 11.1% compared to the previous year; the EBITDA margin improved from 14.6% to 15.7%. This increase mainly resulted from good profitable growth in the Movable Walls business in the US, where higher volumes, price increases, and a better product mix more than offset the impact of raw material inflation.
Working With Limited Space
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Strong growth in Asia could not compensate for lower growth in the other regions in the Business Unit Key Systems. Sales were impacted by a weaker key cutting machine business in Europe and a weaker key replacement business in the US, particularly in the second half of financial year 2018/19. Klaus Group, a business acquired in Peru in May 2018, met expectations by making a positive contribution to growth and by increasing its profitability compared to previous year.
There was strong organic growth in the Movable Walls Business Unit with particular strength of the North American business, but all other regions contributed to growth as well. Acquired in year 2017, the Skyfold business has been successfully integrated and delivered top-line synergies as the business can offer now both, vertical and horizontal movable walls. There was also a positive contribution from the progress of the measures to increase the automatization of its production site in Ocholt (Germany) with the aim to sustainably improve the cost base and efficiency of the European business.
Key & Wall Solutions expects no major change in the business environment in financial year 2019/20.
Growth in the Business Unit Key Systems will benefit from the launch of new products like “SIX”, a next generation high-end electronic key cutting machine, which is expected to launch in the second half of financial year 2019/20. SIX enables faster operations, more automation, and enhanced connectivity for locksmiths.
Furthermore, Key Systems expects initial contributions from the investments into digital initiatives which will put a stronger emphasis on a higher service component. First products will be launched in 2019/20 including “MyKeys Safe”, a digital wallet for residential and automotive keys that offers end users support for lost key situations. With regards to profitability, Key Systems will continue to invest in its operational efficiency including significant investment into its ERP infrastructure in North America.
Supported by a good order book, the Business Unit Movable Walls will continue to focus on profitable growth of its businesses in the US as well as in Asia. In Germany, the Business Unit will finalize the automatization of its production site with the aim to sustainably improve the cost base and efficiency of the European business.
Skyfold is expected to continue to contribute positively to growth and profitability. There is significant potential to transform the vertical Movable Walls business which is still very North American centric to a true global business. This business case is supported by first successful orders from Europe, China, and the Middle East.
Key figures – segment Key & Wall Solutions
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Financial year ended 30.06.2019
Financial year ended 30.06.2018
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