Region Europe & Africa

5 min.

Region Europe & Africa is comprised of the former segments AS EMEA and AS DACH excluding the Market Middle East. All figures were consolidated according to the new operating model. To ensure comparability, dormakaba will disclose the comparable figures of the former operating model in the Notes to the Consolidated Financial Statements for the full financial year 2021/22.

Region Europe & Africa achieved total sales of CHF 1,144.5 million in the financial year 2021/22 compared to CHF 1,105.8 million during the same period of the previous year.

Organic sales grew by 5.9% compared to the previous year despite supply chain constraints and scarcity of electronic components, the impact of the war in Ukraine, and project delays due to external construction site delays (labor and supply chain constraints of other materials) that limited overall growth potential.

All Markets experienced solid growth. Market CEERT (Central Eastern Europe, Russia, and Turkey) delivered double-digit growth despite negative growth in Russia and Ukraine. There was high single-digit growth in Germany and Austria, as well as in the UK, Benelux, Scandinavia, and Market South. Scandinavia continued to benefit from the successful turnaround in Norway with both stronger growth and higher profitability as well as strong Entrance Systems sales growth in Sweden. South benefited from strong growth in product and service sales. All major Markets continue to report healthy order intakes.

All Product Clusters showed solid sales growth driven by double-digit growth for Door Hardware and automatic doors whereas growth in Electronic Access & Data, despite continued strong order intake was limited by the shortage of electronic components, display boards and chips.

Adjusted EBITDA increased by 1.2% to CHF 235.9 million compared to the previous year, which represents an adjusted EBITDA margin of 20.6% (previous year: 21.1%). The adjusted EBITDA margin gained from higher sales volumes, price increases, operational efficiencies and effective cost management. However, these favorable impacts could not fully offset the inflationary pressure on labor, energy, freight and raw material, the margin dilution from lower high-margin Electronic Access & Data sales as well as labor shortage that caused higher reliance on sub-contractors. The impact of inflationary pressure was more pronounced in the second half of the year, especially following the impact of the war in Ukraine and with the timing discrepancy between price realization and cost increases.

Region Europe & Africa expects continued growth in 2022/23 based on a strong order book and a solid project pipeline across major markets, such as major contracts with Avinor to deliver self-boarding gates, one-way corridors and related services for all Norwegian airports, and the REWE Group in Austria, the national supermarket chain.

Growth continues to be supported by the acquisition of Fermatic (France), which was completed in October 2021 and substantially strengthened the Services business footprint in France. The Region will continue to expand its Services footprint both through organic as well as inorganic growth. A recent example is the acquisition of Alldoorco (Holland) in August 2022, a company specialized in the maintenance, repair, and new installation of industrial door systems. The acquisition will strengthen the Region’s core business in the important Dutch market.

Europe & Africa will continue to focus on profitable growth and in line with the Shape4Growth strategic focus on customer-centricity, leadership in core countries and core products, sales excellence, price realization, and consolidation of smaller countries into regional structures as well as operational efficiency gains.

As part of pricing excellence, there will be a particular focus on continued sales price realization to strive to compensate for higher raw material, energy, labor, and freight costs.

In addition, the new strategy targets higher R&D productivity by focusing on our global core offering to develop open, interoperable platform solutions. An example of such an innovative offering is EntriWorX a solution that supports smart planning processes for buildings, simple installation of door solutions, and secure, smooth operation of these applications. EntriWorX, was launched in April 2021 and the business could already gain first major projects. Growth will be supported by a strategic partnership with Schüco, one of Europe’s market leaders in windows, doors, facades, and smart buildings. Under the partnership agreement, dormakaba and Schüco will work together to accelerate strategic development projects in digitalization and access control.

Key figures – Region Europe & Africa

Sales (CHF million) - Region Europe & Africa