Group Performance

Strong organic net sales growth and margin expansion

dormakaba achieved strong organic net sales growth and significantly expanded its adjusted EBITDA margin in the financial year 2023/24. Net profit was influenced by one-off restructuring charges by the Shape4Growth Transformation program.

In the financial year 2023/24, dormakaba’s net sales grew organically by 4.7%, driven by higher pricing (+2.8%) and volume (+1.9%); the latter showed even stronger development in the second half of the financial year. This strong organic growth was achieved in a demanding economic environment characterized by ongoing inflation, high interest rates, and geopolitical tension. Both business segments, Access Solutions (AS) and Key & Wall Solutions and OEM (KWO), contributed to organic sales growth and business expansion. The appreciation of the CHF against all major currencies led to a negative currency translation effect of 4.9% resulting in total sales of CHF 2,837.1 million, a decline of 0.4%.

dormakaba expanded its adjusted EBITDA margin significantly during the financial year. The company closed 2023/24 with an adjusted EBITDA of CHF 416.9 million and an adjusted EBITDA margin of 14.7%. Not only does this represent a 120bps margin increase over the previous year, it also marks a continuous margin improvement over the last four semesters.

dormakaba is on track to deliver on its mid-term targets. Execution of the transformation program that was announced on 3 July 2023 significantly contributed to the expansion of adjusted EBITDA margin through operational efficiency and procurement initiatives. Three shared service centers were established: Nogales (Mexico) for North and Latin America, Sofia (Bulgaria) for Europe, and Chennai (India) for Asia Pacific. These centers are fully operational. Several countries have been already successfully transitioned to the shared service centers.

Agreements with employee representatives were reached in Germany, Switzerland, and Austria. This enables dormakaba to enter the execution phase of major transformation initiatives concerning the operations footprint and the transfer of tasks to the shared service centers, and to realize the corresponding cost savings. dormakaba incurred one-off restructuring expenses and overall items affecting comparability (IAC) at EBITDA level of CHF 123.8 million. The impact of goodwill amortization on EBIT amounted to CHF 49.5 million; adjusted EBIT was therefore CHF 344.0 million. Net profit, at CHF 82.2 million, was additionally impacted by a higher tax-rate of 38.7%, driven mainly by tax non-deductible goodwill amortization and restructuring expenses in Germany.

In the financial year 2023/24 dormakaba delivered a solid free cash flow of CHF 204.6 million, an increase of 15.9% over the previous year. Strong operational performance was the major driver of this development, and the sale of investments in associates also contributed positively.

Key balance sheet figures

Net working capital as a percentage of net sales increased slightly from 24.4% to 24.8%. The strong organic net sales growth led to an increase in accounts receivable, partially offset by increased accounts payable. Cash and cash equivalents increased by 23.2% and ended the year at CHF 150.4 million. A solid free cash flow of CHF 204.6 million allowed dormakaba to significantly reduce its current borrowings from CHF 119.1 million to CHF 6.2 million. dormakaba has a strong debt profile with the only remaining maturities being the two bonds due in October 2025 and 2027. As a result, net debt decreased to CHF 454.8 million with a resulting net debt to adjusted EBITDA ratio of 1.1x. Return on capital employed (ROCE) increased substantially by 390bps to 29.0%, profiting from improved average net working capital and increased adjusted EBIT.

Strong organic net sales growth and margin expansion in both business segments

Both business segments, Access Solutions and Key & Wall Solutions and OEM, performed well and were able to support dormakaba’s development in line with its mid-term targets.