Key & Wall Solutions and OEM
A record year in profitable growth
organic net sales growth
+4.5%
CHF 484.4m
adjusted EBITDA Margin
19.7%
+270 bps
The financial year 2023/24 marked a record in both growth and profitability for Key & Wall Solutions and OEM (KWO). The second half of the financial year was characterized by a recovery in organic net sales growth compared to the first half of the financial year. In addition, the business segment was able to surpass its record level of profitability from the first half of the financial year. It reported total sales of CHF 484.4 million and strong organic net sales growth of 4.5%, of which 1.4% were attributable to price realizations and 3.1% to volume. The main growth drivers were an exceptional performance of the Movable Walls business unit and increased volumes in OEM. The Key Systems business unit recorded a decline in sales.
Key Systems net sales were negatively impacted by softer demand, primarily in North and Latin American markets, and lower demand for key blanks from the residential business in Europe. Key Systems EMEA and India & South-East Asia reported stable net sales. Overall, the business unit recorded a good order intake in the financial year. Due to the reduction in net sales, adjusted EBITDA declined in 2023/24. However, good management of sales & marketing, general and administrative expenses mostly compensated for the lower demand.
Movable Walls continued the path of the first half of the financial year and reported double-digit organic net sales growth for the full year. This was primarily driven by the business unit’s leadership position in the North American market, but all regions contributed to growth while also recording good order intake. Adjusted EBITDA increased in all regions, reaching record levels in America. Extensive operational performance improvements in Europe & Africa also contributed to the positive development.
The OEM business unit, a part of KWO since July 2023, saw low organic net sales growth compared to the previous year. This was in the context of a weaker external market characterized by high inflation, increased pricing pressure, and a challenging economic situation. The business unit was also able to increase its adjusted EBITDA margin.
As a result, Key & Wall Solutions and OEM was able to significantly improve its profitability by 270bps, reporting a record adjusted EBITDA margin of 19.7% (CHF 95.2 million). A strong order book and efficient profitability management will allow the business segment to continue leveraging its market-leading position in Movable Walls and Key Systems.
