organic net sales growth
+4.4%
CHF 2,440.7m
adjusted EBITDA margin
15.7%
+50 bps
The Access Solutions business segment reported good organic net sales growth of 4.4% and total sales of CHF 2,440.7 million. Price realizations contributed +1.5%, while volumes increased further and grew by 2.9% over the previous year, supported by project wins in key verticals such as airports, healthcare, and hospitality. The business segment also saw an increase in data center projects, with over 15 projects won in North America and Asia. The recent acquisition of TANlock in Germany will further strengthen dormakaba’s offering for this fast-growing vertical.
All core markets contributed to the positive organic net sales growth. Germany continued to significantly outperform the market and grew organically by 7.4%. The country reported a strong automatics business and market share gains in hardware solutions as a result of dormakaba’s comprehensive product portfolio and focused go-to-market strategy.
North America achieved solid organic net sales growth of 4.2% (amid a tough comparison base) driven by several project wins in the hospitality and airports verticals. Furthermore, dormakaba became an approved supplier for a leading performance improvement organization in the healthcare sector, which will support future growth for the company in this important vertical going forward.
Switzerland delivered strong organic growth of 4.2%, gaining market share in the healthcare segment by focusing on cross-selling and hybrid solutions. United Kingdom/Ireland continued its exceptional performance from the first half of the financial year, and recorded organic growth of 9.7% for the full year, supported by underlying industry growth and project wins in hospitality as well as the airport vertical. Australia/New Zealand recorded organic growth of 2.3% in a softer market environment.
dormakaba’s business in India maintained its strong momentum, recording double-digit organic growth. China closed the year with a high single-digit organic net sales growth. Through the newly formed joint venture with construction hardware provider Kinlong, dormakaba will enhance its go-to-market strategy in the rapidly growing hospitality vertical in China.
The Rest of the World markets recorded solid organic net sales growth, with mid to high single-digit growth rates in the Netherlands and France as well as very strong, primarily volume-driven rates in mid-sized markets such as Italy, Iberia, and Eastern Europe. Singapore and Southeast Asia faced a tough comparison base and reported a decline in net sales.
Adjusted EBITDA for Access Solutions increased to CHF 382.6 million, achieving an adjusted EBITDA margin of 15.7%, representing a further increase of 50 bps. Significant progress in the transformation program resulted in tangible cost savings, particularly towards the end of the financial year, as the benefits from the shared service center migration began to materialize.