Segment Access Solutions EMEA
Growth in sales and profitability
Operational performance
AS EMEA generated total sales of CHF 381.1 million for the 1st half of financial year 2018/19 and organic sales growth of 3.1% compared to the previous year. EBITDA amounted to CHF 30.0 million, an increase of 4.5% over the last year’s figure. The EBITDA margin was higher at 7.9% (previous year 7.6%) driven by operational improvements, higher volumes and higher sales prices which overcompensated higher expenditures in business development and higher IT costs for the roll-out of global applications.
Market development
Organic growth was driven by double-digit growth in Central and Eastern Europe, especially Russia. Southern Europe enjoyed growth as well, sales in France were above previous year’s level, despite the current political volatility. In the UK, the Services business showed good growth, which more than offset a weaker general demand. The segment’s UK organization is currently preparing for the potential impact of a hard Brexit and has increased, amongst other measures, its inventory levels.
Sales in Scandinavia were below previous year. Sales in the Middle East slightly increased driven by demand in the UAE and Qatar, whereas sales in Saudi Arabia were below previous year’s level.
Product Clusters such as Entrance Systems, Door Hardware, Services and particularly Lodging Systems contributed to growth. Electronic Access & Data contributed to growth as well, driven by new projects like the Doha Oasis project in Qatar where Electronic Access & Data and Lodging Solutions are combined to an attractive offering for the customers. Safe Locks and Interior Glass Systems were below prior year’s level.
The segment expects further EBITDA margin improvement potential driven by improved organizational efficiencies and will continue to invest substantially in its IT infrastructure as part of the enterprise excellence and digitalization strategy. In addition to the ERP roll-out, AS EMEA has successfully launched a new management platform for the Services business, which will increase the customer visibility and efficiency and contribute to further growth. Implementation of this new software platform is progressing in individual countries; the latest example is the successful roll-out in Norway.
Key figures - segment AS EMEA
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in CHF million |
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Reporting half-year ended 31.12.2018 |
in % |
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Reporting half-year ended 31.12.2017 |
in % |
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Change on previous year in % |
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Net sales third parties |
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322.1 |
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315.8 |
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2.0 |
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Intercompany sales |
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59.0 |
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60.0 |
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Total segment sales |
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381.1 |
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375.8 |
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1.4 |
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Change in segment sales |
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5.3 |
1.4 |
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21.6 |
6.1 |
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Of which translation exchange differences |
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–7.9 |
–2.1 |
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11.7 |
3.2 |
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Of which acquisition (disposal) impact |
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1.5 |
0.4 |
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0.5 |
0.2 |
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Organic sales growth |
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11.7 |
3.1 |
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9.4 |
2.7 |
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Operating profit before depreciation and amortization (EBITDA) |
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30.0 |
7.9 |
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28.7 |
7.6 |
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4.5 |
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Average number of full-time equivalent employees |
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3,383 |
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3,366 |
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Net sales (in CHF million) - segment AS EMEA
