Segment Access Solutions EMEA5 min.
Organic sales growth, higher profitability
AS EMEA generated total sales of CHF 374.5 million for the first half of financial year 2019/20 and organic sales growth of 1.4% compared to the previous year. EBITDA amounted to CHF 30.4 million, an increase of 1.3% over the last year’s figure. The EBITDA margin was higher at 8.1% (previous year 7.9%). The increase in EBITDA was mainly driven by higher sales volumes and lower product development costs despite negative product mix impacts and lower fixed cost absorption in certain markets.
AS EMEA’s sales growth was driven by high single-digit growth rates in Central and Eastern Europe, with particularly good growth for Poland, Bulgaria and Turkey, where the business gained several new projects and market demand was strong. The UK and Benelux as well as Southern Europe contributed to organic growth; sales in France were above previous year’s level, despite the current political volatility.
Sales in the Middle East and Africa were below previous year as strong growth in Saudi Arabia could not compensate for a base effect in Qatar and challenging political and business conditions in both the Middle East and South Africa.
Overall sales in Scandinavia were below previous year’s level particularly due to the weak performance in Norway where the company has lost market share. The business has been restructured, with centralization of certain functions such as finance, procurement and customer care. The sales organization and the leadership have been reorganized.
The Product Clusters Entrance Systems, Services and Mechanical Key Systems contributed the most to growth, with strong sales to retail chains in Russia and airports including Heathrow (UK) and Schiphol (NL). Lodging Systems benefited from deliveries to a major UK hotel chain, among others.
In the second half of 2019/20, the strategic focus will be on specifications and selected verticals such as healthcare, airports and hospitality to better meet customer needs, and on continued growth of the project and services businesses. In addition, the segment will continue to prioritize the recovery of its Scandinavian business. As of 1 January 2020, the segment AS EMEA is led by a new COO, Steve Bewick.
Key figures – segment AS EMEA
CHF million, except where indicated
Reporting half-year ended 31.12.2019
Reporting half-year ended 31.12.2018
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