Key & Wall Solutions

5 min.

Key & Wall Solutions is equivalent to the segment of the same name in dormakaba’s former operating model. All figures in this report have been consolidated according to the new operating model; to ensure comparability, dormakaba discloses the comparable figures of the former operating model in the Notes to the Consolidated Financial Statements.

Key & Wall Solutions achieved total sales of CHF 196.0 million in the first half of the financial year 2022/23, compared to CHF 174.3 million in the previous year. Organic sales grew by 14.3% (compared to 2.5% in the previous year), driven by higher sales prices in the Key Systems business unit, and clearance of inventories and increased market share in the Movable Walls business unit.

Key Systems saw 6.8% organic sales growth, as higher sales prices more than compensated for cost inflation. Each one of its three business lines (Keys, Key Cutting Machines and Automotive Solutions) and all geographical regions showed a positive sales development.

Movable Walls saw 25.3% organic sales growth, as the business continued to convert part of its Covid-related project backlog into sales. The business unit benefited from market share gains, successfully increasing its market presence with a sharpened focus on the architect’s role in project design and specification.

Adjusted EBITDA increased to CHF 34.2 million (previous year: CHF 22.2 million), with an adjusted EBITDA margin of 17.4% (previous year: 12.7%). This increase was largely driven by improved profitability in the Movable Walls business unit, where higher sales prices and volumes more than compensated for cost inflationary impacts. Thanks to a positive product mix, the adjusted EBITDA margin of Movable Walls increased to 18.7% (previous year: 10.2%), while Key Systems improved its adjusted EBITDA margin to 16.4% (previous year: 14.5%).

As well as focusing on price realization to offset inflation, both business units expect to benefit from the initiatives in procurement and sales excellence that form a key part of dormakaba’s Shape4Growth strategy. These will help to secure the highest returns for newly launched innovative solutions, such as the RW5 server-based automotive key cloning solution.

Assuming no further major disruptions and project delays related to Covid-19 or any deterioration of the supply chain, Key & Wall Solutions expects continued organic sales growth in 2022/23, based on a record order backlog for Movable Walls and good order intake. Key Systems is experiencing strong demand in most markets; however, there are some uncertainties on the demand side in major European markets, affecting consumables sales as well as purchases of key cutting machines.

Key figures – Key & Wall Solutions

CHF million, except where indicated

 

Reporting half-year ended 31.12.2022

%

 

Reporting half-year ended 31.12.2021

%

 

Change on previous year in %

Net sales third parties

 

187.9

 

 

167.8

 

 

12.0

Intercompany sales

 

8.1

 

 

6.5

 

 

 

Total segment sales

 

196.0

 

 

174.3

 

 

12.4

Change in segment sales

 

21.7

12.4

 

5.2

3.1

 

 

Of which translation exchange differences

 

–2.8

–1.7

 

0.9

0.5

 

 

Of which acquisition impact

 

0.0

0.0

 

0.0

0.0

 

 

Of which divestment impact

 

0.0

0.0

 

0.0

0.0

 

 

Of which organic sales growth

 

24.5

14.3

 

4.3

2.5

 

 

Adjusted EBITDA (Operating profit before depreciation and amortization)

 

34.2

17.4

 

22.2

12.7

 

54.1

Average number of full-time equivalent employees

 

1,901

 

 

1,923

 

 

 

Sales (CHF million) – Key & Wall Solutions

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