Access Solutions

Since 1 July 2023, dormakaba operates in a simpler organizational structure that merges all Access Solutions commercial business into a single global unit under the leadership of the Chief Commercial Officer. To match this organizational structure, external reporting summarizes all three former Regions, as well as Operations and Product Development, as one unified business segment.

Initiatives under the Shape4Growth transformation program, announced on 3 July 2023, continue on track. Operational footprint optimization, efficiency, and procurement measures have already led to gross margin improvements. dormakaba has started to build up shared service centers in America, Europe, and Asia for Finance and HR Functions, as well as a dedicated Hub for Product Development in Europe.

This business segment achieved total net sales of CHF 1,167.1 million in the first half of the financial year 2023/24, compared to CHF 1,198.5 million in the previous year. Organic sales grew by 4.5%, driven by good price realization (3.4%) and volume growth (1.1%); negative currency translation effects had an impact of 6.8% due to a very strong Swiss franc.

Most markets and almost all product clusters contributed to increased sales, with double-digit growth in Access Hardware Solutions and Access Automation Solutions. Services and Access Control Solutions saw high single-digit growth. Sales for the Safe Lock and Lodging business were slightly lower than in the previous year.

One aspect of dormakaba’s simplified organizational structure is its focus on five core markets: America/Canada, Germany, Australia/New Zealand, Switzerland, and United Kingdom/Ireland. Most of these markets showed organic sales growth in the first half of financial year 2023/24. High single-digit organic sales growth in Germany was driven mostly by volume increases. Sales growth in Switzerland (low single-digit), Australia/New Zealand (low single-digit) and United States/Canada (mid-single-digit) was predominately driven by pricing. UK/Ireland showed a single-digit decline in organic sales growth, mainly due to volume declines which reflected increased challenges in the competitive landscape that could not be offset by price increases.

The Rest of World Access Solutions market saw mid-single-digit organic growth, driven equally by price realization and volume. India recorded high single-digit organic sales growth, reflecting both increased price and volume. Organic sales in China declined due to a reduction in volume. Increased volumes were recorded in Iberia, Eastern Europe, and Asia, and good price realization in France, Austria, Scandinavia/Baltic, and the Netherlands. Middle East recorded a decline in sales.

Adjusted EBITDA increased to CHF 177.1 million (previous year: CHF 162.9 million), with an adjusted EBITDA margin of 15.2% (previous year: 13.6%). This significant margin improvement resulted mainly from a favorable product mix; it also reflects positive effects of the transformation program, such as increased operational efficiency and procurement savings, as well as good overall price realization. Access Solutions further benefited from lower raw material and freight expenses, which, together with operational efficiencies, offset cost increases for labor and semi-finished goods.

The second half of financial year 2023/24 does not anticipate any major change in demand for Access Solutions products. Organic growth will continue to be supported by innovative solutions such as dormakaba’s Door Efficiency Calculator and Ambiance Cloud. There may be further price increases if costs for labor and intermediate goods remain elevated, but forward visibility continues to be limited.

Key figures − Access Solutions

Sales (CHF million) − Access Solutions