Key & Wall Solutions and OEM
As of 1 July 2023, the Key & Wall Solutions business segment has integrated dormakaba’s OEM (Original Equipment Manufacturer) business, and now operates under the new name Key & Wall Solutions and OEM (KWO).
In the first half of the financial year 2023/24 the business segment generated total net sales of CHF 234.1 million (previous year: CHF 252.1 million). Total segment sales declined by 7.1%, mostly stemming from a negative currency translation effect of 6.6%. KWO also experienced a slight decline in organic sales growth of 0.6% (previous year: +9.0%). The main driver was a decline in the OEM and Key Systems businesses that was only partially offset by strong organic growth in the Movable Walls business.
Organic sales in the Key Systems business unit decreased due to weaker demand in all markets and strong competition in South America. Although the market for automotive solutions and keys remains relatively stable worldwide, there was continued lower demand for key cutting machines in major markets compared to the first half of financial year 2022/23.
The adjusted EBITDA margin for the Key Systems business unit declined: Good management of selling, general and administrative expenses could not make up for the significant decrease in top line and an unfavorable product mix.
The Movable Walls business unit retained its strong momentum and recorded double-digit organic sales growth. The business unit continued to further strengthen its leadership position in the US, supported by price realizations throughout all regions.
The adjusted EBITDA margin for the Movable Walls business unit continued its strong development due to the expansion of its leadership position in the profitable US market. The business unit was able to benefit from a changed competitive landscape, boosting adjusted EBITDA.
Despite top-line headwinds, adjusted EBITDA for Key & Wall Solutions and OEM reached a record level of CHF 44.1 million (+5.5%) for the first six months of the financial year, compared to CHF 41.8 million for the previous year. The adjusted EBITDA margin increased by 220 basis points to 18.8% (previous year: 16.6%) mainly due to the higher contribution of the business unit Movable Walls.
Despite some improvement at the end of the first half of the financial year 2023/24, the OEM business unit experienced a decline in sales due to lower demand from the Americas and from residential businesses. Despite these challenges, the business unit was able to safeguard profitability levels with tight cost management.
Key figures – Key & Wall Solutions and OEM
|
CHF million, except where indicated |
|
Reporting half-year ended 31.12.2023 |
% |
|
Reporting half-year ended 31.12.2022 |
% |
|
Change on previous year in % |
|
Net sales third parties |
|
212.4 |
|
|
223.9 |
|
|
–5.1 |
|
Intercompany sales |
|
21.7 |
|
|
28.2 |
|
|
|
|
Total segment sales |
|
234.1 |
|
|
252.1 |
|
|
–7.1 |
|
Change in segment sales |
|
–18.0 |
–7.1 |
|
18.7 |
8.0 |
|
|
|
Of which translation exchange differences |
|
–16.6 |
–6.6 |
|
–2.2 |
–0.9 |
|
|
|
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 |
|
–1.4 |
–0.6 |
|
20.9 |
9.0 |
|
|
|
Adjusted EBITDA (Adjusted operating profit before depreciation and amortization) |
|
44.1 |
18.8 |
|
41.8 |
16.6 |
|
5.5 |
|
Average number of full-time equivalent employees |
|
3,170 |
|
|
3,306 |
|
|
|
Sales (CHF million) – Key & Wall Solutions and OEM
