Gunnebo Group – Q2 Report 2019
Published on July 19, 2019 at 8:01 AM CET.
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Strong sales development and improved result in the second quarter. Cost-efficiency programme launched to accelerate margins improvement
Performance for the Quarter
Order intake continued to have a positive development of 5% (2% in constant currencies), where both Entrance Control and Safe Storage showed double-digit growth of 14%. For Cash Management order intake in the US and Asia-Pacific was slow. This is expected to improve in the second half of the year. For Integrated Security, which had a contraction of order intake in the quarter, order levels fluctuate between the quarters since this is a project-driven business.
Sales for the Group had a strong development and were up 10% (7% in constant currencies) where growth came from Entrance Control and Safe Storage. Entrance Control had a very strong quarter with big project deliveries in all regions and a reported sales growth of 23% (22% in constant currencies). The continued strong growth within Entrance Control is confirmation that the Business Unit is not only capturing the general 5% annual growth pace in the market, but also gaining market share. In Safe Storage, sales grew 17% year-on-year (13% in constant currencies) while Cash Management sales had a sales decline of -3% (-6% in constant currencies) while sales in Integrated Security were unchanged.
The Group’s overall EBITA of MSEK 73 was up 10% over last year and the EBITA margin for the quarter was 5.3%, which is in line with last year. Entrance Control continues to deliver a strong margin, reporting an EBITA margin of 12.9%. In Safe Storage it is encouraging to experience strong order intake and sales development, while the EBITA-margin of 7.8% is still not satisfactory. In Cash Management order intake and sales contracted in the quarter. In their main market, Europe, order intake and sales grew whereas they contracted both in the US and Asia-Pacific, negatively affecting the EBITA margin. In Integrated Security we had an improvement in EBITA compared to the same period last year. This is still not satisfactory, but we can see completed productivity measures coming through.
The announced cost-efficiency programme, which will have full effect from half-year 2020, will address our cost structure and generate improved profitability.