ASSA ABLOY AB (publ) (ASSA_B) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to the presentation of Assa Abloy's Q1 report. My name is Björn Tebella. I'm heading investor relations, and joining me here in the studio are Assa Abloy's CEO, Nico Delvaux, and CFO, Erik Peder. We will now, as usual, start with a summary of the report and then we will open up for your questions and we plan to round off in about one hour's time. So with that, I'd like to hand over to you, Nico. Thank you, Bjorn. And also good morning from my side. Q1 results, we had a good start of the year. with a 2% organic growth of the top line, and then also good complementary growth again, growth requisitions of net 5%, and held by currency 1%, so top line up 8%. We've seen strong sales growth in global tech, good sales growth in Americas, stable sales in EMEA and entrance systems, and a sales decline in Asia, Pacific, mainly because of Greater China. and improved underlying operating margin. Operating margin EBIT was at 14.9%, but we had 140 base point dilution, mainly, I would say, from one-off acquisition and divestment-related costs. We had a good cash flow, 2.4 billion SEC, and a cash conversion of 51%, which is, I think, a good cash flow for a seasonally lower Q1. Also with that remark that we build up inventory in the quarter to anticipate the tariff uncertainty and that of course had an effect on the cash flow. A good quarter when it comes to acquisitions with six acquisitions completed in the quarter. And then we also launched our MFP10 program, where Eric will give more details later in the presentation. So in numbers, sales at 38 billion SEC, 8% up, like I mentioned, 2% organic sales, 5% net acquisition growth, and then 1% currency. An EBITDA margin of 15.9% and an EBIT margin of 14.9%. EBIT at 5.7 billion SEC, 4% up. And earnings...