Gunnebo: Strong Growth and Continued Streamlining in Q3 2018

CEO Comments to Performance in the Quarter - Continuing Operations: During the third quarter, the Group’s organic growth was 6%, coming from the core Business Units Entrance Control, Safe Storage and Cash Management. Both Entrance Control and Safe Storage showed double-digit growth. 

Entrance Control reported strong 17% sales growth for the quarter due to a very strong development of its business in all regions. Safe Storage also had strong sales growth for the quarter of 15%, mainly coming from the global ATM safes business and good development in the US. Cash Management, reporting a 2% sales growth, had a strong quarter in Asia-Pacific, Middle East and Europe, but weaker development in the US. Sales in Business Unit Integrated Security declined, mainly due to the fire project in South-East Asia which was delivered last year and has now been finalised.

During the third quarter we have continued to streamline the business and shift our focus from region to product. It is encouraging to see that the results for continuing operations improved, and we reported an EBITA of MSEK 92 with a margin of 7.1% for the quarter.

As part of the increased focus on the main Business Units, a small local alarm monitoring business in Spain has been divested during the quarter and an additional profit of MSEK 21 was recorded as items affecting comparability for the Group. Free cash flow improved by MSEK 78 for the quarter.

Performance in the Quarter - Discontinued Operations
In the third quarter, the ongoing divestment has been subject to works council consultation, which has successfully been completed. Full closing is expected to take place in quarter four after antitrust clearance. Discontinued operations recorded sales of MSEK 242 and an EBIT of MSEK -41. The net loss was MSEK -45.