Securitas AB Interim Report January-March 2020

Thursday, May 7, 2020

Interim Report for January to March 2020

Comments from the President and CEO

The Group delivered organic sales growth in the first quarter of 2 percent (7). Organic sales growth declined in all ­business segments due to the extra­ordinary situation of the ­corona pandemic which started to affect our business in the beginning of March and increasingly throughout the month. Our business segment Security Services Europe was most impacted, mainly driven by a rapid decline in activity in the aviation ­business.

Security services are ­considered essential services in most countries. We have been able to respond quickly to our ­clients’ demands by ­leveraging our strong range of ­protective services through our global and local footprint. We ­protect critical activities and supply chains required to handle the ­pandemic, including increased activity levels at hospitals and protection of facilities.

Security solutions and electronic security grew by 10 percent in the first quarter to represent 22 percent of total Group sales. We are currently not prioritizing acquisitions but we intend to return to our previous acquisition approach when the situation normalizes.

The operating margin in the first quarter was 3.8 percent (4.8), a decline deriving from all business segments but the main impact from Security Services Europe. The price and wage ­balance was on par in the first quarter and retaining that ­balance is a key focus area in 2020.

The operating result, adjusted for changes in exchange rates, declined by 19 percent. Earnings per share, before items affecting comparability, amounted to SEK 1.70 (2.12).

We delivered a good cash flow in the first quarter and our strong focus on cash management remains a key priority across all business segments.

Available documents