Securitas AB (publ) (OTCPK:SCTBF) Q3 2024 Earnings Conference Call November 6, 2024 3:30 AM ET
Company Participants
Magnus Ahlqvist – Chief Executive Officer
Andreas Lindback – Chief Financial Officer
Conference Call Participants
Andrew Grobler – BNP Paribas
Remi Grenu – Morgan Stanley
Suhasini Varanasi – Goldman Sachs
Raymond Ke – Nordea
Viktor Lindeberg – Carnegie Investment Bank
Sylvia Barker – JPMorgan
Johan Eliason – Kepler Cheuvreux
Stefan Ward – Pareto Securities
Magnus Ahlqvist
Good morning everyone and welcome to our Q3 Results Presentation. We are pleased to present continued good development; we are executing according to our plan with the transformation of Securitas. So, let us start by looking at some of the highlights in the third quarter.
The development in the quarter was good. We delivered 5% organic sales growth for the group, 6% real sales growth in technology and solutions. The operating margin improved 60 basis points to 7.5%. And when looking back the last 20 years, this is the highest margin recorded for the group and, obviously, something that we feel very good about. A very strong improvement in Europe in security services contributed in a significant way to the overall performance improvement. And now it’s very positive that we start to operate at a high level also in Europe which is helping and essentially means that all segments are now performing and executing on the strategic plan.
Looking at the other segments, solid development in Ibero-America and Other also contributed to the results, while North America was slightly below last year. The price/wage balance in the group is positive in the first 9 months. And looking at the cash flow, the operating cash flow was 115% in the third quarter and this contributed to an improved leverage.
So with that, let us look at the performance in
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