Dormakaba sees annual organic growth above mid-term target of 3% to 5%
(Reuters) -Dormakaba Holding said on Tuesday it expected organic growth above its mid-term target range of 3%-5% for 2022/23, as profitability measures and higher pricing aid the security group mitigate the impacts from supply-chain snags and high inflation.
The Swiss company said it saw an improvement to a slightly higher full-year adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin.
"We are strongly committed to improving our margins and will focus on measures in the second half of the financial year 2022/23 to reduce the cost base across the organisation, drive efficiency and improve our operational performance," Chief Executive Jim-Heng Lee said.
Global supply-chain disruptions eased over the course of 2022, helped by the end of aggressive lockdown strategies in China, which allowed locking device manufacturers to get raw materials and key electronic components such as chips on time.
For the first half ended Dec. 30, Dormakaba's EBITDA margin came in at 13%, compared with a margin of 14.5% a year earlier and the 13.2% expected in a company-provided consensus.
Net profit came in at 84.9 million Swiss francs ($91.3 million), below last year's 100.6 million francs and the 94 million francs expected in the analyst consensus.
($1 = 0.9298 Swiss francs)
(Reporting by Bartosz Dabrowski and Anastasiia Kozlova in Gdansk; Editing by Christopher Cushing and Subhranshu Sahu)