Securitas Q1 profit meets forecast as Europe margin lags
Shares down 4% after margin miss in Europe
Aviation business and systems integration weigh in Europe
European margin to improve in Q2
Q1 EBITA of SEK 2.36 billion meets expectations
Adds analyst quote, executive quote in paragraph 3, shares in paragraph 4
By Agata Rybska
May 8 (Reuters) -Core profit at Sweden's Securitas SECUb.ST rose 8% in the first-quarter year on year as expected on Wednesday but a dip in its profit margin in Europe on integration costs and challenges in airport security staffing knocked its share price.
The results were led by its performance in North America while the 5.0% margin it reported in Europe came in below the 5.1% a year ago, sending shares down around 4% by 0800 GMT.
"The margin in the European business actually disappointed and fell year over year, and I think that's seen a little bit negatively by the market," Kepler Cheuvreux analyst Johan Eliason said.
The company said it had intensified recruitment and training in its airport security business and was finalising the integration of Stanley Securities.
"We are expecting performance to improve in Q2 as we work through those transitions," CEO Magnus Ahlqvist said in a call with analysts.
The acquisition of Stanley Security, which the company closed in 2022, has added technology solutions exposure to Securitas's staff-intensive offering, but put it in significant debt, which the company has been trying to reduce.
Integration of the U.S. electronic security company realised further cost synergies, Ahlqvist said in a statement, although these were partly offset by operational cost increases from the transition.
Ahlqvist added Securitas is on the right path to achieving its target of an 8% operating margin by 2025.
Securitas, one of the world's biggest security services firms, posted an operating profit before amortisation (EBITA) of 2.36 billion Swedish crowns ($216.95 million).
This was against an analysts forecast of 2.33 billion, a poll published by the company showed, and up from 2.18 billion a year earlier. EBITA margin widened to 6.0% from 5.8%, slightly lagging the 6.1% expected by analysts.
($1 = 10.8781 Swedish crowns)
Reporting by Agata Rybska; editing by Philippa Fletcher
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
