Dormakaba reports improved core profit helped by cost cuts (updated)

Dormakaba Holding AG

03/09/2024 06:00

(Adds margin in paragraph 3, context in paragraph 4, outlook in
paragraph 5, dividend in paragraph 6)
       Sept 3 (Reuters) - Swiss security technology group
Dormakaba  DOKA.S  reported an 8.3% rise in its full-year
adjusted core profit on Tuesday, helped by the cost cutting
programme launched in July last year.
    The company, whose products range from entrance systems to
safe locks, posted adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) of 416.9 million Swiss
francs ($488.9 million) for the year ended June 30, up from
384.8 million a year earlier.
    That led to an improved adjusted EBITDA margin of 14.7%,
versus 13.5% in the year prior.
    Dormakaba is trying to improve its profitability to keep up
with competitors such as Assa Abloy  ASSAb.ST  and Allegion
 ALLE.N . It last year launched a transformation plan that
includes cost savings and staff reductions to help reach its
medium-term financial targets. 
    For the 2024/25 financial year, it forecast organic net
sales growth of 3% to 5%, with an adjusted EBITDA margin of at
least 15%.
    The Swiss group said it would propose a dividend of 8 francs
per share at its annual general meeting, down from the 9.50
francs distributed last year.
($1 = 0.8527 Swiss francs)

 (Reporting by Tristan Veyet and Chiara Holzhaeuser in Gdansk,
editing by Milla Nissi)
 ((Tristan.Chabba@thomsonreuters.com;))