Dormakaba sees half-year organic growth of slightly above 3% to 5% (updated)

Dormakaba Holding AG

31/08/2022 06:26

(Adds detail, background)
    Aug 31 (Reuters) - Swiss security group Dormakaba Holding
 DOKA.S  said on Wednesday it expected organic growth slightly
above its mid-term target range of 3% to 5%, but added the
guidance applied only to the first half of the 2022/23 financial
year, as geopolitical and macroeconomic risks increase.
    The first-half growth guidance is below the organic sales
growth of 7.7% Dormakaba reported for the fiscal year ended June
30. 
    It said the soaring inflation due to Russia's invasion of
Ukraine and higher labour costs particularly in the Americas
could only partly be offset with price increases in the short
term.
    Supply chain constraints exacerbated by the war and strict
COVID-19 lockdowns in China have led to shortages in raw
materials and key electronic components such as chips, hurting
sales of locking devices.
    The company said it expected an adjusted earnings before
interest, tax, depreciation and amortisation (EBITDA) margin of
around 13% in the first half of the financial year.
    In the twelve months ended June 30, Dormakaba's EBITDA
margin came in at 13.5%, compared to a margin of 14.5% a year
earlier.
    The company said it would propose a dividend of 11.50 Swiss
francs per share, below the 12.50 francs per share it paid for
the previous year.

 (Reporting by Bartosz Dabrowski in Gdansk; Editing by Clarence
Fernandez and Milla Nissi)
 ((bartosz.dabrowski@thomsonreuters.com; +48 58 7696560;))