Securitas Lags Q1 Estimates as Currency Effects Weigh on Earnings
Q1 2024 Financial Performance Overview
April 28 (Reuters) - Sweden's Securitas, one of the world's largest security services providers, reported a lower than expected first-quarter core profit on Tuesday, hurt by adverse currency exchange rates.
Securitas operates in more than 40 countries and earns the bulk of its revenue outside Sweden, which makes its reported results sensitive to currency movements as it needs to translate them back into Swedish crowns.
Key Drivers and Management Commentary
• "The ongoing shift in our business mix towards technology and solutions remains a key driver of our profitability improvement" - CEO Magnus Ahlqvist
Profitability and Earnings
• Q1 EBITA fell to 2.46 billion crowns ($265.9 million) from 2.53 billion crowns a year ago
• Analysts had forecast it at 2.50 billion crowns in a poll provided on the company's website
Operating Margin and Revenue Trends
• Operating margin increased to 6.8% from 6.4% last year
• Analysts had warned exchange rates would be a drag on Q1 revenue despite underlying organic growth
• Q1 sales were 36.21 billion crowns, against 39.61 billion crowns last year, also missing market estimates
($1 = 9.2522 Swedish crowns)
Reporting Credits
(Reporting by Tomasz Kanik, editing by Milla Nissi-Prussak)
