Dormakaba records half-year organic growth slightly above 3% to 5%

The logo of Swiss security group Dormakaba is seen at its headquarters in Ruemlang, Switzerland July 22, 2021. REUTERS/Arnd Wiegmann/File Photo

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Aug 31 (Reuters) – Swiss security group Dormakaba Holding (DOKA.S) said on Wednesday it expected organic growth slightly above its medium-term target range of 3% to 5%, but added that the forecasts only applied to the first half of the year. fiscal year 2022/23, as geopolitical and macroeconomic risks increase.

The growth forecast for the first half is lower than the organic sales growth of 7.7% published by Dormakaba for the year ended June 30.

He said soaring inflation due to Russia’s invasion of Ukraine and rising labor costs, particularly in the Americas, could only be partially offset by increases in short term price.

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Supply chain constraints exacerbated by war and China’s strict COVID-19 lockdowns have led to shortages of raw materials and key electronic components such as chips, hurting lock device sales.

The company said it expects an adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin of around 13% in the first half of the fiscal year.

During the twelve months ended June 30, Dormakaba’s EBITDA margin was 13.5%, compared to a margin of 14.5% a year earlier.

The company announced that it would propose a dividend of 11.50 Swiss francs per share, below the 12.50 francs per share it had paid the previous year.

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Reporting by Bartosz Dabrowski in Gdansk; Editing by Clarence Fernandez and Milla Nissi

Our standards: The Thomson Reuters Trust Principles.

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