dormakaba (DOKA) H2 2024 earnings summary

Executive summary

• Achieved strong organic net sales growth of 4.7% year-over-year, with acceleration in the second half driven by volume and pricing, and adjusted EBITDA margin improved by 120 basis points to 14.7%.

• Free cash flow increased by 15.9% to CHF 204.6 million, and net debt reduced by 23.8% to CHF 454.8 million, resulting in leverage of 1.1x.

• Transformation program is on track, delivering sustainable results, margin expansion, and operational efficiencies.

• Recognized as one of the world's most sustainable companies in 2024, meeting ambitious CO2 targets and advancing ESG initiatives.

• Strategy shifted from 'Shape' to 'Growth,' focusing on elevating performance, reducing complexity, and driving innovation.

Financial highlights

• Net sales reached CHF 2,837.1 million (+4.7% organic growth year-over-year); adjusted EBITDA margin rose to 14.7% (+120bps).

• Net profit was CHF 82.2 million; adjusted net profit was CHF 227.6 million (+18.9% year-over-year).

• Return on capital employed rose by 390 basis points to 29%.

• Gross margin, excluding items affecting comparability, improved by 130 basis points to 41.3%.

• Free cash flow increased by 15.9% year-over-year to CHF 204.6 million.

Outlook and guidance

• Targeting organic sales growth of 3%-5% and an adjusted EBITDA margin of at least 15% for FY 2024/25.

• Midterm margin target confirmed at 16%-18% for FY 2025/26, with ROCE above 30%.

• Pricing is expected to contribute 1.5%-2.5% to growth, with the remainder from volume.

• Execution of transformation and commercial initiatives to drive further efficiency and growth.