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 and robust volume and pricing contributions; adjusted EBITDA margin improved by 120 basis points to 14.7%, marking the fourth consecutive semester of margin expansion.

• 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.

• Return on capital employed rose by 390 basis points to 29%, and net profit reached CHF 82.2 million.

• Transformation program delivered tangible results, including cost savings, operational efficiencies, and a strengthened balance sheet; strategy shifted from 'Shape' to 'Growth,' focusing on elevating performance, reducing complexity, and driving innovation.

• Recognized as one of the world's most sustainable companies in 2024, with significant progress in ESG initiatives and a 20% reduction in injury rate.

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); negative currency impact of 4.9%.

• Adjusted net profit was CHF 227.6 million (+18.9% year-over-year); net profit was CHF 82.2 million (down 7.1% year-over-year, impacted by items affecting comparability).

• Free cash flow was CHF 204.6 million, up 15.9% year-over-year; net debt reduced by 23.8% to CHF 454.8 million; leverage factor at 1.1x, a historic low.

• Gross margin (excluding comparability items) improved by 130 basis points to 41.3%.

• Board proposes CHF 8 per share dividend, payout ratio of 51.1%.

Outlook and guidance

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

• Midterm margin goal confirmed at 16%-18% by 2025/26, supported by ongoing transformation and complexity reduction; ROCE target above 30%.

• Guidance assumes pricing will contribute 1.5%-2.5% to growth, with the remainder from volume.

• Order backlog remains strong, especially in project business and airports.