Loomis (LOOMIS) CMD 2024 summary

Strategic priorities and business transformation

• Strategic priorities for 2025–2027 focus on growth in established markets, expansion into new customer segments (especially SMEs), and product expansion via M&A, with a strong emphasis on operational excellence, automation, and industry-leading sustainability.

• Transformation from a cash-in-transit company to a provider of integrated digital and physical payment solutions, supported by scalable infrastructure and shared platforms.

• M&A strategy targets consolidation in core markets, entry into high-growth regions like LATAM, and expansion of digital offerings.

• Sustainability commitments include emission reduction, resource efficiency, responsible procurement, and employee wellbeing.

Financial performance, guidance, and targets

• 2025–2027 targets: 5–7% annual revenue CAGR (currency adjusted), 12–14% operating margin (EBITA), 34% CO₂e reduction (scope 1 & 2, vs. 2019), and 10% reduction in recordable injury rate (vs. 2024).

• Achieved record revenues in 2023, with a 10-year revenue CAGR close to 11% and a rolling 12-month revenue near SEK 30 billion; EBITA margin at 11.4%.

• Dividend policy set at 40–60% of net income/EPS, with capex below 5% of revenues and net debt/EBITDA below 2x.

• Shareholder returns at an all-time high, with over SEK 3.8 billion distributed since 2021 through dividends and buybacks.

• Margin improvement expected from digital/SME expansion, operational excellence, and accretive M&A.

Market trends, business developments, and growth opportunities

• Cash remains resilient and essential for financial inclusion, with governments legislating to ensure cash acceptance.

• Recurring revenue from ATMs and automated solutions has grown significantly, now representing 39% of total revenue.

• Expansion into the SME segment, with an addressable market of up to three million locations in Europe and the U.S., and tailored solutions for cash management and digital payments.

• Strategic acquisitions have enhanced digital and automation capabilities, including Loomis Pay and CIMA.

• Europe, LATAM, and US segments delivered record revenues, with strong growth in adjacent and SME-focused offerings.