Securitas continues quiet transformation during Q2 earnings call

STOCKHOLM – After a relatively silent year Securitas AB held its second fiscal quarter 2023 earnings call on July 28, posting positive results and growth as the company undergoes changes to its digital capabilities.

That silence has ended with a quarterly earning call which shows the company well on track with organic sales growth of 11 percent, operating margin of 6.6 percent, Earnings per share before and after dilution of SEK 2.05, and earnings per share before and after dilution, before IAC, of SEK 2.46.

Securitas President and CEO Magnus Ahlqvist credited the numbers to price increases, but noted that the company had recorded good volume growth in technology solutions, and within the airport security business. “And we’re on par in terms of price wage in the first half of the year, and in light of the lower inflation levels that we are seeing now, we are expecting some normalization of wage increases during the coming 6-12 months.” Ahlqvist said.

The company also announced that it was trimming the fat with the divestiture of its Argentinean holdings, which in recent years have become too much of a burden for the company to continue to pursue. “…we have an active focus on sharpening our business to ensure that all parts are fully aligned with the strategy and our financial objectives. And as a consequence of this work, we have taken the decision to divest our business in Argentina,” the CEO stated.

 Ahlqvist continued saying, “The macroeconomic prospects are weak, and the business environment is challenging as we have commented for a number of years. And these factors in combination will limit the opportunity to execute our long-term strategy with the healthy financial performance are the main factors that led to this decision. And we continue to assess our business according to the same principles going forward.”

Securitas has touted its major transformative changes due to the pursuit of various additions to its digital capabilities in the global security technology market. The company went as far as to claim that the programs they’ve implemented to further this in North America and Europe have provided a “Fundamental Shift” in their digital capabilities as a company.

“We are executing according to plan while at the same time going through a period of extensive transformation – with modernization and digitalization of our business, integration of STANLEY Security and further sharpening the business,” Ahlqvist concluded. “We still have a lot of work ahead of us but with our new capabil­ities, we are very well positioned to deliver superior value as the new Securitas.”

Financials numbers in the article exclude any revenues or debts related to Securitas’ acquisition of Stanley last year. For more information, please visit  www.securitas.com.