Prices drive revenue growth at dormakaba
Dormakaba increased its sales to CHF 1.4 billion in the first half of the 2022/23 financial year. The growth was mainly generated by price increases. Profit and profitability fell year-on-year. The company is responding with cost reductions.
According to a statement from dormakaba, the globally active locking technology group from Glattal generated sales totalling CHF 1.42 billion in the first half of the 2022/23 financial year, which ended on 31 December 2022. This corresponds to year-on-year growth of 5.2 percent. Organic growth is put at 8.0 per cent in the press release. It was mainly generated by price increases, explains dormakaba.
The adjusted operating result at EBITDA level was 4.6 percent below the previous year’s value at 184.6 million Swiss francs, and the corresponding margin fell from 14.3 to 13.0 percent. Similar losses were recorded in net profit. At 84.9 million francs, it was 15.7 million francs lower than in the same semester last year. The company attributes the decline in profitability to higher operating costs, a change in product mix and low volume growth in sales.
“Dormakaba has consistently continued on its path of successive improvement,” CEO Jim-Heng Lee is quoted as saying in the statement. “Although this is a good result, there is still much to be done.” Here, dormakaba is putting the focus on improving profitability. “In the second half of the 2022/23 financial year, we will focus on measures to reduce the cost base across the company, increase efficiency and improve our operational performance,” Lee explains.