Assa Abloy 10 Acquisitions and Record Profits (Q3 2023 Financials)

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Angelique Chen
•Published Oct 26, 2023 19:05 PM

No one in physical security acquires more companies than Assa Abloy, and even for its high pace, Q3 was significant at 10 in the past quarter.

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In this note, IPVM examines the company's Q3 2023 financials, including the 10 acquisitions, record profit numbers, and HID performance.

Financials ******** - ****** **** ************, ****** **** ******

**** ***** ******** ******* ** ~$*.* billion ** *** **** ******* ** Wednesday. ***** **** *% ** **** was ******* ****** *** ** ************ in *** *********** *******, ** *** 16% ** ******* *** ***** ******, with **% *********** ** *** *** acquisitions ** *** **** *******, *** company **** ** *** ** **** earnings ****.

*******, *** ******* **** ********* * record **** ****** (********* ****** ******) of **.*% ** *** **** ******* (excluding *** *** **** *** ******* divestitures, *** ******* *****).

10 ************ ** ** *** ** ***

**** ***** **** **** ** *** a "**** ****" ** ************, **** 10 ************ ** *** **** ******* and ** ***:

************ **** **** * **** ****** quarter **** ** ************ ****** ** Q3, ** ************ ****** ****-**-****. **** represent ** ********** ***** ** ****** SEK20 ******* [$*.* ******* ***].

***** **** *** ******** ** ********* in *** **** *******, ***** ********* are *** **** ******** ********:

*** **** *****'****** *********** ****.

Global ************ *** *** ***********

**** * "********** **** ********," **** Abloy ******** *% *** ******* ***** in ****** ************, *** ******* **% made ** ***, *** **% ** global *********, *** ******* ****. **** added *** ******* *** "**** ************ from *** ******** ***** **** *** exception ** ******** ****** *** ************** Technologies."

**** ***** **** ***** **** *** acquisition ******* *** *** *** ****** ID **** ******************"*** ***** ** ****.* ******* [$*** million ***] **** ****, * **** interesting ******* **** **** **** *********."

Global ************ **** ****** ******** ** **%-**%

**** ***** ***** ** **** ******* EBIT ****** ** *** ****** ************ segment, ********* ***, ** **%-**%:

** ******** ** **** **** ******* between **% *** **%. ****** **** is ********** ***** *** **%, *** not *** **% ** **% **** some ** *** **** ******** *****. We **** ****** **** **** ****** Tech ** **%, **% **** ****** if ***** *** ******* *** *** volumes *** ***** ** **** **** to **.

Backlog ** ****, **** ** ******** *********

**** ***** **** ** ****** ** decrease ********* ******* ***** ** *** "better *********" **** *** ****** ***** as *** *******'* *** *** ***,**** ******, ****:

*'* *****, *** *'* *** *********. I ***** ******* **** ** **** the ********* **further ******** *** ********* which comes from the ****** ********* ** **** ** *** ****** *****, the ****** ********* ** **** **** ** *** ******** ****, should also be able to generate that we **** **** ********* **** ** *** ********* ****. [Emphasis added]

** **** ********, **** *****'* ********* & ******* *********** **** *** *****-** "*** ****** last ****" *** *** ******* *** now ********* **** *** ********:

** *** ***** **** -- ***** up **** *** ******* ** **** because ** *** ********** ********* *********. That *** ****** **** **** *** then ** ******* ** ******** ****** the ***** ***** ** ********** ** were **** ** ******* *** **** we ******* ** ******* ** **** backlog ** ** ** **** **** and **** ** *** ** **** year.

***** *** "******* ** ****," **** Abloy ** *** **** ** "********** PACs ******," ** ***** ****** ********** in *** ****** ******* ***** ** is ********* ** ******* **** **** year's "********" *********, ******* *****:

**** ** **** ***. **** ******* is ****. ** *** **** ** normalized **** ******.

****'* ***** ** ** * ********* also *** ***** ******* **** ** because *********, ** **** **** *** Global **** *** * **** ****** quarter. ** * ******** ***** *** organic ****** *** **% *** ****** Tech ** ** **** ****. **it's * **** ********* ********** now with one working day less this Q4 and with ****** **** ****** ** ******** ******* **** *** **** ******* * **** ***. [Emphasis added]

"Good ********" ********** ****, "**** *********" *********** ****

*** *******'* *** ******* ****** *** due ** "**** ********* ****** ********** on *** *********** ****," ******* ****. He ******* ********** ** *** ***** in *** ********* *** *** *******'* OEM **** ********* *********** ** *** difficulty:

*** ***** ***** ** **** **** significantly. ** *** *** ****** *** because ** **** ** *** ****** manufacturers, *** *** **** *************, *** if **** *** *** ****** ***** down *************, **** **** **** ******** from ** *** ** *** * double ***.

**** ***** **** **** *** *********** market ** ********* *** ** **** parts ** *** *****. ********* ********** differences, ******* ****:

** *** **** ** *** *****, the *********** ***** **** ******** ******** is **** ***** ** **** ******** cycle. *********, *** ******* ** * little *** ** ******* *** **** Europe ** *******.

** ******* ** *** *********** *******, the ********** **** ** *** ******** "has **** **** ********" ******* *** being "** *** ** ** *** 18 ****** ***", ******* ****:

** ***** *** **** ******** ** the ********** ****. ******* **'* *** as *** ******* ** ** *** 18 ****** ***, *** * ***** it's ***** **** **** ******** ** the ********** ****.

EMEIA ******* ***** ******* *** ** *** *********** ********* ** *** ******

****** *** *****, **** ***** *** the ******* ******* ****** *********** ** the ***** ******, *** ** *** hit **** ** *** ********, *** company ****:

*****, *** ******** **** *** *** most ** *** ******** ** *** residential ****, *** ******* ***** ** -3%.

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******* ********* **** ** ******, ~**% of ***** ******** ** ***********-*******, *** builds *** ** * ********* *****, and **** *** ************ ******-***** ******** are ********* ** ******:

** ******, ******45% ** *** ******** ** ***********-*******. And we see the residential in general as well for new build as for are still on, I would call it, even depressed level in general. In particular, in the Nordics, we've seen a high single-digit decline in our business in Finland and a continued decline also in Sweden. And those markets are also important for us from a profitability perspective. [Emphasis added]

Greater-China ***********

******** ** * **% ***** ******* in **** *** ** *****'* ***** lock-downs * **** ***, **** ***** ** *** "**** happy" **** *** *********** ** *** region:

We *** **** ***** **** *** *********** ** *** ****** ** ******* *****. As you remember, a year ago, we were printing double-digit negative margins in China. We are today very close to breakeven. It's still red figures, but it's very small red figures. [Emphasis added]

*** ******* ******* ** *** ******** margins ****, *** **** *** **** dilution *** *** ****** ****** **** improvement, ******* ****:

*********, ** *** **** *********if ** *** ******** ** **** ** ** *** ***** ** **** *** *** **** again in the coming quarters, then **** ** ****** **** ***** ** ******* ***** ******* ** ******* *****. The **** **** ******** ** ***** in the quarter is an important reason why the ****** ******** ** **** as compared to the same quarter a year ago. [Emphasis added]

"Important ** ******** ** ******** ******" ***** **** *********

**** ***** *** ********* ** ******** prices **** *** ********* ****, ******* that ***** *** * ***** ** ~2.5% ** *** **** *******:

** *** * *** *%. ** it *** ****** ** *.*% ** the *******.

*** ******* ***** ***** *** ******* informing *** ****** ** ********* **** will **** ** *** ********* ** 2024 *** ** *********:

** **** **** **** ** *** beginning ** *** ****, ** *** around *% ***** *********. ** *** the **** ****, *** ****** ****** around *% ***** *** ****. ** are *** *********, *** ** *** already ********* *** ****** ** ***** increases **** **** **** **, *** beginning ** **** ****. **, ** will ******** ** ******** ****** **** year ******* ** ******** ** *** inflation.

******* ********** ******** *****, ***** ********* and ******* ********* ********, *** ****** said **** ** ** ********* *** the ******* ** ******** ** ******** prices:

***, *** ******** *** **********, *** it ** ***** ** * ****** level. ** ***** *** **** ****** labor *********. *** ** ******* ***** inflation **** ******** ** ** ****** next ****, *** ** **** *** strong -- ******** ******* *********. *********, it's ********* **** ** ******** ** increase ******, *** * ***** *** we **** ******** ** ******** ****** as **** ** *** ****** *******, and ** ***, **** *** **** the ****.

*** ***** ******** **** ****** ********* inflation ********** ** ********* ***** ** the *****, ****** ******* *********:

** *** ***** ******* ** *** details *** *** ***** ********* *** next ****, *** * ***'* ***** it's ***** ** ** *** ***********. It's *** ***** ** ** ****** to *** ********* ******* ** *** different *********. ********* ** **** *** see ** * ********** ** ********* between, *** ********, *** ** *** Europe, **** ****** **** **** ** translated ** * ******* ******, *** the ********** *** **** *** ** pricing ***** ******* *** ** *** Europe, *** ********. *** ** **** try ** ******** ****** ** *** different ******* ***** ** ********** *** that *********.

HHI ******

**** ***** ************ ************* *** (******** ******’ ******** *** Home *********** ********) *** *** ********** of ***** *** *** ***** *********** business ** *** ** *** ****** in ****.

*** *** ********** **** *** ******* for ********* ***. *** ****, ***:

*** ** **** **** ** *** "weaker" *********** ******, *** ****** **** that **** ***** ******** ** ** bottoming ***:

** *** * ***** ******** ***** in *** ***********, *** ** ******* that ** ** ********* *** *** that ** ****** **** ** *** get *** ***** **** **** ** is ***** ***.

*** ******* ********** ********* **** ***** would ** * $*** ******* ******* in *** ****, *** ******* **** the ******* ** * ********** ******* visit ** ******* *** ** ****** the ******* ****** ** **********:

*** ** * **** *********, ******* in *** ******** * **** **** many **** ******; * *** -- two ***** *** *** ******** ** the *********** ***** *** *** ***** biggest *******. **'* *** ******* ******* for *** ***** *****. ** **** more **** *,*** ****** ******* ** the *******.

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