dormakaba Group, one of the top three companies in the global access solutions market, finished FY 2020/21 (year ending 30 June 2021) with good business results that marked an improvement on the previous year.
Overall, consolidated net sales amounted to CHF 2,499.7 million (the previous year CHF 2,539.8 million), a decline of 1.6% (CHF 40.1 million). The company recorded organic sales growth of 1.3% and an EBITDA margin of 14.1% (previous year 12.8%).
“Our results are in line with our guidance, with a slightly better organic growth. The main reason for the good results was the strong performance of our European and Asian businesses.”dormakaba CEO Sabrina Soussan said on 1st September 2021
With its strong brands, their portfolio includes locking systems – from cylinders, keys, and locks right through to fully networked electronic access solutions as well as cloud-based solutions – but also physical access systems and automatic door systems as well as door hinges, fittings, and door closers.
The Access Solutions business in Germany, Austria, and Switzerland achieved the highest revenues for the group, with total sales of CHF 812.9 million in the financial year 2020/21. Organic sales grew by 2.6% compared to the previous year’s level driven by the Electronic Access & Data (EAD) and Services businesses, both with double-digit growth, as well as Entrance Systems.
The segment has been focusing on the digital transformation of the building technology industry, opening up new business models and value streams. An example of this is EntriWorX, which supports smart planning processes for buildings, simple installation of door solutions and secure, smooth operations of these solutions. Overall, EntriWorX should create productivity gains for customers throughout the entire building life cycle; for example, the initial time for commissioning a complex door is reduced from several hours to less than 30 minutes. The solution was launched in the German market at the end of April 2021, with a phased, international market rollout planned in the coming year.
The Access Solutions business in the rest of Europe, Middle East and Africa achieved total sales of CHF 712.9 million in the financial year, with organic sales growth of 4.4% compared to the previous year. Sales growth was driven by strong double-digit growth for the Electronic Access & Data (EAD) product cluster. Most other Product Clusters experienced good growth as well, though Lodging Systems showed a double-digit decline due to the severe impact of the pandemic on the hospitality vertical.
The Access Solutions business in North and South America achieved total sales of CHF 669.6 million in the financial year. Organic sales declined by 5.2% compared to the previous year. The Lodging Systems business showed the most notable decline with organic sales 20% below the pre-Covid level again due to the high proportion of customers in the severely impacted hospitality industry. Major parts of the Entrance Systems business, including its touchless offering, experienced a good sequential recovery. This was supported by the continued strong performance of Alvarado, which was acquired in 2019. Sales in Electronic Access & Data were above the previous year’s level due to good demand for integrated electronic security systems and several well-received product launches.
The Access Solutions business in Asia Pacific achieved total sales of CHF 415.2 million in the financial year. Organic sales grew by 4.3% year on year. Good growth came from Services, electronic products such as digital locks, and particularly from the business with touchless access solutions in China where dormakaba is a market leader.
After the year-end, the dormakaba group acquired two companies in the Asia Pacific region. Solus Systems in July 2021 to strengthen its position in electronic access and data in India. Australian Reliance Doors and Best Doors Australia Group in August 2021 to strengthen the group’s market position in commercial and residential door automation
Overall, dormakaba is well-positioned in innovation with above-average R&D investment amounting to 4-5% of annual sales.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.