Continued strong organic growth and strengthened focus on the execution of the OneISS strategy
01 Noviembre 2023 - 11:03AM
Continued strong organic growth and strengthened focus on the
execution of the OneISS strategy
Company Announcement
Copenhagen, 1 November 2023 No. 27/2023
Trading update for 1 January – 30
September 2023
Continued strong organic growth and
strengthened focus on the execution of the OneISS
strategy Highlights
-
Organic growth was 9.3% in Q3 2023 and 10.7% for the first nine
months of 2023. Total revenue for the quarter amounted to DKK 20.0
billion.
-
The continued strong organic growth in Q3 2023 was driven by price
increases and underlying volume growth. Organic growth for projects
and above-base work was slightly positive.
-
The OneISS strategic direction remains unchanged. Now, three years
after the launch of the strategy, the new and streamlined Executive
Group Management team has reviewed and prioritised OneISS
initiatives to ensure all initiatives generate the expected value
and strengthen the strategic execution.
-
The enhanced focus on strategic initiatives is expected to generate
operational benefits and cost savings of an estimated DKK 200-250
million annually with the majority expected to have effect in 2024.
Related to the review, one-off costs of around DKK 200-250 million
are expected to be recognised in H2 2023.
-
Improvements in underlying margin have been realised, and ISS is
well on track to deliver the targeted operating margin of above 5%
in 2024.
-
Commercial development remained solid, and customer retention rate
was maintained at a high level at 95% (LTM).
-
The divestment process of ISS France is developing in line with
plan. Due diligence is in progress with potential buyers. In Spain,
the bolt-on acquisition of Grupo Fissa was completed in September
2023. The integration is progressing according to plan and is
expected to be finalised during Q1 2024.
-
The 2023 outlook is updated. Organic growth is now expected to be
around 9% (previously ‘7 – 9%’). Operating margin remains within
the previous range (‘4.25% - 4.75%') with underlying margin
expected to be around 4.6%. Including one-off costs related to the
OneISS review, operating margin is expected to be reported at
around 4.3%. Given the high growth, free cash flow is now expected
to be around DKK 1.8 billion (previously around DKK 2.0
billion).
Kasper Fangel Group CEO, ISS A/S,
says:
“It is satisfying that our strong growth and
development throughout 2023 was maintained in the third quarter.
ISS is well on track to deliver on our financial targets for 2024.
The demand for our services is still increasing across markets and
we are constantly focusing on improving our service offerings
whilst delivering best-in-class service experiences for our many
customers world-wide – achieved through the tireless efforts of our
more than 350,000 dedicated placemakers. The OneISS strategy
execution continues to drive value. We launched the strategy three
years ago and during the second half of this year we have reviewed
and focused the strategic initiatives to further improve the
execution, accelerate strategic development and continue to build a
stronger and value-creating ISS. This will enhance our ability to
seize the opportunities that lie ahead.”
For investor enquiries Jacob Johansen, Head of
Group Investor Relations, +45 21 69 35 91 Kristian Tankred, Senior
Investor Relations Manager, +45 30 67 35 25
For media enquiries Kenni Leth, Director of
External Communications, +45 51 71 43 68
About ISS
ISS is a leading, global provider of workplace and facility
service solutions. In partnership with customers, ISS drives the
engagement and well-being of people, minimises the impact on the
environment, and protects and maintains property. ISS brings all of
this to life through a unique combination of data, insight and
service excellence at offices, factories, airports, hospitals and
other locations across the globe. ISS has more than 350,000
employees around the globe, who we call “placemakers”. In 2022,
Group revenue was DKK 73.8 billion. For more information on the ISS
Group, visit www.issworld.com.
ISS A/S, ISIN DK0060542181, ISIN US4651472056, ISS
Global A/S, ISIN XS2013618421, ISIN
XS1145526825, ISIN XS1673102734, ISS Finance B.V.,
ISIN XS2199343513
- ISS Announcement - Q3 2023 Trading Update
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