Kaba confirms medium-term growth and profitability targets
Kaba Group has confirmed its medium-term growth and profitability targets for the 2014/2015 financial year: EBITDA margin to go up from the current 16.0% to 18.0%, with organic growth of 5.0% to 6.0%. During its Capital Market Day on 6 November 2012, Kaba is illustrating how these targets are to be reached.
Globally active security group Kaba, which employs around 7500 people, is confirming its medium-term targets for the 2014/2015 financial year: organic growth of 5.0% to 6.0% and an EBITDA margin of 18.0%. Today's Capital Market Day centers on product presentations and explanations of the various activities that are designed to increase the EBITDA margin. "In order to achieve the profitable growth we are aiming for, we are investing in markets and products. At the same time we are consistently pursuing a program to improve operational efficiency," says CEO Riet Cadonau. At Group level, Kaba expects its organic growth programs for markets and products to deliver margin growth of approximately 1.3 percentage points. In addition, measures taken to improve operational efficiency are expected to increase the Group's EBITDA margin by approximately 0.7 percentage points.
"For each of the three drivers of growth and profitability - investment in markets, investment in products, and operational efficiency - we have formulated concrete individual measures and have already implemented some of these," says Riet Cadonau. The measures correspond with Kaba Group's accentuated strategy, as presented a year ago. This strategy establishes the aim of innovation leadership for the two Access + Data Systems divisions, which is why the largest division, ADS EMEA/AP, is investing more in innovation. For the Key Systems division, cost leadership has been defined as the strategic goal, so during the last financial year various measures have been implemented and additional programs launched.
"On this basis, and if the markets perform as expected, we are confident of reaching the medium-term targets announced in November 2011, and so we can confirm these targets," explains Kaba's CEO Riet Cadonau. Kaba is basing its forecasts on the expectation that the Eurozone economy will be stagnant in the 2012/2013 financial year, then will start to recover in the 2013/2014 financial year, and finally will see growth again in the 2014/2015 financial year.
Kaba expects continued growth in the other markets relevant to its business.