Loomis stock rises 9% as margin hits record, profit jumps 21% in Q2

Investing.com -- Loomis (ST:LOOMIS) shares rose more than 9% on Friday after the company reported a 21% increase in second-quarter net income to SEK 478 million, up from SEK 396 million a year earlier, as the operating margin reached a record 12.7%.

Revenue fell 3% to SEK 7.41 billion from SEK 7.64 billion, weighed by a negative currency impact of 7.9%. Organic growth was 3.8%, and acquisitions added 1%.

Operating income rose to SEK 944 million from SEK 887 million. EBITA before items affecting comparability was SEK 882 million, with the margin improving to 11.9% from 10.9%. Earnings per share increased to SEK 7.01 from SEK 5.65.

Income before taxes rose to SEK 664 million from SEK 550 million. Financial expenses declined to SEK 150 million from SEK 186 million. The tax rate remained at 28%.

The U.S. segment reported revenue of SEK 3.81 billion, down from SEK 3.97 billion, with organic growth of 4.2% and a negative currency impact of 10.1%.

Operating income rose to SEK 623 million from SEK 603 million, and the margin improved to 16.4% from 15.2%. Automated Solutions, including SafePoint, posted double-digit organic growth.

Europe and Latin America revenue was SEK 3.62 billion, compared with SEK 3.67 billion a year earlier. 

Organic growth was 4.1%. Operating income rose to SEK 445 million from SEK 402 million, and the margin increased to 12.3% from 11%. Restructuring costs totaled SEK 96 million.

The SME/Pay segment reported revenue of SEK 43 million, up from SEK 28 million. Transaction (JO:NTUJ) volume in Loomis Pay reached SEK 2.3 billion. The operating loss narrowed to SEK 41 million from SEK 55 million.

Cash flow from operating activities dropped to SEK 550 million from SEK 1.11 billion, reflecting changes in working capital. Free cash flow fell to SEK 13 million from SEK 644 million.

Loomis repurchased 535,300 shares during the quarter at a cost of SEK 200 million. The company held 549,953 treasury shares as of June 30. A new buyback program of up to SEK 200 million was approved for the third quarter.

On June 1, Loomis completed the SEK 370 million acquisition of U.S.-based Burroughs, Inc., which contributed SEK 77 million in revenue for the month. 

Burroughs reported $107 million in revenue for 2024. Post-quarter, Loomis announced the acquisitions of Spain-based Central Cash and Sighore-ICS, and a deal to acquire Kipfer-Logistik in Switzerland, expected to close on Sept. 1.

For the first half, revenue rose to SEK 15.07 billion from SEK 14.89 billion. Net income reached SEK 860 million, up from SEK 755 million. 

Operating income (EBITA) rose to SEK 1.83 billion from SEK 1.64 billion, and the margin improved to 12.1% from 11%.

Net debt increased to SEK 12.01 billion from SEK 10.65 billion. Liquidity stood at SEK 2.03 billion. The net debt to EBITDA ratio was 1.75.

Loomis signed an agreement with bp Energía España to source biofuel across 10 European countries, aiming to reduce CO₂e emissions by 34% by 2027 and 48% by 2030 compared to 2019 levels.

Full-time employees totaled approximately 24,400 at quarter-end, down from 24,700 at year-end.