Earlier today, ISS Holding A/S announced its financial results for the first quarter of 2008
Copenhagen, 29 May 2008 – Earlier today, ISS announced its financial results for the first quarter of 2008.
Revenue amounted to DKK 16.367 billion, up 10% compared with the same period in 2007. At DKK 772 million, operating profit before other items increased by 11% relative to the same period of 2007.
The operating margin was 4.7% in Q1 2008 and the company recorded organic growth of 6%, both figures being at the same level as in Q1 2007.
Group CEO Jørgen Lindegaard had the following comments on the first-quarter performance:
“ISS once again recorded strong quarterly financial performance. We are very pleased to see our revenue and operating profit improving by double-digit growth rates relative to the same period last year. Furthermore, in our industry and in ISS, operating margins are traditionally lower in the first quarter and higher in the third quarter compared with the other quarters and the full year.”
He continued: “Also, we are very satisfied that we were able to retain our organic growth rate at 6% relative to the same period of last year and compared with 2007 as a whole. This 6% organic growth rate was achieved on the back of double-digit growth rates in Asia, Latin America and Central and Eastern Europe. In these three growth regions, our operating profit also improved by double-digit figures. Consequently, nearly one-third of the 16 acquisitions we made in Q1 2008 took place in these three regions.
Operating margins were up in all regions with the exception of Western Europe and the Pacific.
- The biggest increase occurred in Latin America, which generated an operating margin increase to 5.8% in Q1 2008 from 5.0% in the same period of 2007. All countries in the region contributed to the improvement, with Mexico as the main contributor.
- In Asia, the operating margin rose from 5.7% to 6.3% driven by rising operating margins in Hong Kong, Taiwan and India.
• In Central and Eastern Europe, the margin climbed from 5.3% in Q1 2007 to 5.6% in Q1 2008, driven primarily by improvements in Romania and Russia.
- In the Nordic region, the operating margin improved to 5.3% from 5.2% the year before.
- In the Pacific region, the margin fell from 5.9% to 5.6%, driven by Australia and New Zealand.
- In Western Europe, the margin declined from 5.1% to 4.8% because of an anticipated decrease in France and difficult market conditions in the Netherlands and Austria, where measures have been taken to adjust the organisation. However, this decline was offset by improving margins in Belgium, Switzerland and Portugal.
The net loss for the period was DKK 163 million, against a loss of DKK 160 million in the same period of 2007. The result was positively impacted by an improved operating profit before other items of DKK 75 million. This improvement was more than offset by non-cash amortisation of customer contracts after tax and higher financial expenses, including exchange rate losses and higher interest expenses for the financing of new acquisitions.
ISS continues to forecast revenue growth of more than 10% for its continuing operations, which do not comprise the divested energy activities in France and are adjusted for exchange rate changes. The operating margin is expected to be retained at the same level as in 2007.
Financial highlights and key ratios of ISS A/S for Q1 2008:
Amounts in DKK million* Revenue Operating profit** Net loss for the period Operating margin Organic growth |
Q1 2008 16,367 772 (163) 4.7 % 6 % |
Q1 2007 14,930 697 (160) 4.7 % 6 % |
Change + 10 % + 11 % |
* Except percentages
** Before other items
Forward-looking statements
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For further information, please contact:
Group CEO Jørgen Lindegaard
Tel. +45 38 17 00 00
Group COO and Group CFO Jeff Gravenhorst
Tel. +45 38 17 62 66
About the ISS Group
The ISS Group is one of the world's leading Facility Services Groups, providing integrated service solutions based on the core business areas of Cleaning, Catering, Office Support, Property Service and Security. The ISS Group generated revenue of almost DKK 64 billion in 2007 and employs more than 440,000 people in 50 countries across Europe, Asia, USA, Latin America and Pacific.