Stockholm, Sweden – Loomis AB (STO:LOOMIS), a leading cash handling company, saw its stock price climb by 9% after announcing a robust financial performance for the second quarter. The company reported a significant 21% increase in net income, reaching SEK 478 million, while its operating margin hit a record high of 12.7%.
Despite a 3% decline in revenue to SEK 7.41 billion, primarily due to negative currency impacts, Loomis demonstrated strong underlying growth with an organic increase of 3.8%. Both the U.S. and Europe/Latin America segments contributed positively to the results, showing improved operating income and margins. The Automated Solutions division notably achieved double-digit organic growth, highlighting its expanding success. Furthermore, the SME/Pay segment reported increased revenue and a reduced operating loss, indicating progress in these areas.
While cash flow from operating activities and free cash flow experienced a decrease, which the company attributed to changes in working capital, Loomis continued its strategic initiatives. The company proceeded with its share buyback program and successfully completed the acquisition of Burroughs, Inc., which has already begun contributing to its revenue streams. Following the close of the second quarter, Loomis further expanded its presence with additional acquisitions in Spain and Switzerland.
For the first half of the year, Loomis reported overall increases in revenue, net income, and operating income, though net debt also saw a rise. The company is also actively pursuing its sustainability goals, having recently signed an agreement to source biofuel as part of its efforts to reduce CO2e emissions.
