ISS A/S

Latest Results (14.08.2024):

Revenue Growth

ISS A/S reported a total revenue of DKK 20.4 billion for Q4 2023, contributing to a full-year revenue of DKK 78.7 billion. This represents a 6.6% increase from the previous year, driven by organic growth of 9.7% for the full year 2023, primarily due to price increases and underlying volume growth.

Operating Margin

The underlying operating margin for ISS A/S improved to 4.6% for the full year 2023, up from 4.0% in 2022. In the second half of 2023, the operating margin further increased to 5.5%, compared to 4.8% in the same period of the previous year. However, one-off costs related to the review of OneISS initiatives resulted in a reported operating margin of 4.3% for 2023.

Free Cash Flow

ISS A/S generated a free cash flow of DKK 1.8 billion for the full year 2023, slightly up from DKK 1.7 billion in 2022. This positive cash flow was influenced by increased operating profit and inflow from changes in working capital. The company expects free cash flow to remain above DKK 1.8 billion in 2024, despite some adverse timing effects.

Dividends and Share Buyback

Based on the financial results for 2023, ISS A/S's Board of Directors will propose a dividend of 20% of adjusted net profit, equating to DKK 2.3 per share. Additionally, the company has initiated a share buyback programme worth DKK 1 billion, to be executed over a 12-month period, reflecting confidence in its financial stability and future prospects.

Financial Leverage

At the end of 2023, ISS A/S's financial leverage was 2.2x, down from 2.6x in 2022, which is within the targeted range of 2.0-2.5x. This reduction in leverage indicates improved financial health and provides the company with greater flexibility for future investments and shareholder returns.