Feb 24 (Reuters) - Swiss access solutions provider Dormakaba reported a 20% fall in its half-year profit on Tuesday, missing market expectations, after unfavourable currency exchange rates affected
Dormakaba Reports 20% Profit Decline, Affirms US Growth Strategy
By Mirko Miorelli and Bernadette Hogg
Feb 24 (Reuters) - Swiss access solutions provider Dormakaba reported a 20% fall in its half-year profit on Tuesday, missing market expectations, hit by soft demand in the North American hospitality market and unfavourable currency exchange rates.
Market Reaction and Share Performance
Shares fell more than 6% in early trading, hitting their lowest price since September 2024.
The security group, based in Rümlang near Zurich, said its net profit was 77.4 million Swiss francs ($99.7 million) in the six months through December. Analysts polled by it were expecting 85.7 million francs on average.
It said good sales growth in access solutions in Europe, and particularly in Germany and Switzerland, compensated for softer demand in the North American hospitality space and a softer residential market in Australia.
Commitment to US Market Expansion
Dormakaba, whose entrance systems can be found in venues such as offices, commercial buildings, airports and sports stadiums, stood by its plans for U.S. expansion. CEO Till Reuter said the company was shifting resources from Europe to the U.S. to enhance product development and R&D investments there.
It said in September it aimed to increase revenue from its key access solutions business in North America to more than 1 billion Swiss francs by the 2027/28 financial year.
Reuter, who became CEO in January 2024, reiterated that Dormakaba's local-for-local manufacturing was its best hedge against tariff volatility. It continues to pass on costs from U.S. President Donald Trump's import duties to the end customers, finance chief René Peter added.
Financial Outlook and Currency Impact
The group confirmed its outlook for the 2025/26 financial year, including organic sales growth of between 3% and 5% and an adjusted EBITDA margin exceeding 16%. However, the CEO told Reuters that sales growth was expected to be at the lower end of that range.
Exchange rate effects, related to the strength of the Swiss franc versus other major currencies, are expected to pull net sales around 4% lower in the second half of the year, Peter said.
($1 = 0.7763 Swiss francs)
(Reporting by Mirko Miorelli and Bernadette Hogg in Gdansk, editing by Milla Nissi-Prussak)
