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In its latest trading update for the period 1 January-31 March 2024, ISS has reported a promising start to the year.
With continued business improvements, organic growth was 6.0% in Q1 2024 (Q1 2023: 12.0%), mainly driven by successful implementation of price increases to offset wage increases and general cost inflation and volume growth and total revenue for the quarter amounted to DKK 20.1 billion (Q1 2023: DKK 19.3 billion).
The global workplace experience and facilities management firm also confirmed that operating margin developed in line with its plan. This was mainly driven by continued operational improvements and efficiencies. Costs related to mobilisation of contracts won in 2023 have been incurred in the quarter.
During the first months of the year, ISS has secured several smaller and mid-sized local IFS contract wins and extended contracts with Nordea and a global bank.
ISS has also strengthened its position in the Swiss market with the bolt-on acquisition of gammaRenax, which adds scale within prioritised service lines and customer segments. The transaction will add around 0.6% to Group annual revenue and was completed at the end of April 2024.
At the beginning of April 2024, the divestment of ISS France was completed. Financial leverage remains broadly unchanged following the divestment.
For 2024, ISS expects organic growth to be 4-6%, with operating margin expected to be above 5%.
Kasper Fangel Group CEO, ISS A/S, commented: “I’m pleased that we had a promising start to the year with robust organic growth and continued business improvements. We have strengthened our operational execution in our markets and the expected financial outcomes are being realised. This is a testament to the professionalism and dedication of our more than 350,000 employees worldwide, without whom ISS would not be the company we are today.
“Creating opportunities for our people goes hand in hand with achieving commercial results, and this is why we are now advancing our efforts in social sustainability even further. For instance, through initiatives such as our new ‘Education for All’ programme in India, where ISS is funding employees to complete their 10th to 12th grade education.”
On 3 June 2024, Mads Holm will take up the position as Group CFO and member of the Executive Group Management Board.
