Loomis Q3 profit rises as acquisitions, efficiency offset currency drag

Loomis AB on Friday reported a rise in third-quarter net profit, as contributions from recent acquisitions and improved efficiency helped counter a strong Swedish krona that weighed on revenue.

The Stockholm-based cash-handling company said net income for the quarter increased to 528 million Swedish kronor from 481 million kronor a year earlier.

Revenue was largely flat at 7.64 billion kronor, but grew 7.1% on a currency-adjusted basis, with organic growth of 3.9%, according to the company.

Acquisitions, including four completed during the quarter, contributed 3.2% to growth.

The company's operating margin improved to 13.2% from 12.9%, which Loomis attributed to its business mix and higher efficiency.

"We had a strong operating cash flow, which was close to SEK 1 billion for the quarter," the company said in its report.

Operating cash flow for the quarter was 978 million kronor, down from 1.31 billion kronor in the same period last year.

Loomis repurchased 200 million kronor worth of its own shares during the period and said its board has approved continuing the buyback program in the fourth quarter.