Other Business

Other Business encompasses Gunnebo’s offering in electronic security, fire security and loss prevention for the retail trade. The Business Unit consists of a number of local operations, each with its own market conditions and strategic direction. Other Business represents 11% of Group sales.

The Business Unit comprises three main offerings:

  • Integrator businesses for electronic security in Mexico that offer project-based solutions for entrance control, intruder security and video surveillance
  • Electronic article surveillance (EAS) and loss prevention in Brazil, encompassing anti-theft systems and solutions for the retail and the fashion industries
  • Fire safety projects aimed at integrating fire security systems on major sites under the Gunnebo brand in India and Indonesia. Fire safety also includes the sale of fire hydrants, fire extinguishers and flexible sprinkler piping under the Minimax brand in India

11

%

of Group Sales

Global market for Other Business

Gunnebo estimates that the total market value for Other Business is over BSEK 400. The annual market growth during 2019, according to the Group’s assessment, is 3%. Gunnebo estimates itself to have a limited market share of less than 1% globally, but with a stronger position in certain geographies.

Performance 2020

During 2020 a focus has been to evaluate each operation within the Business Unit in order to secure its profitability potential. As a result, a number of transactions has taken place during the year where operations have been divested. In July, Gateway, the Swedish operation for EAS and loss prevention, was divested, including associated companies. In October the Iberian (Spanish and Portuguese) integrator business for electronic security was divested to a Spanish industrial player, and in mid-December the divestment of the Swedish integrator business for electronic security was finalised. These transactions are also in line with Gunnebo’s strategy to create more focus on Business Units Entrance Control, Safe Storage and Cash Management.

Share of Group – Other Business

Other Business (graph)
Other Business (graph)

The Business Unit was heavily negatively impacted by the pandemic during the year. Operations in certain main markets were severely restricted or closed during 2020, resulting in a much lower demand across a range of products. Service and installation have been negatively affected due to lock-downs and government restrictions.

Alongside dealing with the adverse effects of the pandemic, measures to improve underperforming operations have continued according to plan. Since operations within Other Business differ in terms of business model, geographic presence and focus, targeted measures have been taken.

For 2020, the Business Unit’s EBITA amounted to MSEK –54 (–3), resulting in a margin of –11.3% (–0.3) where the effects of the pandemic were the main cause of the very weak result development.

 

2020

2019*

Net sales, MSEK

480

858

Sales growth, %

–29

–10

EBITA, MSEK

–54

–3

EBITA, %

–11.3

–0.3

*

From Q1, 2020, Other Business was presented according to a new reporting structure with updated historical key performance measures, as approximately 20% of operations were merged into Safe Storage and Entrance Control. For the full year 2019, this corresponded to a sales level of MSEK 858 compared with MSEK 1,099.

Brands and manufacturing units

Gunnebo brands

Manufacturing units

  • Halol (IN)
  • Cincinnati (US)