Access solutions in transition: focus on growth
Dormakaba is realigning its "Shape to Growth" strategy and focusing on innovation and efficiency. With reduced complexity and increased performance, the company aims to become the leading provider of access solutions.
Dormakaba is shifting its strategy implementation from “Shape to Growth”. “Our strategic transformation is on track and is delivering lasting and tangible improvements in results,” explained CEO Till Reuter in a statement on the occasion of the Capital Markets Day 2024 of the globally active locking technology company from Rümlang. Now dormakaba wants to gradually focus on growth. Specifically, the company wants to “become the leading provider of access solutions by connecting the physical and digital worlds”, said Reuter.
Growth is to be generated by increasing performance and innovation and reducing complexity in the portfolio and supply chain. For example, dormakaba plans to reduce its software platforms by around half. The hardware portfolio is to be made modular, starting with the door closers. The supply chains will be trimmed for resilience, simplicity and cost efficiency. In doing so, dormakaba is focusing on best-cost countries and the respective local production networks.
The “consistent implementation” of the ongoing transformation program remains “the central key to achieving our medium-term goals,” explains Reuter. In order to increase performance, the company is also implementing new measures in the areas of productivity, shared business services, automation and digitalization. These are expected to generate additional savings of CHF 40 million over the next few years. For financial year 2025/26, dormakaba expects an adjusted EBITDA margin of between 16 and 18 percent.