Organic Growth Leads ISS to $3B in 1Q Revenue

COPENHAGEN -- Organic growth of 6 percent in the first quarter led FM services provider ISS to sales of nearly $3 billion.

While European companies report quarterly on their revenues and trade, they post profits and losses twice a year.

At the end of 2023, ISS reported an annual profit of $36.2 million, or 22 cents a share, on sales of $11 billion, compared to a profit of $22 million in 2022, or 22 cents a share, on sales of $10.6 billion.

Organic growth development was mainly driven by successful implementation of price increases to offset wage increases and general cost inflation and volume growth.

For the Americas segment, revenue amounted to $323 million in the first three months of 2024, which was a decrease of 4% compared with the same period last year. Organic growth was negative 2% (Q1 2023: 22%) and the effect from acquisitions and divestments, net was neutral, while currency effects impacted growth negatively by 2%.

The negative organic growth was primarily driven by contract exits and losses from 2023, including deliberate exists, having a full effect in the quarter.

This was only partly offset by price increases implemented and volume growth due to continued increased activity levels across the region. This development positively impacted food services, and this service line reported positive organic growth.

Portfolio revenue declined organically by 1%, while revenue from projects and above-base work declined organically by 7%, impacted by contract exits and losses. The negative organic growth was predominately driven by the US, however partly offset by Mexico and Chile reporting robust organic growth rates.

The company has assets of $6.88 billion, and liabilities of $5.35 billion.