ISS releases new fact and figures for 3rd Quarter of 2023
ISS has published its facts and figures for Q3 2023. „Organic growth was 9.3% in Q3 2023 and 10.7% for the first nine months of 2023. Total revenue for the quarter amounted to DKK 20.0 billion“, according to a press release.
The continued strong organic growth in Q3 2023 was driven by price increases and underlying volume growth. Organic growth for projects and above-base work was slightly positive. The OneISS strategic direction remains unchanged. Now, three years after the launch of the strategy, the new and streamlined Executive Group Management team has reviewed and prioritised OneISS initiatives to ensure all initiatives generate the expected value and strengthen the strategic execution“, the release further reads.
The enhanced focus on strategic initiatives is expected to generate operational benefits and cost savings of an estimated DKK 200-250 million annually with the majority expected to have effect in 2024. Related to the review, one-off costs of around DKK 200-250 million are expected to be recognised in H2 2023. Improvements in underlying margin have been realised, and ISS is well on track to deliver the targeted operating margin of above 5% in 2024. Commercial development remained solid, and customer retention rate was maintained at a high level at 95% (LTM).
Kasper Fangel Group CEO, ISS A/S, says: "It is satisfying that our strong growth and development throughout 2023 was maintained in the third quarter. ISS is well on track to deliver on our financial targets for 2024. The demand for our services is still increasing across markets and we are constantly focusing on improving our service offerings whilst delivering best-in-class service experiences for our many customers world-wide - achieved through the tireless efforts of our more than 350,000 dedicated placemakers. The OneISS strategy execution continues to drive value. We launched the strategy three years ago and during the second half of this year we have reviewed and focused the strategic initiatives to further improve the execution, accelerate strategic development and continue to build a stronger and value-creating ISS."
