Business Description

Allegion Plc provides security products and solutions that help people stay safe, secure, and productive. It operates through three geographical segments: the Americas, the Middle East, India, Africa (EMEIA), and the Asia Pacific. The Americas section sells a variety of products and solutions including locks, locksets, portable locks, key systems, and exit devices, electronic products, time attendance, and access control systems.

The EMEIA section offers the same products as the Americas, plus time and attendance and productivity solutions. The Asia Pacific region also provides the same product range and video analytics solutions. The company was established on May 9, 2013, and is based in Dublin, Ireland.

Key Financials

Revenue (US$ Mn):

• US$ 2,867 Mn was the annual revenue generated by Allegion Plc in 2021
• Allegion Plc’s annual revenue for 2020 was US$ 2,720 Mn, a -4.7% decrease from 2019
• From 2018’s annual revenues, Allegion Plc registered a 4.48% increase in 2019, amounting to US$ 2,854 Mn
• Total revenue of US$ 2,732 Mn was generated in 2018 by Allegion Plc

Operating Income (US$ Mn):

• Allegion Plc’s operating income for 2021 was US$ 530 Mn, a 31.4% increase from 2020
• The operating income generated by Allegion Plc in 2020 was US$ 404 Mn
• At a 7.47% increase from, Allegion Plc’s operating income of US$ 565 Mn was indexed in 2019
• Allegion Plc generated an operating income of US$ 526 Mn in 2018

Net Income (US$ Mn):

• Allegion Plc’s net income for 2021 was US$ 473 Mn, a 50.49% increase from 2020
• The net income generated by Allegion Plc in 2020 was US$ 315 Mn
• At a -7.65% decrease from , Allegion Plc’s net income of US$ 402 Mn was indexed in 2019
• Allegion Plc generated a net income of US$ 435 Mn in 2018

Operating Margin %:

• 18% was the operating margin generated by Allegion Plc in 2021
• Allegion Plc’s operating margin for 2020 was 15%, a -25.25% decrease from 2019
• From 2018’s operating margins, Allegion Plc registered a 3.13% increase in 2019, amounting to 20%
• An operating margin of 19% was generated in 2018 by Allegion Plc

Gross Margin %:

• Allegion Plc’s gross margin for 2021 was 17%, a 43.48% increase from 2020
• The gross margin generated by Allegion Plc in 2020 was 12%
• At a -11.95% decrease from , Allegion Plc’s gross margin of 14% was indexed in 2019
• Allegion Plc generated a gross margin of 16% in 2018

SWOT Analysis

Strengths

R&D is the focus

Allegion invests in technology to create high-performance security products. The company’s continued focus on R&D allows it to adapt to changing market demands and increase its profits. The company’s primary focus is on the development and maintenance of electro-mechanical systems. It is also committed to developing technologically advanced products and services. It also strives to continuously improve quality, product cost, safety, and sustainability. Allegion has regional R&D centers in each geographical location. It also has a global engineering center of excellence in Bangalore, India. It spent US$54.7 Million on R&D in FY2019. This represented 1.9% of its revenue.

Business Performance – Americas Segment

The major contributor to the company’s revenue stream was its Americas segment. The company has operations in 30 countries throughout North America, Central America, and the Caribbean. The segment saw revenue of US$2,114.5 million in FY2019. This accounted for 74.1% and reported 6.3% year-on-year growth. This improvement was due to a 0.3% increase in acquisitions, a 4% increase in product volume, and a 2.2% price increase. In FY2019, the segment reported an operating income of US$611.6million. This was 12.3% higher than in the previous year.

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