Loomis AB

Loomis AB, a Swedish cash handling company with approximately SEK 24 billion in revenue (2021), operated primarily in two service lines: Cash in Transit (CIT) — transporting cash between stores, banks, and ATMs — and Cash Management Services (CMS) — processing and counting cash at Loomis cash centers. The CIT business was labor- and capital-intensive, with thin margins driven by fuel costs, armored vehicle maintenance, and driver labor. Loomis needed to shift its revenue mix toward higher-margin CMS and technology-enabled services to improve profitability and reduce dependence on the commodity transport segment. The company set financial targets of achieving an EBITA margin within a defined target range and sustaining above-market organic growth.

From 2021 through 2024, Loomis executed a strategy to grow its higher-margin Cash Management Services faster than the traditional Cash in Transit business. Key actions included:

• SafePoint technology deployment: Expanded deployment of smart safes at retail locations that count, validate, and report cash in real time. SafePoint converts a batch cash pickup into a continuous data stream, enabling provisional credit to retailers and reducing physical pickup frequency.
• Cash Management Services growth: Invested in automated cash processing centers that use high-speed sorting and counting machines to replace manual cash handling, improving throughput per employee and reducing error rates.
• Service bundling strategy: Bundled CIT, CMS, and SafePoint into integrated cash management solutions sold on recurring contracts, increasing average revenue per customer and raising switching costs.
• Operational efficiency: Optimized route planning and logistics to improve CIT productivity, reducing cost per stop while maintaining service quality. The company drove currency-adjusted average growth of 11.8% over the three-year strategy period ending in 2024, significantly exceeding its targets.

• Record revenue: Full-year 2024 revenue reached SEK 30.4 billion, representing growth of 6.0% with organic growth of 6.6%.