Interview with Klas Elmberg, CFO and IR Director at Coor
How does Coor create growth?
“Coor sells efficiency and does so by offering high-quality services. That’s why our customer retention rate is so high, and we also know how to take advantage of local economies of scale.”
As CFO, what were your main focus areas in the past year?
“My primary focus was to secure our cash flow, keep costs down and protect our earnings. The key reason why we remained so stable during the year is our business model, where 70–75 per cent of our revenue comes from fixed subscriptions that are partly invoiced in advance. Coor has a good customer base, with stable customers who value their partnership with Coor.”
What strategy has Coor had for dealing with the COVID-19 crisis?
“Most important, of course, has been to ensure the health and safety of our employees and customers. We have always operated based on a customer-oriented business model and that has also been a strength during this crisis. We look at each customer contract individually and identify customer-specific solutions that stand the test of time. Coor’s decentralised organisation based on local contract managers with broad responsibilities and mandates has been a crucial asset during the pandemic. It enabled us to quickly manage the crisis in our line organisation, with support from management of course and from the crisis manage- ment teams that were established in each country. Thanks to our strong local leadership, we have been both flexible and fast.”
What effect has the pandemic had on Coor’s business areas?
“The pandemic has affected them in very different ways. Food & beverages has suffered the biggest loss of revenue, while our property services business area has been relatively stable, though not completely unaffected. Demand for cleaning services, on the other hand, has increased so far, and we expect this demand to be sustained after the crisis. In 2020, cleaning evolved from a commodity to a craft. People now realise that it is not possible to run a business without a systematic approach to hygiene and safety, and most people want to work with large professional companies such as Coor.”
Is sustainability still high on the agenda?
“Absolutely. Sustainability is a key issue for us at Coor and for our customers and investors. Coor is doing well in this area and is taking a focused approach to sustainability.”
What do you see happening in Coor’s future?
“We expect that our customers will continue to need efficient facility management solutions in the future, and with our customer-oriented business model we are well positioned to be the right partner for both the private and the public sector. Coor is also seeing strong demand in the market and attractive business opportunities throughout the Nordic region. We believe our prospects of achieving growth, profitability and cash flow in line with our targets over time are very good.”