20.02.2020 Krones AG  DE0006335003

DGAP-News: Krones AG: Krones achieves full-year growth target for 2019


 

DGAP-News: Krones AG / Key word(s): Preliminary Results
Krones AG: Krones achieves full-year growth target for 2019

20.02.2020 / 07:28
The issuer is solely responsible for the content of this announcement.


Corporate News Release
20 February 2020

Krones achieves full-year growth target for 2019

- Despite difficult overall economic conditions, consolidated revenue increased in 2019 by 2.7% to €3.96 billion.

- Order intake, at €4.08 billion, was up 3.2% year-on-year.

- Profitability affected by high personnel costs and one-time expenses for restructuring and impairments. The EBT margin is 1.1% (prior year 5.3%). Without one-off effects, the EBT margin would be 2.8%, in line with the guidance of around 3%.

- Krones is making good progress in implementing structural measures for a sustained improvement in earnings.

Krones, the world's leading manufacturer of filling and packaging technology, achieved its 3% growth target in 2019 despite the difficult overall economic environment. Revenue increased by 2.7% year-on-year, from €3,854.0 million to €3,958.9 million.

The company's order intake improved by 3.2%, from €3,957.3 million in the previous year to €4,083.5 million in 2019. Krones benefited from a strong year-end. The contract value of orders was up 10.7% year-on-year in the fourth quarter of 2019. At the end of 2019, the company had orders on hand totalling €1,385.7 million. This exceeded the already high prior-year order backlog of €1,261.1 million by 9.9%.

High costs, product mix and structural measures hit profitability

Krones' earnings were hit in 2019 by high cost increases, especially for labour. The product mix also had a negative impact on profitability. In the first half year, the company had poor production capacity utilisation in plastics technology due to temporarily weak demand. Consolidated earnings before taxes (EBT) decreased from €204.3 million in the previous year to €41.7 million in 2019. The EBT margin dropped from 5.3% to 1.1%. It should be noted in this connection that Krones recognised provisions and impairments totalling around €70 million in the fourth quarter of 2019 for measures to cut personnel expenses and streamline the portfolio. About €30 million of this relates to expenses and provisions for the job reductions in 2020. Impairment losses totalling around €20 million were incurred for certain direct printing technologies that Krones is partly not pursuing further. A further amount of approximately €20 million relates to goodwill impairments. Without these expenses the EBT-margin would be 2.8%. As a result Krones is in line with the revised margin target of around 3% published in July 2019.

Mainly because of the new IFRS 16 accounting standard and the impairment losses, Krones' depreciation and amortisation rose substantially in 2019 to €183.3 million (previous year: €102.7 million). EBITDA, which is unaffected by this, decreased less sharply than EBT in 2019, falling from €305.9 million to €227.3 million. The EBITDA margin was 5.7% (previous year: 7.9%).

High working capital reduces free cash flow

Free cash flow went down in the full year 2019 to a negative €94.4 million (previous year: positive €120.7 million). The reduction in free cash flow was mainly due to higher working capital at year-end. However the average working capital over the past four quarters as a percentage of revenue decreased from 27.3% in the previous year to 26.9% and was slightly above the 26% targeted for 2019. Net cash and cash equivalents, meaning cash and cash equivalents less bank debt, came to €38.1 million at the end of the reporting period (previous year: €215.1 million). The equity ratio was 41.3% (previous year: 43.2%). Overall, Krones continues to possess a robust financial and capital structure.

All stated figures are preliminary and are subject to change in the course of auditing by the independent auditors.

Krones making good progress with structural measures

Krones publishes its Annual Report for 2019 and outlook for 2020 on 19 March 2020. On the same day, the company will also provide further details of structural measures to secure sustained improvements in Krones' efficiency and profitability. Krones is making good progress with implementation of the measures, which include a reduction in the workforce. The Executive Board is confident that the measures will already have a positive impact on earnings in 2020.

Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Tel.: +49 9401 70-1169
E-mail: [email protected]



20.02.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Krones AG
Böhmerwaldstraße 5
93073 Neutraubling
Germany
Phone: +49 (0)9401 701169
Fax: +49 (0)9401 709 1 1169
E-mail: [email protected]
Internet: www.krones.com
ISIN: DE0006335003
WKN: 633500
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange
EQS News ID: 979617

 
End of News DGAP News Service

979617  20.02.2020 

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Die wichtigsten Finanzdaten auf einen Blick
  2015 2016 2017 2018 2019 2020 2021e
Umsatzerlöse1 3.173,51 3.391,25 3.691,36 3.853,98 3.958,88 3.322,74 3.608,00
EBITDA1,2 305,30 320,83 340,19 305,89 227,26 133,22 278,00
EBITDA-Marge3 9,62 9,46 9,22 7,94 5,74 4,01 7,71
EBIT1,4 216,91 227,98 245,47 203,15 43,95 -40,81 135,00
EBIT-Marge5 6,84 6,72 6,65 5,27 1,11 -1,23 3,74
Jahresüberschuss1 156,26 169,10 187,13 150,60 9,24 -79,71 92,00
Netto-Marge6 4,92 4,99 5,07 3,91 0,23 -2,40 2,55
Cashflow1,7 174,43 194,67 -5,86 315,05 93,53 321,77 0,00
Ergebnis je Aktie8 4,98 5,40 5,97 4,78 0,30 -2,52 2,90
Dividende8 1,45 1,55 1,70 1,70 0,75 0,06 0,75
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2020 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: Ernst & Young

INVESTOR-INFORMATIONEN
©boersengefluester.de
Krones
WKN Kurs in € Einschätzung Börsenwert in Mio. €
633500 87,550 Halten 2.765,97
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
18,24 19,75 0,92 28,53
KBV KCV KUV EV/EBITDA
2,31 8,60 0,83 21,49
Dividende '20 in € Dividende '21e in € Div.-Rendite '21e
in %
Hauptversammlung
0,06 0,75 0,86 31.05.2022
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
06.05.2022 03.08.2021 05.11.2021 24.03.2022
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
1,27% 12,98% 32,55% 65,81%
    
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Maschinen-/Anlagenbau , 633500 , KRN , XETR:KRN