DGAP-News: Krones AG: Krones continues growth with stable profitability
DGAP-News: Krones AG / Key word(s): Preliminary Results
Krones AG: Krones continues growth with stable profitability
22.02.2018 / 08:00
The issuer is solely responsible for the content of this announcement.
Corporate news release
22 February 2018
Krones continues growth with stable profitability
in 2017
- Revenue increased 9% to EUR3.69 billion. Adjusted for acquisitions, growth reached 7%.
- Order intake increased 10%. Excluding acquisitions, orders were up 7%.
- Krones kept profitability stable. The EBT margin was once again 7.0%.
- Revenue and earnings are expected to increase further in 2018.
Krones, the world's leading manufacturer of filling and packaging technology, continued its stable growth in 2017. Revenue increased 8.8% year-on-year from EUR3,391 million to EUR3,691 million. Adjusted for acquisitions, revenue was up 7.2% year-on-year. The main reason was that Krones was able to invoice more projects than expected in the fourth quarter. Order intake was up 10.0% year-on-year to EUR3,787 million in 2017. Adjusted for acquisitions, the increase was 7.1%. At the end of 2017, the company had orders on hand totalling EUR1,240 million, which is 8.3% more than the previous year.
Krones broad international diversification and comprehensive portfolio of products and services also served the company well in 2017.
The EBT margin was stable at 7.0%
Krones further increased earnings before taxes (EBT) as forecast in 2017. EBT improved 8.9% year-on-year to EUR259 million. The EBT margin remained stable at 7.0%, as in the year-earlier period. Thus, Krones met its EBT margin target for 2017. As expected, market prices provided no support. Krones was able to offset increased costs with increased efficiency. Expanding our global footprint and general cost-cutting measures helped here.
Krones still has a very robust financial and capital structure
The ratio of average working capital for the past four quarters to revenue was up from 26.7% in the previous year to 27.3% in 2017. The target for 2017 was 27%. The company is not satisfied with the development of free cash flow, which decreased to -EUR151 million (2016: +EUR49 million). As a result, net cash and cash equivalents (that is, cash and cash equivalents less liabilities to banks) decreased to EUR157 million (previous year: EUR369 million). The company's equity ratio improved to 43.8% (previous year: 39.9%). Overall, Krones continues to possess a very robust financial and capital structure.
All figures stated here are provisional and may change following completion of the audit.
Outlook
Based on the current macroeconomic prospects and developments in the markets relevant to Krones, the company expects consolidated revenue to grow by 6% in 2018. Profitability is expected to remain stable despite investment in digitalisation and start-up costs associated with expanding the company's global footprint, in particular for the new site in Hungary. Krones expects to post an EBT margin of 7.0% in 2018. The company's third financial performance target, working capital to revenue, is expected to improve to 26%.
Krones will publish its annual report for 2017 on 15 March 2018.
Figures for 2017
2017
2016
Change
Revenue
EUR million
3,691.4
3,391.3
+?8.8%
Order intake
EUR million
3,786.8
3,441.3
+?10.0%
Orders on hand at 31 December
EUR million
1,240.1
1,144.7
+?8.3%
EBITDA
EUR million
340.2
320.8
+?6.0%
EBIT
EUR million
245.5
228.0
+?7.7%
EBT
EUR million
258.8
237.6
+?8.9%
EBT margin
%
7.0
7.0
± 0.0 PP*
Consolidated net income
EUR million
187.1
169.1
+10.7%
Earnings per share
EUR
5.97
5.40
+?10.6%
Free cash flow
EUR million
-?150.7
49.2
-EUR199.9 million
Net cash and cash equivalents**
at 31 December
EUR million
157.4
368.9
-?EUR211.5 million
Working capital to revenue?***
%
27.3
26.7
+?0.6 PP*
ROCE
%
16.6
17.0
-?0.4 PP*
Employees at 31 December
Worldwide
15,299
14,443
+?856
Germany
10,366
10,061
+?305
Outside Germany
4,933
4,382
+?551
* Percentage points **Cash and cash equivalents less debt ***Average of last 4 quarters
Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Phone: +49 9401 70-1169
E-mail: olaf.scholz@krones.com
22.02.2018 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.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language:
English
Company:
Krones AG
Böhmerwaldstraße 5
93073 Neutraubling
Germany
Phone:
+49 (0)9401 701169
Fax:
+49 (0)9401 709 1 1169
E-mail:
investor-relations@krones.com
Internet:
www.krones.com
ISIN:
DE0006335003
WKN:
633500
Indices:
MDAX
Listed:
Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange
End of News
DGAP News Service
656569 22.02.2018