29.04.2020 Krones AG  DE0006335003

DGAP-News: Krones AG: Krones improves profitability in first quarter of 2020 despite slightly lower revenue


 

DGAP-News: Krones AG / Key word(s): Quarter Results
Krones AG: Krones improves profitability in first quarter of 2020 despite slightly lower revenue

29.04.2020 / 07:45
The issuer is solely responsible for the content of this announcement.


Corporate News Release
29 April 2020

Krones improves profitability in first quarter of 2020 despite slightly lower revenue

- Revenue decreased due to the initial effects of the COVID-19 situation by 4.2% year-on-year to €942.0 million between January and March 2020.

- Overall economic uncertainties have significantly impacted customers' investment confidence regarding new projects, especially since March 2020. First-quarter order intake fell by 19.3% year-on-year.

- Structural measures are beginning to take effect. Earnings before interest, taxes, depreciation and amortisation (EBITDA) went up, despite the lower revenue, to €89.5 million. The EBITDA margin improved to 9.5% (previous year: 8.7%).

- Due to the global uncertainties in connection with the coronavirus, it is not currently possible to provide reliable indications and guidance for revenue and earnings in the 2020 financial year.

Krones' business was affected in the first quarter of 2020 by the initial impacts of the COVID-19 situation. As expected, the impact of corona on revenue remained limited. Revenue from January to March 2020 decreased by 4.2% year-on-year, from €983.5 million to €942.0 million. As well as good revenue in the service business, Krones benefited from a large order backlog for new machinery.

Krones' customers have cut capital expenditure sharply since March 2020. The low investment confidence is due to the many general economic uncertainties resulting from the coronavirus. In the first quarter of 2020, Krones' order intake fell by 19.3% year-on-year, from €1,041.6 million to €841.1 million. Krones does not expect the trend in orders to turn around in the short term. In the medium and long term, however, the market for bottling and packaging equipment is expected to show stable growth. Krones had an order backlog of €1,284.8 million as of 31 March 2020. Orders on hand were thus 2.6% down on the previous year (€1,319.2 billion). The order backlog remains relatively satisfactory, however. At the request of customers, some orders will not go into production until later.

Krones strengthens profitability

Krones already began implementing extensive structural measures to improve profitability in the second half of 2019. These include savings in material and labour costs. The measures are beginning to take effect and have contributed to earnings being higher in the first quarter of 2020 despite lower revenue. With regard to implementing the structural measures, the company is making good progress. The Executive Board is confident that the measures will have a positive impact on earnings in 2020 and 2021.

Additionally, the higher profitability also reflects the larger proportion of consolidated revenue accounted for in the first three months by the service business. In total, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 4.1% year-on-year, from €86.0 million to €89.5 million in the first quarter of 2020. The EBITDA margin improved to 9.5% (previous year: 8.7%).

Earnings before taxes (EBT) went up by 2.9% to €53.0 million. This corresponds to an EBT margin of 5.6% (previous year: 5.2%). Consolidated net income grew by 7.7% year-on-year to €39.1 million in the first quarter of 2020. This made for earnings per share of €1.24 (previous year: €1.15).

Krones improves free cash flow and is financially well positioned

Average working capital over the past four quarters as a percentage of revenue increased slightly, from 26.4% in the previous year to 27.1% in the first three months of 2020. Krones improved free cash flow year-on-year by €120.6 million to -€16.0 million in the first quarter. At the end of March 2020, Krones had access to agreed liquidity facilities totalling around €1 billion, meaning that it is very well positioned financially - even in times of crisis.

Extreme levels of uncertainty; reliable guidance for 2020 not currently possible

Macroeconomic forecasts for 2020 have deteriorated significantly worldwide since March. The spread of coronavirus and the resulting lockdowns are having massive negative impacts on the global economy. It is not yet possible to predict the duration of the crisis and of its consequences. These uncertainties are also affecting order placement by Krones customers.

Krones expects overall that the global market for bottling and packaging equipment will shrink in the short term. Nevertheless, the medium and long-term outlooks remain positive. Consumer demand for packaged beverages and liquid foods will continue to grow worldwide in the medium to long term.

Due to the global uncertainties surrounding the coronavirus, it is not currently possible to provide reliable indications and guidance for Krones' revenue and earnings in the 2020 financial year.

Krones has published the complete quarterly statement online at https://www.krones.com/en/company/investors.php
Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Tel.: +49 9401 70-1169
E-mail: [email protected]



29.04.2020 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: 1032299

 
End of News DGAP News Service

1032299  29.04.2020 

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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 83,150 Halten 2.626,96
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
17,32 19,56 0,89 27,09
KBV KCV KUV EV/EBITDA
2,19 8,16 0,79 20,44
Dividende '19 in € Dividende '20e in € Div.-Rendite '20e
in %
Hauptversammlung
0,75 0,06 0,07 17.05.2021
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
07.05.2021 03.08.2021 05.11.2021 25.03.2021
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
6,53% 19,69% 25,89% 61,46%
    
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Maschinen-/Anlagenbau , 633500 , KRN , XETR:KRN