- Demand for Krones’ products and services remains strong. In the third quarter of 2023, order intake improved by 4.3% on the previous quarter to €1,327.7 million.
- Order backlog exceeds the €4 billion mark for the first time and, at €4.09 billion, ensures capacity utilisation in plant and project business through to 2025.
- Krones’ revenue developed well between January and September, despite the tight supply of electrical components, rising by 14.5% to €3,485.6 million.
- The company significantly improved profitability in a challenging environment in the first three quarters of 2023. Earnings before interest, taxes, depreciation and amortisation (EBITDA) went up by 23.0% to €332.3 million. The EBITDA margin rose to 9.5% (previous year: 8.9%).
- Krones confirms its full-year guidance for 2023. The Executive Board expects revenue growth of 11% to 13%. In addition, the company aims to further improve profitability and forecasts an EBITDA margin of 9% to 10% in 2023. For return on capital employed (ROCE), Krones expects an increase to between 15% and 17%.
Order intake picks up in third quarter compared to previous quarter, order backlog exceeds €4 billion mark
Third-quarter order intake improved by 4.3% on the previous quarter to €1,327.7 million (Q3 2022: 1,493.3 million). Krones received €4,113.6 million in new orders in the first nine months of 2023 (previous year: €4,599.7 million). The sustained strong demand for Krones products and services is also reflected in the order backlog. Despite higher output, the contract value of orders exceeded the €4 billion mark for the first time in the third quarter of 2023. At the end of September 2023, the order backlog stood at €4,094.4 million, up 18.7% on the already very high prior-year figure (€3,449.0 million). This comfortable order backlog ensures production capacity utilisation in plant and project business through to 2025.
Revenue raises by 14.5% in the first nine months of 2023
Production conditions remained challenging in the third quarter due to the tight situation regarding the procurement of electrical components. Thanks to the high flexibility and creativity of its workforce, however, Krones was able to continue its stable growth. Revenue from July to September 2023 was up 10.0% year on year, rising to €1,164.7 million. Over the first three quarters of 2023, revenue thus grew by 14.5%, from €3,043.7 million a year earlier to €3,485.6 million.
Krones significantly improves profitability
Despite difficult conditions overall, Krones significantly improved profitability in the third quarter compared to the previous year. As in the first half of the year, this is largely due to the flexibility of the company and the workforce. Rising material and labour costs were also offset by the implemented price increases. EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by 16.7% to €110.9 million between July and September 2023. The EBITDA margin consequently improved to 9.5% (Q3 2022: 9.0%). Krones’ EBT (earnings before taxes) of €74.3 million in the third quarter was 17.2% higher than in the previous year. Consolidated net income climbed 20.4% to €54.3 million. This results in earnings per share of €1.72 (previous year: €1.43).
In the first nine months of 2023, EBITDA increased by 23.0% year on year, from €270.1 million to €332.3 million. The EBITDA margin rose from 8.9% to 9.5% in the period from January to September. As a result of higher financial income, EBT improved even more strongly than EBITDA, increasing by 33.3 % to €235.4 million. The EBT margin rose accordingly from 5.8% to 6.8%. Consolidated net income for the first three quarters of 2023 came to €175.7 million, 36.9% higher than in the previous year (€128.3 million). Earnings per share increased from €4.06 to €5.56.