KRONES AG - Earnings Release 2015

News Details

Corporate | 17 March 2016 08:00

Krones AG: Krones continued its profitable growth in 2015

DGAP-News: Krones AG / Key word(s): Preliminary Results

2016-03-17 / 08:00

The issuer is solely responsible for the content of this announcement.

Corporate news release

17 March 2016

Krones continued its profitable growth in 2015

– Revenue rose 7.5% in 2015 to EUR3.17 billion

– EBT margin improved from 6.5% in the previous year to 7.0%

– Dividend for 2015 to increase to EUR1.45 per share (previous year: EUR1.25)

– Krones is positive about 2016 and expects earnings to grow

Krones, the world’s leading manufacturer of filling and packaging technology, met its forecasts for all key financial performance indicators in the 2015 financial year. Revenue rose 7.5% from EUR2.95 billion in the previous year to EUR3.17 billion. That exceeds Krones’ growth target of 4% for the year 2015. Demand in Krones’ markets developed well overall in 2015. The company was able to expand its business considerably thanks to its broad range of products and services and strong global presence.

Capital spending among the company’s customers was at a good level all year. New orders increased 4.9% year-on-year in 2015, from EUR3.04 billion to EUR3.19 billion. At 31 December 2015, Krones had orders on hand totalling EUR1.09 billion (previous year: EUR1.08 billion).

Krones improved profitability as forecast

Krones continued its earnings growth in 2015. Earnings before taxes (EBT) rose 16.4% from EUR191.8 million in the previous year to EUR223.3 million. The EBT margin, the ratio of earnings before taxes to revenue, advanced from 6.5% to 7.0%. Thus, Krones has met its EBT margin target for 2015. Krones’ improved profitability can be attributed largely to increased efficiency resulting from measures taken under the Value strategy programme. Market prices did not provide any positive effects.

Krones’ net income was up 15.2%, from EUR135.7 million in the previous year to EUR156.3 million in 2015. Earnings per share rose to EUR4.98 (previous year: EUR4.30).

Very robust financial and capital structure

Krones generated free cash flow of EUR64.6 million in 2015 (previous year: EUR152.1 million). The return on capital employed (ROCE), that is the ratio of EBIT to average net tied-up capital, increased to 17.7% in the reporting period (previous year: 16.4%). With that, the company exceeded its ROCE target of 17% for 2015.

At the end of 2015, Krones had cash and cash equivalents totalling EUR364.6 million (previous year: EUR336.4 million). The company had no bank debt at the end of the 2015 reporting period. The equity ratio was 41.0% at the end of 2015, which is up slightly from the year-earlier figure of 40.7%. Overall, Krones continues to possess an exceptionally robust financial and capital structure.

All figures stated here are provisional and may change following completion of the audit.

Krones to raise dividend to EUR1.45 per share

The Executive Board and the Supervisory Board will propose to the annual shareholders’ meeting a dividend of EUR1.45 per share (previous year: EUR1.25). The planned payout corresponds to 29% of consolidated net income and lies near the upper limit of the target corridor (25% to 30%).

Outlook

Based on the current macroeconomic prospects and developments in the markets relevant to Krones, the company expects consolidated revenue to grow by 3% in 2016.

The company’s earnings are set to improve yet again this year. Krones expects to achieve an EBT margin of 7.0% in 2016. The company is aiming to increase its third strategy target, ROCE, to 18% this year.

Krones will publish its annual report for 2015 and its report on the first quarter of 2016 on 28 April 2016.


Key Figures for 2015		2015	2014	Change
Revenue	EUR million	3,173.5	2,953.4	+ 7.5%
New orders	EUR million	3,189.0	3,040.0	+ 4.9%
Orders on hand at 31 December	EUR million	1,094.6	1,079.1	+ 1.4%

EBITDA	EUR million	305.3	276.3	+ 10.5%
EBIT	EUR million	216.9	185.1	+ 17.2%
EBT	EUR million	223.3	191.8	+ 16.4%
EBT margin	%	7.0	6.5	–
Consolidated net income	EUR million	156.3	135.7	+ 15.2%
Earnings per share	EUR	4.98	4.30	+ 15.8%
Dividend per share	EUR	1.45*	1.25	+ 16.0%

Capital expenditure for PP&E and intangible assets	EUR million	102.6	94.6	+ 8.0
Free cash flow	EUR million	64.6	152.1	- 87.5
Net cash and cash equivalents** at 31 December	EUR million	364.6	336.4	+ 28.2

Employees at 31 December
Worldwide		13,346	12,624	+ 722
Germany		9,767	9,344	+ 423
Outside Germany		3,579	3,280	+ 299

* As per proposal for the appropriation of retained earnings ** Cash and cash equivalents less debt

Contact:

Olaf Scholz

Head of Investor Relations, Krones AG

Phone: +49 9401 70-1169

E-mail: [email protected]

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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:	MDAX
Listed:	Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart; Terminbörse EUREX