KRONES AG - Earnings Release 2017

News Details

Corporate | 22 February 2018 08:00

Krones AG: Krones continues growth with stable profitability

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

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: [email protected]

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.

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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, Hanover, Stuttgart, Tradegate Exchange