KRONES AG
DGAP-News: Krones AG / Key word(s): Half Year Results
Krones AG: Krones generates high order intake in first half of 2021 and improves profitability
2021-08-03 / 07:30
The issuer is solely responsible for the content of this announcement.
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3 August 2021
Krones generates high order intake in first half of 2021 and improves profitability
Krones, the leading manufacturer of filling and packaging technology, today published its report for the first half of
2021. Following a successful start to the 2021 financial year, business continued to develop dynamically between April
and June. Overall, Krones' markets have so far recovered faster than expected from the pandemic-related downturn.
Strong demand for Krones products and services
Order intake increased by 58.3% relative to the second quarter of 2020, to EUR975.5 million in the second quarter of
2021. In the first six months of 2021, the contract value of orders went up by 40.3% year on year to EUR2,044.3 million.
The order intake in the first half of 2021 was higher than the prior year in all of Krones' sales regions. As of 30
June 2021, the company had an order backlog totalling EUR1,535.5 million. This marks a significant increase in the order
backlog compared both with the beginning of 2021 (up 26.8%) and with a year earlier (up 35.5%).
It should be noted with regard to the revenue performance that revenue in the first quarter of 2020 was hardly affected
by Covid-19. Revenue in the first half of 2021 consequently showed only a slight year-on-year increase of 1.3% to
EUR1,720.1 million. In the second quarter of 2021, on the other hand, revenue showed strong year-on-year growth to some
EUR845.5 million, marking a rise of around 11.7% on the prior-year quarter.
Krones significantly improves profitability and free cash flow
Despite rising costs, notably of materials and freight, Krones' profitability improved significantly in the period
January to June 2021. This was due most of all to structural measures that the company has launched and already
implemented. Earnings before interest, taxes, depreciation and amortisation went up 16.2% year on year in the first
half of 2021, from EUR118.5 million to EUR137.7 million. The EBITDA margin increased to 8.0% (previous year: 7.0%). EBITDA
includes a Covid-19 bonus for employees totalling around EUR5 million paid out by Krones in the second quarter.
Nevertheless, EBITDA in the second quarter of 2021, at EUR61.2 million, was more than twice as high as in the previous
year (EUR 29.0 million).
Krones' earnings before taxes (EBT) increased significantly year on year in the first half of 2021, from EUR31.8 million
to EUR75.7 million. It should be noted in this connection that EBT in the previous year was affected by EUR13.6 million in
goodwill impairments. In total, Krones generated consolidated net income of EUR56.9 million from January to June 2021
(previous year: EUR21.5 million). Earnings per share consequently went up from EUR0.68 in the previous year to EUR1.80.
Krones significantly improved free cash flow in the first six months of 2021 by EUR100.2 million to EUR35.4 million
(previous year: EUR-64.8 million). The company thus consolidated its strong finances. Net cash and cash equivalents,
meaning cash and cash equivalents less bank debt, increased to EUR203.7 million at the end of June 2021 (previous year:
EUR-77.9 million). In addition, Krones had around EUR1.05 billion in unused lines of credit as of 30 June 2021. Average
working capital over the past four quarters increased slightly as a percentage of revenue to 28.1% in the first six
months of 2021 (previous year: 27.6%).
Krones remains optimistic for 2021 and has raised its guidance
For the second half of 2021, the company expects demand to stay strong and production capacity utilisation to remain
stable. Based on the good figures for the first half year and the positive outlook for the third and fourth quarters of
2021, Krones already raised its full-year guidance for 2021 on publication of the preliminary half-year results on 23
July. For the Krones Group, the Executive Board expects full-year revenue growth of 7% to 9% in 2021 (previously 2.5%
to 3.5%). Krones anticipates an EBITDA margin of 7% to 8% (previously 6.5% to 7.5%). For the third performance target,
working capital to revenue, the guidance remains unchanged at 26% to 27%.
The guidance for 2021 is subject to the assumption that there will be no severe impacts from the Covid-19 pandemic,
problems in supply chains or other general economic impacts.
Krones has published the complete Interim Report for the first half of 2021 online at https://www.krones.com/media/
downloads/Q2_2021_e.pdf
Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Tel.: +49 9401 70-1169
E-Mail: olaf.scholz@krones.com
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2021-08-03 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
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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: investor-relations@krones.com
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: 1223483
End of News DGAP News Service
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August 03, 2021 01:30 ET (05:30 GMT)
