DGAP-News: Krones AG / Key word(s): Quarter Results
Krones AG: Krones reports good first quarter 2021
2021-05-07 / 08:00
The issuer is solely responsible for the content of this announcement.
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Corporate News Release
7 May 2021
Krones reports good first quarter 2021
- Upward trend in order intake continues. Order value increased in first three months of 2021 by 27.1% to EUR1,068.8
million.
- First quarter revenue of EUR874.6 million down 7.2% on prior-year figure, which was only partially affected by corona.
- Despite lower revenue, Krones was able to limit the decline in earnings before interest, taxes, depreciation and
amortisation (EBITDA) from EUR89.5 million to EUR76.5 million. The EBITDA margin was 8.7% in the reporting period, down on
the high prior-year figure of 9.5%.
- Based on the positive first-quarter trend, Krones is confident of meeting the forecast for 2021. For the full year,
the company expects revenue growth of 2.5% to 3.5% and an EBITDA margin of 6.5% to 7.5%.
Krones, the world's leading manufacturer of filling and packaging technology, saw business further stabilise in the
first quarter of 2021. Revenue showed a year-on-year decrease of 7.2%, from EUR942.0 million to EUR874.6 million. It should
be noted, however, that the Corona crisis had only a minor impact on revenue in the first quarter of 2020, so that the
previous year's revenue figure was still relatively high. The revenue shortfall in the reporting period also reflects
the weaker order intake in the second and third quarters of 2020.
Order intake has since recovered significantly. Following a strong fourth quarter in 2020, order intake continued to
grow dynamically from January to March 2021. The contract value of orders increased by 27.1% year on year to EUR1,068.8
million. At EUR1,405.5 million as of the end of March 2021, Krones' order backlog was up 9.4% on the previous year.
Krones generates 8.7% EBITDA margin in first quarter
Krones has significantly enhanced its flexibility with extensive structural measures. This positively impacted
profitability in the first quarter of 2021. Despite the lower revenue, Krones was able to limit the decline in earnings
before interest, taxes, depreciation and amortisation (EBITDA) from EUR89.5 million to EUR76.5 million. The EBITDA margin
was 8.7% in the reporting period, down on the high prior-year figure of 9.5%.
Earnings before taxes (EBT) amounted to EUR44.6 million (previous year: EUR53.0 million). This corresponds to an EBT margin
of 5.1% (previous year: 5.6%). In total, Krones generated consolidated net income of EUR32.8 million from January to
March 2021 (previous year: EUR39.1 million). This results in earnings per share of EUR1.04 (previous year: EUR1.24).
Krones generates free cash flow of EUR30.3 million in first quarter of 2021 and is financially well positioned
Krones significantly improved free cash flow in the reporting period by EUR46.3 million to EUR30.3 million (previous year:
EUR-16.0 million). The company thus consolidated its strong finances. Net cash and cash equivalents, meaning cash and
cash equivalents less bank debt, increased to EUR208.2 million at the end of March 2021 (previous year: EUR10.8 million).
In addition, Krones had around EUR970 million in unused lines of credit as of 31 March 2021.
Mainly due to the lower quarterly revenue, average working capital over the past four quarters increased as a
percentage of revenue from 27.1% in the previous year to 28.7% in the first three months of 2021.
Following good start to the year, KRONES optimistic for full year 2021
Following the positive first quarter, the company remains confident for the full year 2021. On the basis of the current
general economic outlook, Krones expects that the markets relevant to the company will stabilise and show a trend
towards recovery in the course of the year. Based on this, Krones expects revenue growth of 2.5% to 3.5% in 2021.
With revenue increasing and thanks to the adopted structural measures, Krones will improve profitability this year
compared with 2020. For 2021, the company forecasts an EBITDA margin of 6.5% to 7.5%. This would correspond to an EBT
margin of 3.0% to 4.0%. For its third performance target, working capital to revenue, Krones expects a figure this year
of 26%-27%.
The guidance for 2021 is subject to the assumption that there will be no severe impacts from the Covid-19 pandemic such
as harmful virus mutations or vaccination difficulties. This would hit the economy and hence also Krones harder than
currently expected and could lead to negative revenue and earnings effects.
Krones has published the complete quarterly statement online at:
https://www.krones.com/media/downloads/Q1_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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2021-05-07 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: 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: 1193720
End of News DGAP News Service
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1193720 2021-05-07
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(END) Dow Jones Newswires
May 07, 2021 02:01 ET (06:01 GMT)