In This Article:
-
Order Intake Q3: EUR 1.3 billion, in line with expectations.
-
Order Intake 9 Months: EUR 4.1 billion, consistent with forecasts.
-
Revenue 9 Months: Close to EUR 3.9 billion, 11.2% growth.
-
EBITDA Q3: EUR 134.9 million, 10.2% margin.
-
EBITDA 9 Months: EUR 391.1 million, 10.1% margin, 18% increase.
-
EBIT Q3: EUR 89.9 million, 7.1% margin.
-
Personnel Costs: EUR 1.168 billion, 30.0% of revenue.
-
Material Costs: 49.1% of revenue.
-
Employees: 20,025 as of September, increase of over 1,500 from December 2023.
-
Filling and Packaging Technology Revenue: EUR 3.277 billion, 13.8% growth.
-
Processing Technology Revenue: EUR 378 million, 11.7% growth.
-
Intralogistics Revenue: EUR 220 million, decrease of EUR 46 million.
-
Cash Position: EUR 305 million as of September.
-
Equity Ratio: 40.5%.
-
Working Capital: 17.1% of revenue.
-
Free Cash Flow 9 Months: EUR 145 million.
-
Return on Capital Employed: 18.3%.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Krones AG (KRNTY) reported a strong order intake of EUR 1.3 billion in Q3, aligning with expectations and maintaining a book-to-bill ratio above 1.
-
The company achieved a revenue growth of 11.2% for the first nine months, with expectations to reach the upper end of their 9-13% growth guidance.
-
Krones AG (KRNTY) reported a significant increase in EBITDA, with a margin improvement from 9.5% to 10.2% in Q3.
-
The company has a robust order backlog, providing capacity utilization until the end of 2025, ensuring planning security for the future.
-
Krones AG (KRNTY) maintained a strong cash position with EUR 305 million and a liquidity reserve of EUR 1.159 billion, indicating financial stability.
Negative Points
-
The Intralogistics segment experienced a revenue decrease of EUR 46 million, with challenges in executing orders due to customer project delays.
-
There is uncertainty regarding the impact of geopolitical events, such as the US elections and conflicts in the Middle East, on future order intake.
-
The company faces competitive pressure, particularly from Chinese and Italian competitors, affecting pricing and order acquisition.
-
Krones AG (KRNTY) has not yet achieved its target delivery times, currently at 50 weeks, with plans to reduce to 40-45 weeks.
-
The Processing Technology segment showed flat growth in Q3, with challenges in the US market and a need for a stronger sales force.
Q & A Highlights
Q: Can you provide an update on the order intake guidance and whether the 5.6 billion target mentioned in Q2 is still achievable? A: Christoph Klenk, CEO, stated that the order intake pipeline is robust enough to potentially reach the 5.6 billion target. However, achieving this depends on winning orders and customers not postponing them. The current estimate for Q4 is around 1.4 billion, which would lead to a book-to-bill ratio greater than one. External factors like the US elections and geopolitical tensions could impact this outcome.