Annual report
The Neutraubling-based manufacturer of filling and packaging technology released its annual report on 15 March 2018.
Revenue increased 8.8 per cent year-on-year to EUR 3,691.4 million. Adjusted for acquisitions, revenue was up 7.2 per cent. The highest percentage revenue growth came in the South America/Mexico, Asia-Pacific, and Western Europe sales regions.
Order intake improved by 10.0 per cent year-on-year to EUR 3,786.8 million in 2017. Adjusted for acquisitions, the increase was 7.1 per cent. At the end of 2017, the company had orders on hand totalling EUR 1,240.1 million, which is up 8.3 per cent year-on-year.
Earnings before taxes (EBT) improved 8.9 per cent over 2016 to EUR 258.8 million. The EBT margin remained stable at 7.0 per cent, as in the year-earlier period. Thus, the company met its EBT margin target for 2017. Net income increased 10.7 per cent year-on-year in 2017 to EUR 187.1 million. Earnings per share rose from EUR 5.40 in the previous year to EUR 5.97.
As a matter of policy, Krones pays out 25 per cent to 30 per cent of consolidated net income to shareholders. The Executive Board and the Supervisory Board will propose to the annual general meeting on 13 June 2018 that a dividend of EUR 1.70 per share be paid out for the 2017 financial year (previous year: EUR 1.55). That is an increase of 9.7 per cent. The planned payout for 2017 corresponds to 28.7 per cent of consolidated net income.
The ratio of average working capital for the past four quarters to revenue was up from 26.7 per cent in the previous year to 27.3 per cent in 2017. The target for 2017 was 27 per cent. The company is not satisfied with the development of free cash flow, which decreased to -EUR 150.7 million in 2017 (2016: + EUR 49 million). Net cash and cash equivalents (cash and cash equivalents less liabilities to banks) decreased to EUR 157.4 million (previous year: EUR 369 million). The company's equity ratio improved to 43.8 per cent (previous year: 39.9 %). Overall, the company continues to possess a very robust financial and capital structure.
Based on the current macroeconomic prospects and developments in the markets relevant to Krones, the company expects consolidated revenue to grow by six per cent in 2018. Profitability is expected to remain stable and the reported EBT margin is expected to be 7.0 per cent in 2018. The company’s third financial performance target, working capital to revenue, is expected to improve to 26 per cent.
