Annual report

Krones released its 2016 annual report. The company continued its stable, profitable growth and intends to give shareholders an appropriate share in its success.

Krones’ revenue increased 6.9 per cent year-on-year from EUR 3,173.5 million to EUR 3,391.3 million in 2016. Adjusted for the acquisitions, revenue growth came to 4.2 per cent. With that, Krones has slightly exceeded its growth target of three per cent for the year 2016. For example, revenue in the Middle East and Africa, which together make up an important growth region for Krones, and in North and Central America grew more than overall revenue.

Order intake increased 7.9 per cent year-on-year to EUR 3,441.3 million in 2016. The increase is partly due to acquisitions. Adjusted for acquisitions, order intake increased 5.2 per cent. At 31 December 2016, the company had orders on hand totalling EUR 1.14 billion, which is up 4.6 per cent on the previous year (EUR 1.09 billion).

Krones increased earnings again in 2016 despite the highly competitive markets. Earnings before taxes (EBT) rose 6.4 per cent year-on-year, from EUR 223.3 million in 2015 to EUR 237.6 million. The EBT margin remained unchanged year-on-year at 7.0 per cent. Thus, Krones met its EBT margin target for 2016. Market prices provided no support, as expected. Net income improved 8.2 per cent, from EUR156.3 million in the previous year to EUR 169.1 million in 2016. Earnings per share rose to EUR 5.40 (previous year: EUR 4.98).

Krones wishes to give its shareholders an appropriate share in the company’s success in 2016. 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 20 June 2017 that a dividend of EUR 1.55 per share be paid out for the 2016 financial year. That is a year-on-year increase of EUR 0.10 per share. The planned payout for 2016 corresponds to 29.0 per cent of consolidated net income and lies near the upper end of the target corridor.

Based on the current macroeconomic prospects and developments in the markets relevant to Krones, the company expects consolidated revenue to grow by four per cent in 2017. The company expects earnings to rise further and the EBT margin to remain stable at 7.0 per cent this year.