Growth target for 2018 financial year achieved

Krones continued to grow in 2018. Revenue increased by 4.4% to EUR 3.85 billion. The company thus attained the revised forecast of 4% revenue growth announced in autumn 2018. Adjusted for currency and acquisition effects, revenue in 2018 rose by around 5%.

Despite the high prior-year figure, Krones’ order intake increased by 4.5% in 2018, to EUR 3.96 billion. At the end of 2018 the company had orders on hand totalling EUR 1,261.1 million. This was a further growth of 1.7% on the very high prior-year figure.

The company’s earnings were significantly impacted by higher material and labour costs in 2018. The 5.3% EBT margin includes approximately EUR 42 million in expenses for reorganisation and in connection with acquisitions. In total, earnings before taxes (EBT) in 2018 were down by EUR 54.5 million year-on-year to EUR 204.3 million.

The Neutraubling-based manufacturer of filling and packaging technology was able to significantly reduce working capital between October and December 2018. This had a positive impact on free cash flow, which significantly improved in 2018 by EUR 271.4 million compared with the prior year, to EUR 120.7 million. The ratio of average working capital to revenue over the past four quarters developed better than expected, holding stable at 27.3% in 2018. Net cash, meaning cash and cash equivalents less bank debt, went up to EUR 215.1 million at the 2018 reporting date. Due to the increase in total assets, the company’s equity ratio decreased slightly to 43.2%. Overall, the company continues to possess a very robust financial and capital structure.

All stated figures are preliminary and are subject to change in the course of auditing by the independent auditors.

Based on the actual macroeconomic outlook and the current expected development of the markets relevant to Krones, the company expects revenue growth of 3% in 2019. Overall, they expect an EBT margin of approximately 6% for 2019. For its third performance target, working capital to revenue, the company expects a figure of 26%.