27.04.2023 06:56:05
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EQS-News: KION Group with strong start to 2023
EQS-News: KION GROUP AG
/ Key word(s): Quarter Results
KION Group with strong start to 2023
Frankfurt am Main, April 27, 2023 As already published on April 19, 2023, KION Group started strongly into 2023, despite a continued challenging market environment. The positive development of the Groups business was mainly due to the Industrial Trucks & Services (ITS) segment performing much stronger than expected in the first quarter of 2023. The ITS segment, which focuses on forklift trucks, warehouse technology, and associated services, grew revenue by 16.7 percent year-on-year to 2.0 billion (Q1 2022: 1.7 billion). ITS made good progress executing the sizeable order book that was built last year, with positive effects on revenue growth. Dynamic price increases implemented in 2022 materialized already in the first quarter of 2023 and boosted revenue growth earlier than expected. Adjusted EBIT in the ITS segment rose substantially to 176.6 million (Q1 2022: 114.2 million), corresponding to a strong adjusted EBIT margin uplift to 8.8 percent (Q1 2022: 6.6 percent). The main contributing factors were the improving supply chain situation and operational and commercial agility, which allowed the business to bring orders forward. Putting measures in place to boost profitability We are off to a strong start, said Rob Smith, Chief Executive Officer of KION GROUP AG. Our growth in the ITS segment underlines the effectiveness of our measures. The Group is on track to achieve sustainable profitability improvements and further strengthen its resilience. Adjusted EBIT for the KION Group came in at 156.0 million (Q1 2022: 170.3 million), exceeding company expectations. The corresponding adjusted EBIT margin for the first quarter was 5.6 percent (Q1 2022: 6.2 percent). Net income for the period decreased to 73.5 million year-on-year (Q1 2022: 80.2 million). Free cash flow was clearly positive at 104.9 million (Q1 2022: minus 432.6 million). A key factor in addition to the level of operating profit was a nearly unchanged level of working capital compared to the end of 2022. Group revenues increased by 1.7 percent to 2.8 billion (Q1 2022: 2.7 billion), driven by improving supply chain conditions and dynamic price increases in the ITS segment, which boosted revenues earlier than expected. The service business grew 10.5 percent, mainly due to higher revenue volumes in the after-sales and rental business. Revenue and EBIT in the Supply Chain Solutions (SCS) segment were in line with the Groups expectations. Against the backdrop of lower order volume in 2022, especially in the project business, segment revenues fell by 23.3 percent to 783 million (Q1 2022: 1.0 billion). Order volume decreased mainly due to customers holding back capital expenditure decisions. By contrast, the segments revenue from the service business increased by 20.3 percent. The service share is now 31.6 percent (previous year: 20.1 percent). The SCS segment returned to profitability following a loss in 2022, with an adjusted EBIT in the first quarter of 2023 of 7.1 million (Q1 2022: 74.0 million), or a margin of 0.9 percent (Q1 2022: 7.3 percent). The expected softer results reflect the execution of low-margin projects from previous years as well as a lack of bought-in parts that caused project delays. Outlook The KION Group has made a strong start to 2023. The business performance of the Industrial Trucks & Services segment was much better than expected. The improving supply chain situation meant that production and delivery could be ramped up, which allowed the sizeable order book built up in 2022 to be worked through at a faster pace. The resulting effects of newer orders being brought forward are likely to continue to have a positive impact on revenue and adjusted EBIT in the Industrial Trucks & Services segment over the remainder of the year. The Supply Chain Solutions segment is expected to see a noticeable increase in revenue and an improvement in adjusted EBIT, especially in the second half of 2023, thanks to a growing proportion of higher-margin customer projects in the order book. KION Group key performance indicators for the first quarter, which ended March 31, 2023
On April 19, 2023, the Executive Board of KION GROUP AG revised the target figures for 2023 that it had published in the outlook section of the 2022 annual report for the Group and the Industrial Trucks & Services segment. The target figures for the Supply Chain Solutions segment remain unchanged.
The Company The KION Group is one of the worlds leading providers of industrial trucks and supply chain solutions. Its full spectrum of services includes industrial trucks, such as forklift trucks and warehouse trucks, as well as integrated automation technologies and software solutions for the optimization of supply chainsincluding all related services. The KION Groups solutions ensure the smooth flow of materials and information in customers warehouses, production plants, and distribution centers in over 100 countries. The MDAX-listed group is the largest manufacturer of industrial trucks in the EMEA region based on the number of units sold in 2021. Based on revenue for the year 2021, the KION Group is the leading overseas manufacturer in China, and including domestic manufacturers, the third-largest supplier there. The KION Group is also one of the worlds leading warehouse automation providers, based on 2021 revenue. At the end of 2022, more than 1.7 million industrial trucks from the KION Group were in use by customers from all manner of sectors and of varying sizes on six continents. The Group currently employs over 41,000 people and generated revenue of approx. 11.1 billion in the 2022 financial year. You can access up-to-date image material for the KION Group via our image database https://mediacenter.kiongroup.com/categories as well as on our respective brands websites. (fgr) Disclaimer Further information for media representatives Christopher Spies Further Information for Investors Raj Junginger Additional features: Picture: https://eqs-cockpit.com/c/fncls.ssp?u=b6f96b27098364ae248ccaf5fdba1ca3 Subtitle: File: KION Group_Press Release Q1 2023
27.04.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | KION GROUP AG |
Thea-Rasche-Straße 8 | |
60549 Frankfurt/Main | |
Germany | |
Phone: | +49 69 20110-0 |
E-mail: | info@kiongroup.com |
Internet: | www.kiongroup.com |
ISIN: | DE000KGX8881 |
WKN: | KGX888 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1618423 |
End of News | EQS News Service |
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1618423 27.04.2023 CET/CEST
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