Kardex adjusts margin target for 2022

Media Information Kardex adjusts margin target for 2022

Zurich, 18 November 2022

Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Kardex had communicated in its half-year report that the Kardex Remstar Division was unlikely to achieve the targeted EBIT-margin corridor of 14-17% in fiscal 2022. Nevertheless, the Group's operating result was expected to develop within the communicated financial targets (10-14% EBIT margin). However, based on the current assessment of the Board of Directors and Management, this targeted result can no longer be achieved. Kardex now expects - despite order intake above the previous year and double-digit revenue growth - an EBIT of around 9% for financial year 2022.

Kardex Remstar continues to see encouraging demand for its intralogistics solutions. However, significant bottlenecks in the procurement market and staff shortages continue to hamper production efficiency and Kardex Remstar's ability to deliver. At the same time, material, personnel and energy costs have risen continuously and significantly. Due to the record high order backlog and the massive delays in deliveries, the effects of the price increase rounds that have been implemented are therefore only being felt with a significant delay. In addition, the new factory in the USA, which is struggling with start-up difficulties, has not yet achieved the hoped-for stability and is therefore placing an additional burden on profitability.

However, the Board of Directors and management remain confident about the future. The order books are full until mid-2023 and demand remains good. The current inefficiencies in the supply chain should be overcome in the course of 2023. With the reduction of the high order backlog and an easening inflation, the implemented price increases will also have again a positive impact on the gross margin.
 

Robomotive to become an independent company again
Kardex has decided to sell one of its corporate ventures again. The founders of the Netherlands-based smart robotics technology start-up intend to buy back the 50% stake Kardex acquired in 2020. Kardex and Robomotive will continue to jointly develop new prototypes and products to solve customer requirements. The parties have agreed not to disclose financial details. The move will result in a low single-digit million write-down requirement for Kardex, which is included in the new guidance for fiscal 2022.
 

Contact for media and investors
Alexandre Müller    
Mobile: +41 (0)79 635 64 13

Edwin van der Geest
Mobile: +41(0)79 330 55 22

investor-relations@kardex.com

Kardex Corporate Profile

Kardex is a global industry partner for intralogistic solutions and a leading supplier of automated storage solutions and material handling systems. The Group consists of two entrepreneurially managed divisions, Kardex Remstar and Kardex Mlog. Kardex Remstar develops, produces and maintains dynamic storage and retrieval systems and Kardex Mlog offers integrated materials handling systems and automated high-bay warehouses. The two divisions are partners for their customers over the entire lifecycle of a product or solution. This begins with an assessment of customer requirements and continues via the planning, realization and implementation of customer-specific systems through to ensuring a high level of availability and low lifecycle costs by means of customer-oriented lifecycle management. Around 2000 employees in over 30 countries work for Kardex.

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