Krones, a leading provider of advanced technology and solutions for the beverage industry, achieved impressive results in the first half of 2023, reflecting strong demand for its products and services. Despite challenges in procuring electronic components, the company’s order intake remained at a high level, reaching EUR 1,272.8 million in the second quarter. From January to June 2023, order intake totaled EUR 2,785.9 million, only 10.3% lower than the record figure from the previous year.
Revenue and Profitability Growth
Krones' revenue showed remarkable growth, increasing by 16.9% to EUR 2,320.9 million in the first half of 2023. The company significantly improved its profitability, with EBITDA rising by 26.4% to EUR 221.4 million. The EBITDA margin also improved to 9.5% compared to the previous year's 8.8%.
Already last year the world market leader for filling systems was able to overcome the crisis triggered by the pandemic. (inside.beer, 2.8.2022) Therefore, the recent increase in the company's numbers is even more remarkable.
Raised Guidance for 2023
Due to the favorable performance in the first half of the year, Krones has raised its guidance for revenue growth in 2023. The Executive Board now expects revenue growth between 11% to 13%, up from the previous projection of 8% to 11%. The company remains focused on enhancing profitability, aiming for an EBITDA margin of 9% to 10% and anticipating an increase in return on capital employed (ROCE) to 15% to 17%.
Continued Strong Demand
Krones continued to experience robust customer demand in the second quarter, with orders reaching a high level of EUR 1,272.8 million. The company anticipates this strong demand to persist in the second half of 2023. Despite challenges in procuring electronic components, Krones managed to increase revenue by 12.5% in the second quarter and by 16.9% in the first half of the year.
Improvement in Profitability and Cash Flow
Despite facing supply chain challenges, Krones improved its EBITDA margin to 9.5% in the first half of 2023. Additionally, earnings before taxes (EBT) increased by 42.3% to EUR 161.1 million. The company generated a consolidated net income of EUR 121.4 million, a 45.9% increase year on year.
Focus on Future Growth
Krones remains committed to enhancing its performance and addressing challenges in the market. While geopolitical risks, inflation, and material shortages pose uncertainties, the company expects the procurement situation, especially for electronic components, to improve in the second half of 2023.
Conclusion
Krones achieved a successful first half-year in 2023, driven by strong demand and a commitment to efficiency and flexibility. Despite supply chain challenges, the company managed to boost profitability and raise its revenue growth guidance for the year. With a focus on continuous improvement and strategic planning, Krones is well-positioned to capitalize on market opportunities and maintain its stable growth in the beverage industry.
