Kardex (KARN) H1 2024 earnings summary

Executive summary

• Bookings rose 12.9% year-over-year to €382.8M, with net revenues up 10.5% to €369.7M, driven by strong demand in both New Business and Life Cycle Services.

• Gross profit margin improved to 34.4% from 33.2%, as normalized material and transportation costs offset higher personnel expenses.

• EBIT increased 11.8% to €48.2M, with net profit up 18.2% to €38.3M, reflecting robust operational performance.

• Free cash flow surged 359% to €56.0M, mainly due to improved working capital.

• Business activities normalized with increased investment appetite and steady demand for intralogistics solutions across sectors and regions.

Financial highlights

• Bookings rose 12.9% to €382.8M; net revenues up 10.5% to €369.7M.

• EBIT increased 11.8% to €48.2M; EBIT margin stable at 13.0%.

• Net income grew 18.2% to €38.3M; free cash flow surged to €56.0M.

• Equity ratio at 54.7%; cash and cash equivalents increased to €122.6M.

• Earnings per share rose to €4.95; ROIC improved to 39.0%.

Outlook and guidance

• Customers expected to continue investing in automation to address labor shortages, supporting robust demand.

• Market conditions improved with stabilized inflation and interest rates, though some regions remain mixed.

• Strong sales funnels and backlogs across all business units secure a positive outlook for H2 2024.

• Kardex aims to achieve results in line with its communicated financial targets of a 10–14% EBIT margin, supported by continued investment in infrastructure, R&D, and ERP.