Kardex (KARN) H2 2024 earnings summary

Executive summary

• Achieved record highs in bookings, net revenues, EBIT, and net profit for 2024, with strong demand for intralogistics solutions and increased customer investment in Standardized Systems, though some hesitation for Automated Products in H2.

• Gross profit margin improved due to normalized material costs, partially offset by higher salaries and IT expenses; investments in innovation and digitalization intensified.

• ROIC remained strong, and the dividend was increased from CHF 5.00 to CHF 6.00 per share.

Financial highlights

• Bookings rose 17.4% year-over-year to EUR 791.2m; net revenues up 12.6% to EUR 791.2m; gross profit increased 17.3% to EUR 276.8m.

• EBIT grew 14.6% to EUR 98.4m, with EBIT margin at 12.4%; net profit up 20.8% to EUR 80.8m.

• Free cash flow nearly doubled to EUR 90.7m, driven by strong results and reduced NWC.

• Equity ratio increased to 57.7% from 56.9% year-over-year; cash and cash equivalents rose 26.7% to EUR 136.0m.

Outlook and guidance

• Demand for intralogistics solutions expected to remain strong, with reshoring, labor shortages, and automation as key drivers.

• Continued investments in sales, marketing, R&D, and IT infrastructure to support growth.

• Standardized Systems may see H1 EBIT margin below target due to project timing and expansion investments; group net revenues growth target increased.

• New financial targets: EUR 1.5bn net revenues by 2029-2031, group EBIT margin 10-14%, ROIC >25%, payout ratio up to 75%.