Krones (KRN) Q2 2024 earnings summary

Executive summary

• Revenue and profitability increased significantly in H1 2024, with revenue up 10.1% year-over-year to €2,556.1 million, driven by organic growth and the Netstal acquisition.

• Order intake remained strong at €2.79 billion, with a backlog of €4.4 billion, ensuring capacity utilization beyond mid-2025.

• Free cash flow (excluding M&A) improved to €127 million, reversing a negative prior year, and the Netstal acquisition marked a strategic milestone.

• All 2024 targets are confirmed, with a profitable growth strategy extending to 2028.

• EBITDA margin improved to 10.0% (H1 2023: 9.5%), and net income rose 11.2% to €135.0 million.

Financial highlights

• H1 2024 revenue: €2,556.1 million (+10.1% year-over-year); Q2 revenue: €1,309.0 million (+16.7%).

• EBITDA: €256.2 million (+15.7%); EBITDA margin: 10.0%.

• EBT: €185.7 million (+15.3%); EBT margin: 7.3%.

• Free cash flow (excl. M&A): €127 million; cash conversion rate at 94%.

• Equity ratio: 38.5%; ROCE: 18.8% (upper end of 2024 target range).

Outlook and guidance

• 2024 guidance confirmed: revenue growth 9%-13%, EBITDA margin 9.8%-10.3%, ROCE 17%-19%.

• Segment targets: Filling and Packaging Technology revenue +9%-13%, Process Technology +15%-20%, Intralogistics +5%-10%.

• Mid-term (2028) targets: revenue ~€7 billion, EBITDA margin 11%-13%, ROCE >20%.

• Order intake target for 2024 is €5.6 billion, with Q3 expected slower due to seasonality but a strong Q4 anticipated.