After record order intake in the first half of 2022, the strong demand for Krones products and services continued unabated in the third quarter. Order intake between July and September 2022, at €1,493.3 million, exceeded the already good prior-year figure of €1,148.3 million by 30.0%. In total over the first three quarters of 2022, the contract value of orders increased by 44.1%, from €3,192.6 million a year earlier to €4,599.7 million. At €3,449.0 million as of the end of September 2022, the order backlog at Krones was up 95.9% on the previous year (€1,760.9 million). Compared to the beginning of 2022, the increase is €1.56 billion, or 82.2%.
Krones held a course of stable revenue growth in the third quarter. Revenue from July to September was up 14.7% to €1,058.9 million. In the first nine months of 2022, revenue went up by 15.2% year on year, from €2,643.0 million to €3,043.7 million. Thanks to its great flexibility, Krones managed well with the resource shortages and international supply chain problems during the reporting period. This enabled the company to deliver strong revenue growth.
Krones improves profitability as forecast
The company was able to maintain satisfactory but, due to material shortages, not full capacity utilisation in the first three quarters of 2022. Due to the extensive efficiency improvement measures and the initial effects of the price adjustments, profitability nevertheless improved as planned in the reporting period. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed by 27.0% in the first three quarters from €212.6 million to €270.1 million. The EBITDA margin rose to 8.9% (previous year: 8.0%). Earnings before taxes (EBT) went up by 49.2% to €176.6 million (previous year: €118.4 million). The EBT margin consequently rose to 5.8% (previous year: 4.5%). On the bottom line, Krones generated consolidated net income of €128.3 million in the first three quarters of 2022, an increase of 48.2% (previous year: €86.6 million). This corresponds to earnings per share of €4.06 (previous year: €2.74).
Krones’ EBITDA of €95.0 million in the third quarter was 26.8% higher than in the previous year (€74.9 million). The EBITDA margin rose from 8.1% to 9.0%. EBT improved by 48.5% to €63.4 million (previous year: €42.7 million). At €45.1 million, consolidated net income in the third quarter was 51.9% higher than in the previous year (€29.7 million). This made for earnings per share of €1.43 (previous year: €0.94).
Krones’ net cash at €440.9 billion as of the end of September 2022
Krones significantly improved working capital and free cash flow in the first three quarters of 2022. The ratio of average working capital for the past four quarters to revenue came to 20.5% (previous year: 26.2%). The decrease reflects the strong revenue growth and rising advance payments from customers due to the large order intake. Free cash flow in the first nine months of 2022 amounted to €132.3 million, an increase of €24.8 million on the already high prior-year figure (€107.5 million). Krones’ net cash – cash and cash equivalents less bank debt – amounted to €440.9 million at the end of September 2022 (previous year: €283.4 million). In addition, Krones had available just under €1 billion in free lines of credit as of 30 September 2022. Krones improved ROCE (return on capital employed) to 12.4% in the first three quarters of 2022 (previous year: 10.1%).
