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Krones AG FY18 Profit Down On Weak Margin, Revenues Up; Sees Higher FY19 Revenue

Beverage filling and packaging company Krones AG (KRNTY.PK,KRNNF.PK) on Thursday reported that its fiscal 2018 consolidated net income declined 19.5 percent to 150.6 million euros from 187.1 million euros last year.

Earnings per share were 4.78 euros, down 20 percent from 5.97 euros a year earlier.

Krones' earnings were significantly impacted by higher material and labour costs in 2018.

The EBT margin was 5.3%, including approximately 42 million euros in expenses for reorganisation and in connection with acquisitions. Without these expenses in 2018, the EBT margin would have been 6.4%. The prior year's margin was 7 percent.

Revenue increased 4.4% to 3.85 billion euros from 3.69 billion euros last year. Adjusted for currency and acquisition effects, revenue in 2018 rose by around 5%.

Order intake went up 4.5% to 3.96 billion euros. At the end of 2018 the company had orders on hand totaling 1.26 billion euros. This was a further growth of 1.7% on the very high prior-year figure.

Looking ahead, for fiscal 2019, the company expects revenue to grow by 3% and the EBT margin to increase to approximately 6%.

Mainly due to the focus to increase the price level, Krones sees in the current economic and geopolitical climate, the achievement of its targets for 2019 subject to greater uncertainties than previously.

For its third performance target, working capital to revenue, Krones expects a figure of 26%.

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