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07.03.2024 06:30:49 - Kardex Holding AG: Financial Results 2023
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Kardex Holding AG / Key word(s): Annual Results
Kardex Holding AG: Financial Results 2023
07-March-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Media Information - Financial Results 2023
Zurich, 07 March 2024
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Financial Results 2023
. Sustained robust demand for intralogistics solutions despite the postponement of some larger projects
. Supply chain normalization led to significant efficiency improvements and enhanced production output
. Substantial increase of net revenues is mainly based on the significant increase in production output
. Kardex achieved profitability within the upper range of financial targets
The past year has been marked by a gradual return to normalcy in Kardex' business operations, following the challenging
turbulence of previous years. Notably, the demand for intralogistics solutions remained at significantly elevated
levels compared to pre-pandemic times, despite economic slowdowns in various industries. Equally significant was the
improvement in Kardex' supply chain, particularly within Kardex Remstar. This led to higher efficiency in the
factories, resulting in substantial increases in net revenues and profitability and leading to results in the upper
range of Kardex' communicated financial targets.
The sustained positive momentum in intralogistics demand, coupled with Kardex' strong market position, is evident in
its bookings, which totaled EUR 673.9 million, close to maintaining the high level of the previous year. While
decision-making processes by customers, particularly for larger projects that mainly impacted Kardex Mlog, experienced
a noticeable slowdown, the appetite for automation remained robust across all industry sectors and regions served by
Kardex. Notably, North America and Europe began to feel the initial positive effects of reshoring and increased
inventory levels. Whereas bookings for New Business decreased by 7.9%, bookings for Life Cycle Services grew by 9.5%.
As of 31 December, the order backlog stood at EUR 475.9 million, which is slightly below last year with EUR 510.5
million, but still at a high level.
Net revenues climbed 24.3% year-on-year to EUR 702.9 million due to gradual supply chain normalization within Kardex
Remstar, and accelerated progress in Kardex Mlog customer projects. New Business contributed 74.2% (71.1%) to net
revenues, while Life Cycle Services accounted for 25.8% (28.9%).
Although costs, particularly for personnel and electronic components, continued to rise, the previous year's price
adjustments and the efficiency gains achieved led to a higher gross profit margin, up from 31.4% last year to 33.6%.
Operating costs remaining proportionally stable resulted in a significantly improved operating result and an EBIT
margin of 12.2% (9.9%), representing the upper range of Kardex' financial targets. EBIT totaled EUR 85.9 million,
marking a 53.9% increase compared to last year. Net profit soared by 73.3% to EUR 66.9 million.
Kardex Remstar regains structural strength
Kardex Remstar achieved strong results, benefiting from sustained demand across nearly all markets. Bookings slightly
increased to EUR 527.6 million, surpassing the high level of the previous year (+3.5%), improved market conditions in
procurement, a substantial increase in production output, and the record-high order backlog from the previous year
translated into strong revenue growth of 21.6% to EUR 530.7 million. Price increases for Kardex' products and services
coupled with enhanced efficiency, led to a higher gross profit of EUR 201.0 million, representing a gross profit margin
of 37.9%. These positive developments enabled the operating result to regain its former strength, with EBIT increasing
by 46.2% to EUR 82.0 million, yielding a 15.5% margin. Order backlog remained comfortable at EUR 313.7 million at
year-end, providing a solid foundation for the new financial year.
Mixed results at Kardex Mlog
Kardex Mlog delivered mixed results in a challenging market environment. On the one hand, a substantial order backlog
from the prior year significantly contributed to revenue growth of 7.4% to EUR 113.4 million. On the other hand,
customer-driven order postponements led to significantly lower bookings of EUR 78.9 million, representing a downswing
of 37.1%. Gross profit increased to EUR 22.6 million, and the operating result at EBIT level reached EUR 6.5 million,
supported by increased volume and stringent cost management. The EBIT margin improved to 5.7%, returning to the
predefined target range. Despite the lower bookings, the year-end order backlog of EUR 96.0 million, remains solid.
This, together with a robust sales pipeline, provides the basis for a sound start into the new year albeit the fact
that Germany, Mlog's main market, remains volatile.
Kardex AutoStore business grows rapidly and maintains profitability
Kardex AS Solutions continues to excel in Europe and North America, with the additional reception of initial orders
from the APAC region in the latter half of the year. Bookings increased by 6.8% to EUR 67.6 million. Net revenues
reached EUR 59.1 million, resulting in a positive mid-single-digit operating result for the first time, despite ongoing
investments in geographic expansion.
Positive free cash flow and ROIC development
With improved supply conditions for raw materials and components, safety stock levels increased continuously to ensure
delivery capability. Consequently, net working capital grew significantly compared to the previous year. Nevertheless,
free cash flow remained positive at EUR 46.2 million (EUR -15.2 million), thanks to the strong operational performance.
Return on invested capital (ROIC) surged significantly to 37.6% (27.5%).
Change in Group Management
As of 01 June, Jens Hardenacke has taken over as CEO of Kardex. The Board of Directors is pleased to have found a new
CEO who, in addition to his industry expertise, brings a great deal of management experience from Kardex' growth
markets. The Chairman of the Board, Felix Thöni, who led the Company on an interim basis from beginning of March to end
of June, has returned to his core responsibilities.
Proposals to the Annual General Meeting
In line with the dividend policy of distributing up to 75% of the net profit and taking into account future higher
investments for ERP-Systems and factory infrastructures, the Board of Directors will propose a dividend of CHF 5.00
(CHF 3.50) to the Annual General Meeting of 25 April 2024. All current members of the Board of Directors, except Ulrich
Looser, are standing for re-election at the next Annual General Meeting. The Board of Directors thank Ulrich Looser for
his 12 years of dedicated service as Vice Chairman and his significant contributions as head of the CNC-Committee and
wishes him all the best for his future.
Outlook
The flattening of inflation and the stabilization of the procurement market provide positive growth drivers, albeit
against the backdrop of cooling global growth expectations. Nevertheless, the Board of Directors and the Group
Management are confident that Kardex' customers will continue investing in intralogistics solutions to enhance their
competitiveness. Additionally, the increasing difficulty in recruiting qualified personnel is driving greater
investments in automated solutions. Kardex is well-positioned to capitalize on these megatrends and anticipates
continued development in line with the financial targets throughout the cycle.
Key figures
in EUR million
===
^1 Definition according Alternative Performance Measures (APM) see note 1 of the consolidated financial statements.
^2 2023: Distribution of a dividend as proposed to the Annual General Meeting to be held on 25 April 2024.
MORE TO FOLLOW) Dow Jones Newswires
March 07, 2024 00:30 ET (05:30 GMT)
Kardex Holding AG / Key word(s): Annual Results
Kardex Holding AG: Financial Results 2023
07-March-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Media Information - Financial Results 2023
Zurich, 07 March 2024
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Financial Results 2023
. Sustained robust demand for intralogistics solutions despite the postponement of some larger projects
. Supply chain normalization led to significant efficiency improvements and enhanced production output
. Substantial increase of net revenues is mainly based on the significant increase in production output
. Kardex achieved profitability within the upper range of financial targets
The past year has been marked by a gradual return to normalcy in Kardex' business operations, following the challenging
turbulence of previous years. Notably, the demand for intralogistics solutions remained at significantly elevated
levels compared to pre-pandemic times, despite economic slowdowns in various industries. Equally significant was the
improvement in Kardex' supply chain, particularly within Kardex Remstar. This led to higher efficiency in the
factories, resulting in substantial increases in net revenues and profitability and leading to results in the upper
range of Kardex' communicated financial targets.
The sustained positive momentum in intralogistics demand, coupled with Kardex' strong market position, is evident in
its bookings, which totaled EUR 673.9 million, close to maintaining the high level of the previous year. While
decision-making processes by customers, particularly for larger projects that mainly impacted Kardex Mlog, experienced
a noticeable slowdown, the appetite for automation remained robust across all industry sectors and regions served by
Kardex. Notably, North America and Europe began to feel the initial positive effects of reshoring and increased
inventory levels. Whereas bookings for New Business decreased by 7.9%, bookings for Life Cycle Services grew by 9.5%.
As of 31 December, the order backlog stood at EUR 475.9 million, which is slightly below last year with EUR 510.5
million, but still at a high level.
Net revenues climbed 24.3% year-on-year to EUR 702.9 million due to gradual supply chain normalization within Kardex
Remstar, and accelerated progress in Kardex Mlog customer projects. New Business contributed 74.2% (71.1%) to net
revenues, while Life Cycle Services accounted for 25.8% (28.9%).
Although costs, particularly for personnel and electronic components, continued to rise, the previous year's price
adjustments and the efficiency gains achieved led to a higher gross profit margin, up from 31.4% last year to 33.6%.
Operating costs remaining proportionally stable resulted in a significantly improved operating result and an EBIT
margin of 12.2% (9.9%), representing the upper range of Kardex' financial targets. EBIT totaled EUR 85.9 million,
marking a 53.9% increase compared to last year. Net profit soared by 73.3% to EUR 66.9 million.
Kardex Remstar regains structural strength
Kardex Remstar achieved strong results, benefiting from sustained demand across nearly all markets. Bookings slightly
increased to EUR 527.6 million, surpassing the high level of the previous year (+3.5%), improved market conditions in
procurement, a substantial increase in production output, and the record-high order backlog from the previous year
translated into strong revenue growth of 21.6% to EUR 530.7 million. Price increases for Kardex' products and services
coupled with enhanced efficiency, led to a higher gross profit of EUR 201.0 million, representing a gross profit margin
of 37.9%. These positive developments enabled the operating result to regain its former strength, with EBIT increasing
by 46.2% to EUR 82.0 million, yielding a 15.5% margin. Order backlog remained comfortable at EUR 313.7 million at
year-end, providing a solid foundation for the new financial year.
Mixed results at Kardex Mlog
Kardex Mlog delivered mixed results in a challenging market environment. On the one hand, a substantial order backlog
from the prior year significantly contributed to revenue growth of 7.4% to EUR 113.4 million. On the other hand,
customer-driven order postponements led to significantly lower bookings of EUR 78.9 million, representing a downswing
of 37.1%. Gross profit increased to EUR 22.6 million, and the operating result at EBIT level reached EUR 6.5 million,
supported by increased volume and stringent cost management. The EBIT margin improved to 5.7%, returning to the
predefined target range. Despite the lower bookings, the year-end order backlog of EUR 96.0 million, remains solid.
This, together with a robust sales pipeline, provides the basis for a sound start into the new year albeit the fact
that Germany, Mlog's main market, remains volatile.
Kardex AutoStore business grows rapidly and maintains profitability
Kardex AS Solutions continues to excel in Europe and North America, with the additional reception of initial orders
from the APAC region in the latter half of the year. Bookings increased by 6.8% to EUR 67.6 million. Net revenues
reached EUR 59.1 million, resulting in a positive mid-single-digit operating result for the first time, despite ongoing
investments in geographic expansion.
Positive free cash flow and ROIC development
With improved supply conditions for raw materials and components, safety stock levels increased continuously to ensure
delivery capability. Consequently, net working capital grew significantly compared to the previous year. Nevertheless,
free cash flow remained positive at EUR 46.2 million (EUR -15.2 million), thanks to the strong operational performance.
Return on invested capital (ROIC) surged significantly to 37.6% (27.5%).
Change in Group Management
As of 01 June, Jens Hardenacke has taken over as CEO of Kardex. The Board of Directors is pleased to have found a new
CEO who, in addition to his industry expertise, brings a great deal of management experience from Kardex' growth
markets. The Chairman of the Board, Felix Thöni, who led the Company on an interim basis from beginning of March to end
of June, has returned to his core responsibilities.
Proposals to the Annual General Meeting
In line with the dividend policy of distributing up to 75% of the net profit and taking into account future higher
investments for ERP-Systems and factory infrastructures, the Board of Directors will propose a dividend of CHF 5.00
(CHF 3.50) to the Annual General Meeting of 25 April 2024. All current members of the Board of Directors, except Ulrich
Looser, are standing for re-election at the next Annual General Meeting. The Board of Directors thank Ulrich Looser for
his 12 years of dedicated service as Vice Chairman and his significant contributions as head of the CNC-Committee and
wishes him all the best for his future.
Outlook
The flattening of inflation and the stabilization of the procurement market provide positive growth drivers, albeit
against the backdrop of cooling global growth expectations. Nevertheless, the Board of Directors and the Group
Management are confident that Kardex' customers will continue investing in intralogistics solutions to enhance their
competitiveness. Additionally, the increasing difficulty in recruiting qualified personnel is driving greater
investments in automated solutions. Kardex is well-positioned to capitalize on these megatrends and anticipates
continued development in line with the financial targets throughout the cycle.
Key figures
in EUR million
01.01. - 31.12. 2023 (%) 2022 (%) (+/-%) Bookings 673.9 95.9% 698.6 123.5% -3.5% Order backlog (31.12.) 475.9 67.7% 510.5 90.3% -6.8% Net revenues 702.9 100.0% 565.6 100.0% 24.3% Gross profit 235.9 33.6% 177.7 31.4% 32.8% OPEX 150.0 21.3% 121.9 21.6% 23.1% EBITDA 99.3 14.1% 65.4 11.6% 51.8% Operating result (EBIT) 85.9 12.2% 55.8 9.9% 53.9% Result for the period (net profit) 66.9 9.5% 38.6 6.8% 73.3% Free cash flow 46.2 -15.2 403.9% ROIC 37.6% 27.5%
31.12.2023 (%) 31.12.2022 (%) (+/-%) Net working capital 102.2 76.2 34.1% Net cash^1 119.6 102.7 16.5% Equity/Equity ratio 240.1 56.9% 204.6 56.2% 17.4% Employees (FTE) 2'397 2'097 14.3%
2023 (%) 2022 (%) (+/-%) Distribution per share (CHF)^2 5.00 3.50 42.9%
===
^1 Definition according Alternative Performance Measures (APM) see note 1 of the consolidated financial statements.
^2 2023: Distribution of a dividend as proposed to the Annual General Meeting to be held on 25 April 2024.
MORE TO FOLLOW) Dow Jones Newswires
March 07, 2024 00:30 ET (05:30 GMT)
