EQS-News: KION significantly increases profitability in the first half of 2024 driven by improvements in both operating segments

KION significantly increases profitability in the first half of 2024 driven by improvements in both operating segments

• Revenue up by 2 percent to € 5.736 billion (H1 2023: € 5.617 billion)
• Adj. EBIT improves 28 percent to € 447 million (H1 2023: € 348 million)
• Adj. EBIT margin of 7.8 percent (H1 2023: 6.2 percent)
• Free cash flow of € 202 million (H1 2023: € 229 million)
• Outlook for 2024 confirmed with narrowed bandwidths

Frankfurt am Main, July 31^st, 2024 – The KION Group continued to deliver strong earnings and margins in the first half of 2024. With revenues of € 5.736 billion (H1 2023: € 5.617 billion) and a 28 percent higher adjusted EBIT of € 447.0 million (H1 2023: € 348.3 million), the adjusted EBIT margin went up by 160 basis points to 7.8 percent (H1 2023: 6.2 percent).

“Significant year-on-year profitability improvements in both operating segments led to a 28 percent increase of our adjusted EBIT in the first half of the year,” says Rob Smith, Chief Executive Officer of KION GROUP AG. "Despite a slower market recovery in the current financial year, we are well on track to achieve our outlook. Our clear strategy, our broad range of products and solutions for customers and our presence in all key markets position KION very well for the future.”

The Industrial Trucks Services segment increased total revenues by 4.1 percent to € 4.306 billion (H1 2023: € 4.135 billion), supported by a higher number of products delivered and previous price increases. The revenue in the service business grew by 2.3 percent across all key categories. Despite a slight increase in the second quarter, total revenue in the Supply Chain Solutions segment declined to € 1.451 billion (H1 2023: € 1.497 billion) in the first half of 2024 – mainly due to lower order intake in the project business in previous quarters. The service business revenue increased by 11.9 percent compared to the first half of 2023.

Adjusted EBIT for the Industrial Trucks Services segment improved substantially to € 470.7 million (H1 2023: € 378.9 million). Revenue growth combined with stable material purchase prices led to a significantly higher gross margin. The adjusted EBIT margin increased to 10.9 percent (H1 2023: 9.2 percent). At € 42.1 million, adjusted EBIT in the Supply Chain Solutions segment almost tripled compared to the previous year (€ 14.8 million). Improved project implementation, efficiency measures and, in particular, the growth in the service business contributed to the improvement in earnings and margins. The adjusted EBIT margin rose to 2.9 percent (H1 2023: 1.0 percent).

KION Group net income improved to € 181.7 million in the first half of 2024 (H1 2023: € 146.3 million). This corresponds to undiluted earnings per share of € 1.35 (H1 2023: € 1.09). Free cash flow was € 202.2 million (H1 2023: € 228.8 million) in the first six months of 2024 reflecting the high operating result.

Outlook confirmed and narrowed

The KION Group expects the global industrial trucks market (in units) to remain on the prior year level in 2024 compared to earlier expectations of slight growth. In the market for supply chain solutions, the KION Group now expects the global market volume in 2024 (measured in terms of revenue) to decline slightly compared with the previous expectation of a slight growth.

Based on the business performance in the first half of the year and the updated market expectations, the Executive Board of KION GROUP AG has confirmed its outlook and narrowed its guidance ranges for the 2024 financial year as follows:

Key performance indicators for the KION Group and its two operating segments for the first half-year of 2024 and for the second quarter ending June 30, 2024

[1] Adjusted for effects of purchase price allocations as well as non-recurring items.

[2] Net income attributable to shareholders of KION GROUP AG: € 177.0 million (H1/2023: € 143.3 million). EPS calculation is based on average number of shares of 131.1 million.

[3] Free cash flow is defined as cash flow from ongoing business plus cash flow from investment activity.

[4] Prior-year figures for order intake and order book have been definition-related adjusted in the SCS segment.

[5] Figures as of June 30, 2024, compared to balance sheet date Dec. 31, 2023.

[6] Number of full-time equivalents incl. apprentices and trainees as of June 30, 2024, compared to balance sheet date Dec. 31, 2023.

The Company

The KION Group is one of the world’s leading providers of industrial trucks and supply chain solutions. Its full spectrum of services includes industrial trucks, such as forklift trucks and warehouse trucks, as well as integrated automation technologies and software solutions for the optimization of supply chains—including all related services. The KION Group’s solutions ensure the smooth flow of materials and information in customers’ warehouses, production plants, and distribution centers in over 100 countries.

The MDAX listed group is the largest manufacturer of industrial trucks in the EMEA region based on the number of units sold in 2022. Based on revenue for the year 2022, the KION Group is the leading overseas manufacturer in China, and including domestic manufacturers, the third-largest supplier there. The KION Group is also one of the world’s leading warehouse automation providers, based on 2022 revenue.

At the end of 2023, more than 1.8 million industrial trucks of the KION Group were in use by customers from all manner of sectors and of varying sizes on six continents. The group currently has more than 42,000 employees and generated revenue of approx. € 11.4 billion in the 2023 financial year.

You can access up-to-date image material for the KION Group via our image database https://KION-mediacenter.canto.global/v/MediaCenter/ as well as on our respective brands’ websites.

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Disclaimer 

This release and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdiction.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ significantly from the results that are currently expected due to various risk factors and uncertainties such as changes in economic or industry-specific conditions, changes in the market environment or political situation, changes in domestic or international legislation, interest rate or exchange rate fluctuations, legal disputes and investigations, and the availability of financial resources. We do not assume any responsibility for updating the forward-looking statements in this release.

Further information for media representatives

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