EQS-News: Krones improved all key financial figures in 2024 – Executive Board forecasts continuation of profitable growth in 2025

Krones improved all key financial figures in 2024 – Executive Board forecasts continuation of profitable growth in 2025
 

• Krones increased revenue in 2024 by 12.1% year on year to €5,293.6 million.
• Due to customers’ continued willingness to invest, Krones increased its order intake compared to the previous year’s high level by 1.6% to €5,460.7 million. At €4,289.5 million as of the end of 2024, the order backlog was up 4.1% on the previous year.
• Despite persistently high costs, Krones has significantly strengthened profitability. EBITDA improved by 17.5% in 2024 to €537.1 million. The EBITDA margin rose from 9.7% in the previous year to 10.1%.
• Free cash flow was significantly higher than the level of the previous year. Adjusted for acquisitions, it increased in 2024 from €13.2 million to €292.5 million. Krones improved ROCE (return on capital employed) to 18.2% in 2024 (previous year: 16.3%).
• The Executive Board is confident overall for the 2025 financial year and forecasts revenue growth of 7% to 9% with an improved EBITDA margin of 10.2% to 10.8% and ROCE of 18% to 20%.

According to the preliminary figures for 2024, Krones continued its stable and profitable growth in the past financial year, despite difficult macroeconomic conditions. As a leading supplier of filling and packaging technology, the company operates in markets that are less dependent on economic cycles.

Revenue in 2024 exceeded the five billion euro mark for the first time and increased by 12.1% year on year, from €4,720.7 million to €5,293.6 million. Krones thus achieved its growth forecast of 9% to 13%. The stable material availability had a positive impact on production efficiency in 2024 and thus on total output and sales. In the previous year, production output was affected at times by tight supplies of electrical components.

Despite critical overall economic conditions, customers in the international beverage industry remain keen to invest. In the fourth quarter of 2024, order intake increased slightly compared to the preceding quarter (€1,323.2 million) to €1,344.6 million, and was 6.5% higher than in the fourth quarter of 2023. Compared to the previous year’s high level of €5,376.6 million, order intake increased by 1.6% in the full year 2024 to €5,460.7 million. Due to the strong development in customer orders, Krones’ order backlog increased further in 2024 despite the significant revenue growth. At the end of 2024, the company had an order backlog totalling €4,289.5 million. This means that the order backlog increased by 4.1% compared to the previous year (€4,122.3 million).
 

EBITDA margin improved to 10.1% (previous year: 9.7%)

Despite persistently high material and labour costs, Krones once again increased its profitability in 2024, as forecast. High production capacity utilisation and the consistent implementation of the strategic measures to improve the company’s efficiency and cost structure contributed significantly here. Earnings before interest, taxes, depreciation and amortisation (EBITDA) went up in 2024 by 17.5% year on year, from €457.3 million to €537.1 million. The EBITDA margin rose from 9.7% to 10.1%. This placed it within the full-year 2024 guidance range of 9.8% to 10.3%.

Earnings before taxes (EBT) increased slightly more than EBITDA in 2024, improving by 22.9% from €310.5 million in the previous year to €381.6 million. The EBT margin climbed to 7.2% (previous year: 6.6%). Krones generated a 23.4% higher consolidated net income of €277.2 million in 2024 (previous year: €224.6 million). This corresponds to earnings per share of €8.77 (previous year: €7.11).

Krones significantly increases free cash flow, ROCE likewise improved

Krones spent a total of €179.4 million on acquisitions in 2024 (previous year: €114.5 million). The majority of this related to the acquisition of Netstal Maschinen AG. Despite the cash outflows for M&A activities, the company improved its free cash flow in 2024 by €214.5 million to €113.2 million (previous year: minus €101.3 million). Free cash flow before acquisitions increased even more significantly, by €279.3 million to €292.5 million (previous year: €13.2 million). Krones considerably improved the working capital to revenue ratio to 17.0% (previous year: 17.8%). Return on capital employed (ROCE) increased substantially from 16.3% in 2024 to 18.2%. The ROCE target for 2024 was 17% to 19%.

Krones had a comfortable €439.9 million in net cash (cash and cash equivalents less bank debt) at the end of 2024 (previous year: €444.7 million). The equity ratio was 40.5% (previous year: 38.3%). Overall, Krones continues to possess a very solid and stable financial and capital structure.

All stated figures are preliminary and are subject to change in the course of auditing by the independent auditors. Krones publishes its Annual Report for 2024 on 20 March 2025.

Executive Board forecasts also profitable growth in 2025

In view of the difficult global economic situation, Krones started the 2025 financial year with realistic optimism. A large order backlog ensures production capacity utilisation through to the beginning of 2026. This assessment is also supported by the robust demand for Krones’ products and services. At the same time, the business environment remains challenging for the company. Global economic growth remains subdued and there are risks for the global economy and thus also for Krones’ business performance. These include geopolitical tensions in Europe, the Middle East and other parts of the world. Another source of uncertainty is the tariff policy of the new US administration, which could present the threat of trade conflicts. Increasing protectionism, material shortages and the global supply chain problems that could result from military action along important trade routes or from trade conflicts, are other uncertainty factors.

Based on the prevailing macroeconomic outlook and the current expected development of the markets relevant to Krones, the company forecasts consolidated revenue growth of 7% to 9% in 2025.

On the basis of increasing revenue, an ongoing disciplined price strategy and continued implementation of the efficiency and cost optimisation measures, Krones aims to improve profitability again this year compared to 2024. At group level for 2025, the company forecasts an EBITDA margin of 10.2% to 10.8%.

For the third performance target, return on capital employed (ROCE), Krones expects between 18% and 20% in the current financial year.

Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Tel.: +49 (0) 9401 - 701169
E-Mail: olaf.scholz@krones.com