Kardex AG: Continued profitable growth for the Kardex Group
11 August 2016, Company News
EQS Group-Ad-hoc: Kardex AG / Key word(s): Half Year Results
Media information - Half Year Results 2016
Zurich, 11 August 2016
Continued profitable growth for the Kardex Group
Kardex continues to perform well. The good result of the first half of 2016 ties in with the positive developments of the previous periods. In the first half of the year, the Group recorded strong levels of bookings, slightly higher revenues and a further increase in profitability.
Reduced currency effects
Compared to the previous year, the half-year figures have barely been influenced by currency effects. The consolidated turnover would have been about EUR 2 million higher without currency effects, but at EBIT level these effects were more or less neutralised.
Strong levels of bookings
With a 13.5% increase in bookings to EUR 204.7 million (previous year: EUR 180.3 million), the 200 million mark was passed for the first time in the first half year. The driving force behind this latest increase was Kardex Mlog, whose bookings increased by roughly 67% compared to the same period last year. In both divisions, the order backlog is higher than in the same period last year. On the other hand, the generated revenue of EUR 170.5 million was only slightly higher by 3.4% than in the same period in the previous year.
Double-digit growth in operating result
Thanks largely to economies of scale and further efficiency improvements in the factories, the higher revenue led to the gross margin at Group level increasing to 35.5% (previous year: 34.0%). However, the operative costs also rose, especially as the result of further increases in development expenditure. At EUR 18.0 million, the operating result (EBIT) equates to a 10.6% profit margin and is EUR 2.3 million respectively 14.6% higher than in the same period last year. The financial result, which benefited from currency gains in the same period last year, this time recorded a currency loss of EUR 0.5 million (previous period: currency gain of EUR 1.3 million). The recorded net profit of EUR 13.0 million is, however, still 5.7% up on the same period in the previous year.
Further increase in profitability at Kardex Remstar
In terms of volume, Kardex Remstar continued to develop positively in the first half year and was able to further increase its profitability despite higher expenditure for product and market development. Bookings saw a moderate 1.2% (in local currency 2.7%) increase on the strong level in the same period in the previous year and revenue rose by 3.9% (in local currency 5.4%). On the other hand, a strong operating result of EUR 17.9 million was recorded, up 16.2% on the same period in the previous year. A look at the geographic revenue development shows that the American market is still developing strong; positive trends can be seen in Southern Europe; Central and Northern Europe are stable; and the Asian markets, with the exception of India and Malaysia, are behind expectations. The revenue mix showed a pleasing increase in the after sale service share to 29.6%. OEM revenue is also already contributing 2.0% (previous year: 0.8%) to the total revenue. The development activities focused mainly on new products' planned readiness for series production.
Strong Bookings at Kardex Mlog
Kardex Mlog achieved strong bookings which increased by 67.0% against the same period last year. This development allows the company to focus further on projects with a balanced reward - / risk profile. The clear increase in bookings did not yet lead to a major increase in revenue in the first half year. Instead, this remains just 2.3% above that in the same period in the previous year. To handle the higher level of backlog, the headcount has been increased by about 10%. At EUR 1.4 million (EBIT margin 3.9%), the recorded operating result is only negligibly below that in the same period of last year (EUR 1.5 million). The high order backlog of EUR 58.4 million will positively affect revenue in the second half year.
Sustained solid Balance sheet
Kardex's balance sheet total has risen to EUR 237.1 million and the equity ratio has further increased to 59.8% (previous year: 58.7%). In the period under review, the generated free cash flow amounted to EUR 10.7 million and was influenced by normalised accounts receivables and higher investments compared to the higher free cash flow of the same period last year. The Group's net cash position increased to EUR 122.4 million as of 30 June 2016. However it should be taken into account that the pay-out to the shareholders through the reduction of the nominal value of CHF 3.00 per share (CHF 23.2 million) took place on 7 July 2016, i.e. after this balance sheet date. The Group continues to command the necessary flexibility to make targeted use of opportunities to further strengthen its market position.
The market for intra-logistics solutions remains attractive, even if short-term demand dynamics vary in different regions of the world. In view of the good order backlog, the Board of Directors and Group Management expect the Group to continue developing positively in line with the communicated financial targets.
Today, 11 August 2016 at 01.00 p.m. (CET), an analyst and media conference call will be held with CEO Jens Fankhänel, CFO Thomas Reist as well as Investor Relations Contact Officer Edwin van der Geest to discuss the half-year results. The conference call will be held in English. The corresponding presentation is available on http://www.kardex.com/index.php?id=2186&no_cache=1&L=0.
Alternatively you can also participate via audio webcast on http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=3755. Please note that questions can only be placed via the conference call.
Key figures (EUR millions)
Kardex Group - Corporate Profile
This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Kardex's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Kardex's past and future filings and reports and in past and future filings, press releases, reports and other information posted on Kardex Group companies' websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Kardex disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.
End of ad hoc announcement
Document title: Media information - Half Year Results 2016
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