Kardex AG: Positive business performance in the first half of 2017
10 August 2017, Company News
Kardex AG / Key word(s): Half Year Results
Media information - Half Year Results 2017
Zurich, 10 August 2017
Positive business performance in the first half of 2017
The Kardex Group is continuing on the road to success. Both divisions are benefiting from favorable market conditions and their strong position in the intralogistics market. The Group is reporting good bookings, generating higher revenue and margins and investing in the future.
At EUR 209.1 million, the Group's bookings are up 2.1% for the same period in the previous year. While, as expected, Kardex Mlog posted fewer new orders, as the last year was positively influenced by a huge order, Kardex Remstar made double-digit gains. The Kardex Group generated revenue of EUR 178.6 million, up 4.8% on the first half of 2016.
Thanks to the revenue mix, which included enhanced service business and stronger service margins, the gross margin improved further, reaching a value of 36.0% (35.5%) at Group level. Operational costs increased at a disproportionately lower pace, rising by 4.2%. This resulted in an operating income (EBIT) of EUR 20.0 million, 11.1% higher than the result obtained during the same period last year and equating to a return on sales of 11.2%. With a comparable financial result and an almost normalized tax rate of 25.9%, net profit increased by 7.7% to EUR 14.0 million (EUR 13.0 million).
Robust development at Kardex Remstar
Due to the order mix, revenue in the first half of the year rose only by 4.7% compared to bookings, reaching a figure of EUR 140.9 million. The order backlog therefore increased significantly by 15.1% to EUR 113.7 million. The service business made gains of approximately 12%, contributing 31.7% to the division's revenue.
Kardex Remstar invested more in the first half of the year in process digitalization and consequently in the associated IT costs. Conversely, administration costs were reduced. Development costs continue to account for more than 3% of revenue. The operating income increased by 10.1% to EUR 19.7 million (EUR 17.9 million), corresponding to an EBIT margin of 14.0% (13.3%).
Kardex Mlog invests in profitable growth
Operating costs increased by 13.0% due to deliberately higher investments in expanding product sales and in development. Accordingly, the operating income that was generated increased only slightly by 7.1% to EUR 1.5 million in the first half of the year; the EBIT margin of 3.9% achieved during the same period in the previous year increased to 4.0%.
The joint market activities with Kardex Remstar and the cross-divisional solutions presented for the first time at the LogiMAT 2017 trade fair generates great interest among customers.
Solid balance sheet and good free cash flow
Continued positive outlook
Today, 10 August 2017 at 02.00 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/presentation.
Alternatively you can also participate via audio webcast on www.audio-webcast.com/kardex. Please note that questions can only be placed via the conference call.
Kardex Group - Corporate Profile
Document title: Kardex_Half Year Results 2017
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