Kardex AG: Year End Results 2016 / Continued profitable growth for the Group
8 March 2017, Company News
Kardex AG / Key word(s): Final Results
Media information - Year End Results 2016
Zurich, 8 March 2017
Continued profitable growth for the Group
The Kardex Group performed well once again in the 2016 financial year. Both divisions reported good bookings, increased revenue and improved profitability in challenging markets. Kardex Remstar increased its profitability once again on the basis of a good revenue mix and stringent cost control. Kardex Mlog experienced a strong growth spurt, while maintaining its margins. At Group level, the EBIT margin increased to a new record level of 11.5%.
Good bookings and increasing revenue
A strong increase in bookings in the case of Kardex Mlog and a continuing rise in demand at Kardex Remstar resulted in bookings of EUR 373.6 million, an increase of 6.9% or EUR 24.0 million on the previous year (EUR 349.6 million). The order backlog at the end of the year was EUR 137.8 million, up around 11% on the previous year's value. The good bookings had a positive impact on the revenue level. Revenue increased by 6.1% to EUR 358.5 million (EUR 337.9 million) in the period under review, or by 7.2% to EUR 362.2 million when adjusted for currency effects. Currency effects had a slightly negative effect on the annual result in 2016, whereas in the previous year the rise in the value of the US dollar against the euro had a significant positive effect.
Operating result increases to EUR 41.3 million
The higher revenue was accompanied by a rise in expenditure for sales activities and an increase in the number of employees. The Group headcount increased by 43 full-time positions and totaled 1 552 at the end of the period. Expenditure on R&D activities was once again deliberately increased in absolute terms and, as in the previous year, accounted for 2.8% of revenue. Overall, operating expenditure increased moderately by 1.6% to EUR 87.1 million compared to the previous year. At EBIT level, the operating result increased by 11.3% to EUR 41.3 million, corresponding to an EBIT margin of 11.5%. The tax rate increased to 22.8% (20.8%) as there were fewer tax loss carryforwards. The Kardex Group's annual profit increased by 8.1% to EUR 30.8 million (EUR 28.5 million). This result equates to a return on capital employed (ROCE) of 42.3% (46.2%).
High EBIT margin for Kardex Remstar
Following strong growth during the previous year, Kardex Remstar consolidated its position as market leader in its segment of the intralogistics market. At EUR 289.3 million, its bookings were up 3.3% on the previous year and revenue increased by 3.9% to EUR 283.9 million. In terms of geographic regions, the European and Asian markets made a greater contribution to growth, while the upheaval in the Middle East and Africa and downward trends in the North American market had a negative effect on revenue. At EUR 40.3 million or an EBIT margin of 14.2%, the operating result reached a new record level, 11.0% above the previous year's result. The improvement in the margin was facilitated by increased volumes, a better revenue mix and good cost management. In the course of this improvement, the company is increasing the EBIT margin target range to between 7% and 15% (over the cycle). The intralogistics market is increasingly influenced by global trends such as increased digitization or the path to Industry 4.0. Kardex Remstar has therefore expanded its technology expertise, created a new Head of Technology function and appointed a proven intralogistics expert to this role.
Profitable growth path at Kardex Mlog confirmed
Demand across all elements of the product portfolio offered retained at a high level. Despite the focus on projects with a well-balanced opportunity/risk profile proved itself once again, it was still possible to accelerate growth. Bookings rose by 21.5% to a record EUR 84.7 million (EUR 69.7 million), benefiting from widespread, solid demand across the entire range of products and services. Total revenue increased by 16.1% to EUR 75.1 million. The operating result increased to EUR 3.8 million (EUR 3.4 million), corresponding to an EBIT margin of 5.1% (5.3%). Following a successful return to a solid growth path, Kardex Mlog's focus in the coming years will be on operational excellence in order to sustainably secure profitability in the defined target range (EBIT margin 4% to 6% over the cycle).
Equity ratio increases to 60%
The Kardex Group has no debts and shows no potential depreciation risks. As of the end of 2016, the balance sheet total had risen slightly to EUR 232.0 million. The Group enjoys a solid equity ratio of 59.6% (58.7%) and net cash of EUR 105.7 million (EUR 112.3 million). The net working capital increased to EUR 65.6 million at the end of the year (EUR 51.4 million), which is due mainly to the higher accounts receivable. These were driven by strong revenue in December and amounted to EUR 59.6 million, or around 24% more than one year ago, at the end of the year. The higher accounts receivable and a significantly lower level of advance payments at the end of the year are a snapshot in time and in combination with higher investment spending led to a lower reported free cash flow of EUR 16.4 million (EUR 42.7 million).
Higher payout once again
The Board of Directors will apply for a payout of CHF 3.30 (CHF 3.00) at the Annual General Meeting in the form of a nominal value reduction. The current nominal value of the Kardex share is CHF 7.35 and thus still offers scope for the continuation of tax-free payouts to individuals who are resident in Switzerland.
The Board of Directors and Group Management look forward confidently to the current 2017 financial year. Despite the economic and political uncertainty in some markets, both divisions are well positioned to exploit the continued positive market potential. Moreover, the good order backlog levels and the stabilizing nature of the service business in both divisions provides some protection against any possible economic fluctuations. On the whole, the Group expects to perform well within the framework of the financial goals that have been announced.
Contact for media and investors
Kardex Group - Corporate Profile
The Kardex Group is a global industry partner for intra-logistic solutions and a leading supplier of automated storage solutions and material handling systems. The Group consists of two entrepreneurially managed divisions, Kardex Remstar and Kardex Mlog. Kardex Remstar develops, produces and maintains shuttles and dynamic storage and retrieval systems and Kardex Mlog offers integrated materials handling systems and automated high-bay warehouses. The two divisions are partners for their customers over the entire lifecycle of a product or solution. This begins with an assessment of customer requirements and continues via the planning, realization and implementation of customer-specific systems through to ensuring a high level of availability and low lifecycle costs by means of customer-oriented lifecycle management. Around 1 550 employees in over 30 countries work for the Kardex Group.
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.
Document title: Kardex_Media information Year End Results 2016
End of ad hoc announcement
|Phone:||+41 (0)44 419 44 79|
|Listed:||Regulated Unofficial Market in Berlin, Munich, Stuttgart; Open Market (Basic Board) in Frankfurt; SIX Swiss Exchange|
|End of Announcement||EQS Group News Service|