Kardex AG: Another successful year for Kardex
5 March 2020, Ad Hoc
Kardex AG / Key word(s): Annual Results
Media information - Year End Results 2019
Zurich, 5 March 2020
Another successful year for Kardex
- High order backlog supports strong revenue growth to EUR 471.2 million
- Profitability of both divisions reaches the upper end of the target corridors raised in 2019
- Significant investments in the future growth of the Group
- Strong earnings growth enables dividend to be increased by around 13% to CHF 4.50 per share
- Sound balance sheet offers strategic flexibility in corporate development
The Kardex Group looks back on the most successful year in its recent history. The order books remain full, although the high order backlog of the previous year could not quite be maintained. Group revenues again showed double-digit growth and the profitability of both divisions reached new highs at the upper end of the target corridors raised in 2019, despite significant investments in the future. At EUR 63.5 million, the operating result (EBIT) was the highest ever achieved.
The Kardex Group recorded a satisfying bookings level of EUR 452.4 million. Although 6.0% down on the exceptional previous year, they are still around 10% up on 2017. The very high order backlog at the beginning of the year, which led to extended delivery times, was converted into renewed sales growth of 11.3% to EUR 471.2 million despite initial capacity bottlenecks. While new business grew by 12.3%, Life Cycle Service grew by 9.2% and thus achieved a revenue share of 31.9%.
The order backlog at the end of the year was EUR 217.8 million, corresponding to a workload of 5.5 months, which is similar to the good level at the end of 2017. As a result of this encouraging development and significant investments in Kardex's future growth, the number of employees rose by 106 to 1 913 full-time equivalents.
Strong increase in profitability
In addition to these effects, further efficiency gains and strict cost management contributed to the Kardex Group's strong operating result. The bottom line was an EBIT of EUR 63.5 million, with an EBIT margin of 13.5% and a further increase of 19.4% over the previous year. After deducting the financial result of minus EUR 3.3 million, this results in a net profit of EUR 44.9 million. This represents a margin of 9.5%, a ROCE of 51.2% and earnings per share of CHF 6.39.
Kardex Remstar achieves excellent result
Revenues increased by 12.9% to EUR 392.4 million with a similar revenue mix, benefiting from full order books at the beginning of the year. Despite significant investments in future growth, capabilities and performance, the operating result increased overproportionately again and rose by 20.4% to EUR 61.4 million. Strict cost management, efficiency improvements and the increase in revenues were the main drivers of EBIT margin of 15.6%.
At the end of the year, the order backlog amounted to EUR 159.8 million, the second highest figure ever achieved. This ensures a good start to the current financial year. The slowdown in order intake carries some uncertainty and may point to a weaker second half of 2020.
Kardex Mlog with higher operating result but lower bookings
Due to the record high order backlog at the beginning of the year, the revenue development was less affected by the market environment. Revenues increased by 4.2% to EUR 79.1 million with a slightly higher gross profit margin of 22.8%. Efficiency improvements and a generally high cost discipline led to a further improvement in the operating result, which at EUR 5.6 million was around 10% above the previous year. This corresponds to an EBIT margin of 7.1%, which is at the upper end of the EBIT target corridor of 4-8% that was raised a year ago.
The order backlog at the end of the reporting period amounted to EUR 58.0 million, which corresponds to an average workload of nine months. On this basis and despite a market environment characterized by further uncertainty, Kardex Mlog expects results for 2020 roughly in line with those of the previous year.
Solid balance sheet of the Kardex Group with high equity ratio
Increased dividend per share
As already communicated, the Board of Directors will propose to the Annual General Meeting that Dr. Andreas Häberli and Eugen Elmiger be newly elected to the Board. Andreas Häberli, Chief Technology Officer of the dormakaba Group, will contribute extensive technological know-how, particularly expertise in many areas of digitization. Eugen Elmiger, CEO of the globally active Maxon Motor, will further enhance the Kardex Group's international market and industry knowledge. With the exception of Walter T. Vogel, who is leaving the Board after 14 years, the current members will stand for re-election. We would like to take this opportunity to thank
1 2019: Distribution of a dividend as proposed to the Annual General Meeting to be held on 14/04/2020.
Contact for media and investors
Kardex Group - Corporate Profile
Document title: Kardex_Media Information Year End Result 2019
End of ad hoc announcement
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