Kardex Holding AG: Half-Year Results 2023

27 July 2023, Ad Hoc

Kardex Holding AG / Key word(s): Half Year Results

27-Jul-2023 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Media information – Half-Year Results 2023

Zurich, 27 July 2023

Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Half-Year Results 2023

  • Continued good demand for intralogistics solutions, bookings up by around 6%
  • Net revenues up by roughly 30% in the first half of the year
  • Stabilization of the availability of components leads to increased efficiency in the supply chain
  • Kardex and Kardex Remstar return to the upper range of their financial targets

The first half of 2023 was marked by a certain normalization of business activity following the severe turbulences of previous years. The increasing demand for intralogistics solutions continued in all market regions despite economic slowdown trends in various industries. Even more important, however, was the easing of the situation within the supply chain, particularly at Kardex Remstar. Even though the procurement market was and is still volatile, orders were able to be processed more efficiently than in the previous year. This led to a strong boost in net revenues and a significant improvement in profitability, and thus to a return to the upper range of the communicated financial targets.

The continuing positive dynamics of demand for intralogistics solutions combined with Kardex' strong market position is reflected in bookings, which at EUR 339.1 million were again 5.8% higher than in the same period of the previous year. Despite a noticeable slowdown in the decision-making processes of customers especially in the context of larger projects and thus effecting mainly Kardex Mlog, the strong demand for automation continued across all industry segments and regions served by Kardex. In particular, the first effects of reshoring and increased inventory levels are materializing in North America and Europe. Bookings in New Business increased by 5.1% compared to last year, and in Life Cycle Services by 7.4%. As of 30 June 2023, the order backlog represented EUR 510.0 million, on the same level as at the beginning of the year despite the strong net revenue growth and 16.6% higher than a year ago.

Net revenues increased by 29.9% year on year to EUR 334.5 million, due to the improved situation on the procurement markets and the gradual normalization within Kardex Remstar's supply chain. Of the net revenues generated, 74.4% (69.7%) came from New Business and 25.6% (30.3%) from Life Cycle Services.

Although cost increases continued, particularly in relation to personnel and electronic components, the price increases of the previous year and the achieved efficiency gains were reflected in an improvement of the gross profit margin, which rose from 31.7% in the prior-year period to 33.2%. Operating costs of EUR 67.8 million increased under-proportionately by 17.5%. This resulted in a strongly improved operating result and an EBIT margin of 12.9% (9.2%), which marks a return to the range of the financial goals. EBIT in the first half of the year amounted to EUR 43.1 million, an increase of 81.1% compared to the same period of the previous year. The result for the period (net profit) increased by 105.1% to EUR 32.4 million.

Kardex Remstar returns to the old strength
Kardex Remstar continues to benefit from sustained demand in all markets, especially in North America. At EUR 272.5 million, the strong bookings of the prior-year period were again exceeded by 7.0%, with bookings of Life Cycle Services once more outpacing New Business. The order backlog at the end of the period was 7.0% higher than at the beginning of the year, although order processing has picked up significantly. The supply chain bottlenecks and constraints have improved considerably but are still far from a normalized situation. Missing parts still lead to costly inefficiencies. In contrast, the difficulties of the ramp-up at the plant in the US have eased considerably. With net revenues of EUR 245.3 million (EUR 200.2 million), Kardex Remstar achieved a 22.5% increase. In the wake of these improvements, Kardex Remstar's EBIT increased by 73.1% compared with the weak prior-year period to strong EUR 41.2 million. This corresponds to an EBIT margin of 16.8% which is at the upper end of the financial target range.

Kardex Mlog shows stable developments
Despite some delays in order placements by customers, Kardex Mlog continues to report bookings on the level of previous year and can look at a full sales funnel. Through the inclusion of Rocket Solution's portfolio in the own offering, the market position of Kardex Mlog in the lightgoods business has strengthened. Although bookings at EUR 52.5 million were slightly down on the same period last year (EUR 54.7 million), the order backlog at EUR 129.7 million was at the same level as at the beginning of the year. Net revenues increased by 5.8% compared to last year to EUR 53.3 million in the year's first half. The EBIT of EUR 2.1 million was slightly below the previous year's period (EUR 2.8 million), but is expected to regain momentum with the closing of large profitable projects in the second half of the year.

Kardex AutoStore is growing rapidly and is profitable
The encouraging development of Kardex AutoStore continues in Europe and North America. In addition, the first orders from the APAC region are expected in the second half of the year. Bookings increased by 23.9% to EUR 14.1 million. Net revenues generated in the year's first half amounted to EUR 35.9 million, resulting in a positive operating result in the mid single digit range for the first time, despite the continuing investments into the geographic expansion.

Positive free cash flow and ROIC trend
Due to the improvement in the supply situation for raw materials and components, safety stock levels were continuously increased in order to remain able to deliver. As a result, net working capital increased substantially compared to a year ago. Free cash flow was positive at EUR 12.2 million due to the good result and despite the ongoing investment activities, and return on invested capital (ROIC) increased again significantly to around 38% (32.5%).

Jens Hardenacke has been appointed as CEO
As of 01 June 2023, Jens Hardenacke has taken over as the new CEO of Kardex. The Board of Directors is pleased to have found a new CEO who, in addition to his industry expertise, brings a great deal of management experience from Kardex' growth markets in North America and APAC (Asia Pacific). The Chairman of the Board, Felix Thöni, who has led the Company as CEO on an interim basis since 01 March 2023, has returned to his core responsibilities.

The flattening of inflation and the easing of tension in the procurement market are positive growth drivers, but contrast with the significant cooling of growth expectations worldwide. However, the Board of Directors and Management are confident that Kardex' customers will continue to invest in intralogistics solutions to maintain or strengthen their competitiveness. In addition, many companies are experiencing increasing difficulty finding suitable skilled workers and are therefore investing increasingly in automated solutions. Kardex is well positioned to continue to benefit from these megatrends and therefore expects to continue to develop in line with the communicated financial targets.

Key figures

in EUR million

01.01. - 30.06.     2023 (%)     2022 (%) (+/-%)
Bookings     339.1 101.4%     320.5 124.5% 5.8%
Order backlog (30.06.)     510.0 152.5%     437.4 169.9% 16.6%
Net revenues     334.5 100.0%     257.5 100.0% 29.9%
Gross profit     110.9 33.2%     81.5 31.7% 36.1%
Operating expenses (OPEX)     67.8 20.3%     57.7 22.4% 17.5%
EBITDA     47.6 14.2%     28.0 10.9% 70.0%
Operating result (EBIT)     43.1 12.9%     23.8 9.2% 81.1%
Result for the period (net profit)     32.4 9.7%     15.8 6.1% 105.1%
Free cash flow     12.2       -9.2   232.6%
ROIC     37.5%       32.5%    
      30.06.2023 (%)     30.06.2022 (%) (+/-%)
Net working capital     97.4       62.4   56.1%
Net cash1     86.6       108.4   -20.1%
Equity/Equity ratio     206.0 54.1%     180.5 54.2% 14.1%
Employees (FTE)     2'205       2'062   6.9%

1 Definition according Alternative Performance Measures (APM) see notes.

Interim Report
A PDF version of the Interim Report 2023 of Kardex is available on our website.

Contact for media and investors
Alexandre Müller; investor-relations@kardex.com
Mobile: +41 (0)79 635 64 13

07 March 2024 Publication Annual Report 2023
Conference Call for Media and Analysts
25 April 2024 Annual General Meeting 2024
SIX ConventionPoint, Zurich, Switzerland
30 July 2024 Publication Interim Report 2024
Conference Call for Media and Analysts


Kardex Corporate Profile
Kardex is a global industry partner for intralogistic 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 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 2’200 employees in over 30 countries work for Kardex. Kardex Holding AG is listed on the Swiss SIX Stock Exchange since 1989.

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 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.

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