Media information - Half Year Results 2015
Zurich, 13 August 2015
Strong development of the Kardex Group continues in 2015
The financial year 2015 has started well, following on from the good second half of 2014. Kardex Remstar is continuing on its dynamic growth path and Kardex Mlog is recording profitable growth for the first time.
Significant currency effects
The half-year figures are influenced by significant currency effects. The US dollar and the Swiss franc have both strengthened substantially against the euro and therefore positively affected the consolidated turnover expressed in euros. However, the aforementioned effects also led to currency-related cost increases.
Double-digit growth and improved operating result
At EUR 180.5 million, the bookings reported by the Kardex Group were substantially higher than in the same period in the previous year. This equates to an increase of EUR 27.5 million or 18.0%. Currency adjusted, this increase still amounts to 13.4%. The generated revenue of EUR 165.1 million was 12.2% higher than in the previous year, currency adjusted 7.3% higher. The order backlog has increased in both divisions and, at EUR 128.2 million, is considerably above the level of the previous year (EUR 110.0 million).
In the course of this turnover growth, profitability rose over-proportionately despite additional costs. The gross margin increased to 33.7% (33.2%). The operative costs grew by 10.1%, but approximately one third of which can be attributed to currency shifts. The operating result rose by 26.4% to EUR 15.3 million (EUR 12.1 million), which equates to a strong EBIT margin of 9.3% (8.2%). As a result of the improved financial result, the currency gains and a higher but still relatively low tax rate, a half-year profit of EUR 12.3 million was generated, up 30% on the previous year. The return on capital employed (ROCE) reached 38.8% (31.1%). Since the start of the year, the Group headcount increased by 1.3% or 19 full-time equivalents to 1 499 employees.
Positive development in both divisions
The Kardex Remstar division is continuing to experience dynamic growth. Bookings and revenue were up by 11.9% and 11.2% respectively, or currency adjusted 6.5% and 5.1% respectively. How-ever, the higher volume was also accompanied by higher salary costs and strategic increases in marketing and sales costs, whereby around one third of the cost increase is currency related. Furthermore, increased investments of 2.9 percent of revenue were again made in Research and Development. Despite this, the operating result improved by 17.2% or EUR 2.2 million to EUR 15.0 million against the previous year, leading to an EBIT margin of 11.6% (11.0%).
The repositioning of the Kardex Mlog division is increasingly paying dividends. This is evident, among other things, in the strong increase in bookings, which rose by 55.2% or EUR 12.1 million to EUR 34.0 million compared to the relatively weak previous-year period. The generated revenue rose by 15.7%. The revenue mix, in particular, moved in the desired direction. Revenues generated with refurbishment projects increased by nearly 160%, newly accounting for one quarter of the total revenue. The efforts to further expand the components business are also increasingly bearing fruit. The operating result rose by more than one million to EUR 1.5 million, hitting the targeted EBIT margin range of 4% to 6% with 4.2% for the first time since being acquired by the Kardex Group. The Kardex Mlog division is not subject to substantial foreign currency effects.
Sound balance sheet
The Kardex Group balance sheet continues to be free from debts and potential depreciation risks due to goodwill or capitalised tax loss carry-forwards. The equity ratio remains at a solid 56.8% (31/12/2014: 59.4%). Thanks to the high free cash flow of EUR 22.1 million, the cash holdings rose to EUR 97.1 million (31/12/2014: +EUR 12 million). This occurred despite the increase in the pay-out ratio and the resultant dividend of EUR 12.1 million paid to shareholders in the first half of 2015. These financial reserves provide the flexibility required to avail of strategic opportunities to further strengthen our market position. The shareholders also benefitted from a CHF 5 million reduction in the nominal value, which was paid out at the start of July 2015.
Cautiously optimistic outlook
The Kardex Group continues to expect a long-term growing need for intra-logistics solutions and wants to exploit the opportunities available on the market. Despite the economic outlook being difficult to predict, the Board of Directors and Executive Committee are confident for the remainder of the year.
Today, 13 August 2015 at 10.00 a.m. (CET), an analyst and media conference call will be held with Executive Director Felix Thöni, Head of Finance and Controlling, Thomas Reist as well as Investor Relations Contact Officer Edwin van der Geest to discuss the half-year results. The corresponding presentation is available on http://www.kardex.com/index.php?id=2186&no_cache=1&L=0.
Please dial in approx. 3 minutes prior to the conference and kindly hold the presentation ready.
To take part, dial: +41 44 800 9658
The Interim Report is available on http://www.kardex.com/index.php?id=2182&no_cache=1&L=0, on our website section Investor Relations/Financial Reports/Interim Report.
|Contact for media and investors:|| |
|Edwin van der Geest , email@example.com|| |
|Tel. +41 44 419 44 79 / Tel. +41 79 330 55 22|| |
|10 March 2016||Publication Annual Report 2015|
Media and Analysts Conference
SIX Swiss Exchange, Zurich, Switzerland
|21 April 2016||Annual General Meeting |
| ||SIX Swiss Exchange, Zurich, Switzerland|
|11 August 2016||Publication Interim Report 2016|
Conference Call for Media and Analysts
Key figures (EUR millions)
|1.1. - 30.6.|| ||2015|| ||2014||+/-%|
|Order backlog (30.6.)||128.2||77.6%||110.0||74.7%||16.5%|
|Operating result (EBIT)||15.3||9.3%||12.1||8.2%||26.4%|
|Result for the period||12.3||7.5%||9.5||6.5%||29.5%|
|Earnings per share (EUR)||1.59|| ||1.22|| ||29.5%|
|Net cash flow from operating activities||23.8|| ||10.9|| ||118.3%|
|ROCE||38.8%|| ||31.1%|| ||24.8%|
| || || || || || |
| ||30.6.2015|| ||31.12.2014|| ||+/- %|
|Net working capital||54.0|| ||56.9|| ||-5.1%|
|Net cash||97.1|| ||85.1|| ||14.1%|
|Employees (FTE)||1'499|| ||1'480|| ||1.3%|
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 life cycle of a product or solution. This begins with the assessment of customer requirements and continues through planning, realization and maintenance of customer-specific systems. It ensures a high level of availability combined with low total cost of ownership and operation. Around 1 500 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.