Media information - Half Year Results 2018

Zurich, 2 August 2018

 

Kardex posts strong result for first half of year

Kardex Group performed well again in the first half of 2018. Robust market conditions and the Group's solid position in its markets supported a continued strong bookings performance. Despite increased bottlenecks in the supply chain, which led to longer order lead times, accelerated net revenues and profit increases have been achieved. As indicated before, Kardex Remstar started to make selected investments to increase capacity.

Kardex Group's bookings of EUR 246.0 million were up 17.6% compared to the same period in the previous year. The Group's net revenues in the first half of the year amounted to EUR 195.1 million, a growth of 9.2% (4.8%). In addition to the strong growth in new business, life cycle services net revenues also continued to increase - it once again accounted for a very good revenue share of 29.1% (29.2%) within the targeted range. The order backlog increased by 32.0% to
EUR 222.1 million by the end of the period. Compared to the start of the year, the number of employees in the Group increased by 3.5% to 1 711 full-time equivalents.

Further growth in EBIT margin

Gross profit at Group level increased in absolute numbers by 8.4% to EUR 69.7 million, but higher procurement prices, salaries and slightly lower net revenues margins led to a slightly reduced gross profit margin of 35.7% (36.0%). Operating costs, on the other hand, increased only under proportionally despite sustainably high marketing and development efforts, resulting in a positive EBIT of EUR 23.6 million and an EBIT margin of 12.1% (11.2%). With a stable tax rate net profit increased by 21.4% to EUR 17.0 million (EUR 14.0 million). This represents a ROCE of 51.4% (48.4%).

Record bookings for Kardex Remstar

Kardex Remstar reported growing demand in almost all markets. In Europe, Asia and North America, bookings saw a double-digit increase as a result of investment into the sales methodology in recent years and the continued positive market environment. Activities in the Middle East and Africa remain at a low level due to political and economic uncertainty in these regions. The go-to-market activities in South America which started in 2017 are developing according to the expectations. Total bookings increased by 19.9% to EUR 196.8 million.

Net revenues of Kardex Remstar increased by 12.7% to EUR 158.8 million in the first half of the year. Despite the strong increase in new business, the share of life cycle services still accounted for a solid 30.5% (31.7%). The operating result (EBIT) of EUR 23.0 million is 16.8% above the previous year period, showing an EBIT margin of 14.5% (14.0%).

Kardex Remstar reports a generally very high capacity utilization of the supply chain that in turn leads to extended delivery times, which are partially amplified by bottlenecks of key suppliers. Customer related capacity issues are increasingly contributing to project delays. Recruiting of talent presents another ongoing challenge for the entire organization. Targeted investments in the manufacturing plants will step-by-step lead to increased capacities.

The order backlog of EUR 160.1 million (EUR 113.7 million) at the end of the period results in an extended visibility for net revenues development in the second half of the year.

Good development of Kardex Mlog

Kardex Mlog's business was in line with expectations in a positive market environment but with a similar project realization pattern. Bookings increased by 9.8% to EUR 49.4 million; net revenues of EUR 36.3 million were recorded, a decrease of 4.0% compared to the previous year period. This decrease only reflects a temporary snapshot as several projects will only be billed at the beginning of the second half of the year.

EBIT increased by 20.0% to EUR 1.8 million with an EBIT margin of 5.0% (4.0%). The higher margin resulted primarily from a significantly higher life cycle services revenue share of 46.8% (33.9%) compared to the same period in the previous year. Kardex Mlog continues to make targeted investments in sales and marketing which results in slightly increased operating costs. The order backlog is up by 13.5% compared to previous year's level and forms a good basis for the second half of the year.

Continuously strong balance sheet and high free cash flow

Kardex Group's balance sheet remains solid and the balance sheet total at the end of the period is EUR 263.7 million (December 31, 2018: EUR 240.2 million). The company has no debts, a net cash position of EUR 130.7 million and achieved an equity ratio of 59.1% (57.9%). It needs to be mentioned that the nominal share value reduction of CHF 3.60/share (CHF 27.8 million) occurred after the balance sheet date on July 3, 2018.

With EUR 15.6 million, the free cash flow generated was slightly lower than in the same period in the previous year (EUR 19.1 million) due to increased investment activities and higher accounts receivables position.

Outlook

There are currently no signs of a change in the current market environment and trends. The Board of Directors and the Group Management are confident about the rest of the financial year. The divisions have full order books and will continue to benefit from their strong position in the growing intralogistics market. Emerging opportunities that could systematically strengthen the Group are examined on an ongoing basis. From today's perspective, the good business performance will continue in the second half of the year.

 

Today, 2 August 2018 at 03.00 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.

Please dial in approx. 5 minutes prior to the conference and kindly hold the presentation ready.
To take part, dial: +41 (0)44 580 72 69
Conference-ID: 2462283

Alternatively, you can also participate via audio webcast on https://webcasts.eqs.com/kardex20180802. Please note that questions can only be placed via the conference call. Please log in approx. 5 minutes prior to the audio webcast.

 

Interim Report

The Interim Report is available on our website at
http://www.kardex.com/nc/en/investor-relations/financial-reports/interim-report.html.

 

Contact:

Edwin van der Geest, investor-relations@kardex.com
Tel. +41 (0)44 419 44 79 / Tel. +41 (0)79 330 55 22

 

 

Agenda
4 March 2019	Publication Annual Report 2018 Conference Call for Media and Analysts
11 April 2019	Annual General Meeting SIX Swiss Exchange, Zurich, Schweiz
30 July 2019	Publication Interim Report 2019 Conference Call for Media and Analysts

 

 

Key Figures

EUR millions

1.1.-30.6.	2018		2017		+/-%
Bookings	246.0	126.1%	209.1	117.1%	17.6%
Order backlog (30.6.)	222.1	113.8%	168.3	94.2%	32.0%
Net revenues	195.1	100.0%	178.6	100.0%	9.2%
Gross Profit	69.7	35.7%	64.3	36.0%	8.4%
OPEX	46.1	23.6%	44.3	24.8%	4.1%
EBITDA	26.4	13.5%	22.5	12.6%	17.3%
Operating result (EBIT)	23.6	12.1%	20.0	11.2%	18.0%
Result for the period (net profit)	17.0	8.7%	14.0	7.8%	21.4%
Net cash flow from operating activities	19.4		23.8		-18.5%
Free cash flow	15.6		19.1		-18.3%
ROCE	51.4%		48.4%		6.2%
	30.6.2018		31.12.2017		+/-%
Net working capital	62.0		64.6		-4.0%
Net cash	130.7		114.9		13.8%
Equity/Equity ratio	155.7	59.1%	139.0	57.9%	12.0%
Employees (FTE)	1 711		1 653		3.5%

 

 

Kardex Group - Corporate Profile

The Kardex Group 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. Over 1 700 employees in over 30 countries work for the Kardex Group.
 

Disclaimer

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.

 

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