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    Quarterly statement Q3 2021
    Quarterly statement Q3 2021

      Highlights and key figures

      Krones confirms full-year targets for 2021 after strong third quarter

      • Revenue growth at Krones accelerated in the third quarter of 2021.
        Third-quarter revenue went up by 23.0% to €922.9 million. In the first nine months, revenue increased by 7.9% to €2,643.0 million.
      • The upward trend in order intake continued in the third quarter. In total between January and September 2021, the volume of orders increased by 38.8% to €3,192.6 million.
      • Krones significantly improved profitability in the first three quarters of 2021. Earnings before interest, taxes, depreciation and amortisation (EBITDA) went up 44.3% to €212.6 million. The EBITDA margin was 8.0% in the reporting period (previous year: 6.0%).
      • Krones generated free cash flow of €107.5 million in the first three quarters of 2021, €165.9 million higher than in the previous year (–€58.4 million).
      • Based on the positive trend in the first three quarters and ongoing stable demand, Krones is sure of being able to meet the upgraded full-year forecast for 2021 published in the preceding quarter.
      Key figures for Q1–Q3 2021
          1 Jan – 30 Sep
      1 Jan – 30 Sep
      Revenue € million 2,643.0 2,449.0 +7.9%
      Order intake € million 3,192.6 2,300.9 +38.8%
      Order backlog at 30 September € million 1,760.9 1,116.6 +57.7%
      EBITDA € million 212.6 147.3 +44.3%
      EBITDA margin % 8.0 6.0 +2.0 PP*
      EBIT € million 113.0 27.5 +310.9%
      EBT € million 118.4 26.7 +343.4%
      EBT margin % 4.5 1.1 +3.4 PP*
      Consolidated net income € million 86.6 17.4 +397.7%
      Earnings per share 2.74 0.55
      Capital expenditure for PP&E and intangible assets € million 73.4 68.5 +€4.9 million
      Free cash flow € million 107.5 –58.4 +€165.9 million
      Net cash at 30 September** € million 283.4 –78.8 +€362.2 million
      Working capital to revenue *** % 26.2 28.3 –2.1 PP*
      Employees at 30 September        
      Worldwide   16,180 16,839 –659
      Germany   9,803 10,408 –605
      Outside Germany   6,377 6,431 –54
      Key figures for Q3 2021
          1 Jul – 30 Sep
      1 Jul – 30 Sep
      Revenue € million 922.9 750.4 +23.0%
      Order intake € million 1,148.3 843.6 +36.1%
      EBITDA € million 74.9 28.8 +160.1%
      EBITDA margin % 8.1 3.8 +4.3 PP*
      EBIT € million 41.4 –5.7
      EBT € million 42.7 –5.1
      EBT margin % 4.6 –0.7 +5.3 PP*
      Consolidated net income € million 29.7 –4.1
      Earnings per share 0.94 –0.13
      * PP = percentage points
      ** Cash and cash equivalents less bank debt
      *** Average of last 4 quarters

      Letter from the Executive Board

      Dear shareholders and friends of Krones,

      Following a good first half of 2021, demand from Krones’ customers stayed high in the third quarter. Our order intake of €1,148.3 million between July and September 2021 was 36.1% higher than in the same period of the previous year. In total, the contract value of orders consequently increased by 38.8% in the first three quarters of 2021. One reason for the strong growth is that the global economy has now recovered from the impacts of the Covid pandemic. In addition, we are benefiting from our broad global footprint. Krones serves customers in their own markets with its innovative products and services worldwide.

      We are naturally pleased about the good orders situation, but the strong demand also presents us with new challenges. The task is to deliver the ordered machines and lines on time in accustomed Krones quality. That is anything but easy given the tight situation on procurement markets and in supply chains. However, Krones today is highly flexible and has a motivated team who will master this challenge, too, in the best possible way in the current 2021 financial year. We nevertheless expect that the uncertainties on the procurement markets will continue or even increase in 2022 and thus present us with further challenges.

      Despite the procurement market difficulties, the financial targets for 2021 are not at risk. We continue to expect full-year revenue growth of 7% to 9% and an EBITDA margin of 7% to 8%. In the first nine months of 2021, Krones generated revenue of €2,643.0 million, which is 7.9% higher than in the previous year. The EBITDA margin improved from 6.0% in the previous year to 8.0%. 

      Not only is the operating business going well in 2021; Krones is also making major progress on strategic issues. The new organisational structure in process technology with the separate brewery business is established and is delivering results. We are also pushing ahead with implementation of our Shaping the Future strategy programme. Krones’ focus here is on sustainability, line expertise and digitalisation. We have recently brought together all of the company’s automation and digitalisation activities in the Krones Ecosystem. In this way, we aim to become even faster at developing new business models for the digital beverage plant that offer measurable added value for customers.

      The same aim applies to all innovations at Krones. We would have very much liked to present highlights from our product portfolio at drinktec in October. Regrettably, the world’s leading trade fair for the beverage and liquid food industry has had to be postponed to 2022 due to the Covid pandemic. We are already looking forward to drinktec 2022 and to many visits from customers there.


      Christoph Klenk

      Report on expected developments

      Krones sure of meeting full-year forecast for 2021 

      Overall, Krones’ markets have so far recovered from the pandemic-related downturn faster than was expected at the beginning of the year. For the fourth quarter of 2021, the company expects demand to stay strong and production capacity utilisation to remain stable. 

      Tight procurement markets present an increasing challenge. Krones, too, cannot permanently escape the problems in global supply chains. However, due to the initiated structural measures and the company’s high degree of flexibility, Krones is sure of being able to meet the upgraded full-year forecast for 2021 published in the preceding quarter. 

      For the Krones Group, the Executive Board expects full-year revenue growth of 7% to 9% in 2021. Krones anticipates an EBITDA margin of 7% to 8%. For the third performance target, working capital to revenue, the guidance likewise remains unchanged at 26% to 27%.

        Guidance for 2021 Actual 9M 2021
      Revenue growth 7 –9% 7.9%
      EBITDA margin 7–8% 8.0%
      Working capital to revenue 26 – 27% 26.2%