Krones AG Reports Strong Q1 2024 Performance, Confirms Full-Year Guidance

Krones AG, a global leader in the manufacturing of filling and packaging technology, reported a strong performance in the first quarter of 2024. The company recorded a contract value of orders totaling €1,482.7 million, slightly below the previous year but a 17.4% increase compared to Q4 2023. This indicates a robust demand in the market, with order backlog rising by 15.3% year-over-year to €4,357.9 million.

Revenue for the period was up by 4.0% to €1,247.1 million, demonstrating full alignment with Krones' growth targets, despite having fewer working days and only consolidating revenues from the recently acquired Netstal Maschinen AG since 28 March. Profitability also saw improvement, with EBITDA margin growing to 10.1% up from 9.6% in the previous year. Krones cited increased efficiency and effective price strategies to manage rising material costs as drivers of this growth.

Additionally, free cash flow before mergers and acquisitions showed significant improvement, standing at +€184.2 million, turning around from a negative position the previous year. The company confirmed its 2024 full-year guidance expecting revenue growth between 9% to 13%, an EBITDA margin of 9.8% to 10.3%, and a return on capital employed of 17% to 19%. These targets incorporate the financial impacts of acquiring Netstal Maschinen AG.