Krones has published its 2020 Annual Report showing a 16.1% drop in revenue amid a year heavily affected by the coronavirus pandemic.

The manufacturer of filling and packaging technology is cautiously optimistic for 2021, though.

The report states that its financial year 2020 was heavily affected by Covid-19. Revenue fell 16.1% year-on-year, from €3,958.9 million to €3,322.7 million. Order intake was down 19.0%, from €4,083.5 million in the previous year to €3,307.0 million. 

There were positivities, though, after a weak first half year in 2020, the contract value of orders picked up significantly in the third and especially the fourth quarter. 

Profitability in both segments affected by corona and one-off effects

Earnings before interest, taxes, depreciation and amortisation (EBITDA) went down from €227.3 million in the previous year to €133.2 million in 2020. The EBITDA margin was 4.0% (previous year: 5.7%).

The EBITDA was impacted in 2020 by around €72 million in expenses for personnel-related measures. Excluding these expenses for capacity adjustment, the EBITDA margin was 6.2% (previous year: 6.6%). 

Krones retains very robust financial and capital structure 

Krones generated free cash flow of €221.3 million in 2020 (previous year: €–94.4 million). Net cash and cash equivalents, meaning cash and cash equivalents less bank debt, increased to €184.9 million (previous year: €38.1 million).

For 2020, Krones will pay the statutory minimum dividend and distribute €0.06 per share

Optimism for financial year 2021 

For financial year 2021, due to ongoing uncertainty about the path of the Covid-19 pandemic, Krones is forecasting revenue growth of 2.5% to 3.5%. Based on the slight recovery in revenue and the savings from the structural measures, the Executive Board expects profitability to be better than in 2020. 

Krones anticipates an EBITDA margin of 6.5% to 7.5% in 2021. The third target, the working capital to revenue ratio, is expected to improve to between 26% and 27%.  

Krones has published the Annual Report 2020 online at:
https://www.krones.com/en/company/investor-relations/krones-group-annual-report-2020.php

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