Krones Half-Year Report 2024

Letter from Executive Board

Dear shareholders and friends of Krones,

As expected, Krones’ growth accelerated in the second quarter of 2024 compared to the first quarter (revenue growth of 4.0%). From April to June, revenue increased by 16.7% year on year to €1,309.0 million. This is partly due to the acquisition of Netstal Maschinen AG, whose revenue we have consolidated since 28 March 2024.

However, the revenue increase was mainly due to organic growth, which benefited from increased efficiency and favourable market conditions that Krones can exploit with its innovative range of products and services. Customers continue to be very willing to invest. Krones’ order intake in the second quarter was again strong, at €1.31 billion, and showed growth of 3% on the high prior-year figure. Overall, after the first six months, we can confirm our full-year financial targets for 2024.

Highlights

• Demand for Krones’ products and services remains robust. From April to June 2024, order intake increased by 2.9% to €1,310.2 million, exceeding the already high level of the previous year (€1,272.8 million). The contract value of orders in the first six months of 2024 increased by 0.3% over the strong prior year to €2,792.9 million.
• As expected, Krones’ revenue growth accelerated significantly in the second quarter of 2024 (+16.7%) compared to the first quarter of 2024 (+4.0%). In the first six months of 2024, Krones’ revenue climbed by 10.1% year on year to €2,556.1 million. Revenue growth is there- fore within the guidance range for the full year 2024.
• Due to efficiency gains, the EBITDA margin increased despite high material and labour costs from 9.5% in the previous year to 10.0%, which is within the guidance range for the full year 2024.
• The company significantly increased free cash flow (before M&A activities) to +€127.0 million between January and June (previous year: −€131.2 million).
• Following the very positive trend in the first half year, Krones confirms the guidance for 2024. For the full year, the company expects revenue growth of 9% to 13%, an EBITDA margin of 9.8% to 10.3% and ROCE of 17% to 19%.