KONECRANES PLC FINANCIAL STATEMENT RELEASE 2023 FEBRUARY 2, 2024 8:30 am EET
Konecranes Plc's Financial statement release 2023: All-time high sales and comparable EBITA margin in 2023
All-time high sales and comparable EBITA margin in 2023
This release is a summary of Konecranes Plc's Financial statement release 2023. The complete report is attached to this release in pdf format and is also available on Konecranes' website at www.konecranes.com.
The figures presented in this report are unaudited. Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
Konecranes has made changes in reporting its orders received and net working capital. The previous year's figures presented in this report have been restated and are fully comparable with the current year figures.
FOURTH QUARTER HIGHLIGHTS
- Order intake EUR 926.0 million (960.3), -3.6 percent (-1.7 percent on a comparable currency basis), order intake decreased in Port Solutions, remained approximately unchanged in Industrial Equipment and increased in Service
- Service annual agreement base value EUR 318.3 million (306.9), +3.7 percent (+5.3 percent on a comparable currency basis)
- Service order intake EUR 377.9 million (359.6), +5.1 percent (+8.5 percent on a comparable currency basis)
- Order book EUR 3,040.8 million (2,901.7) at the end of December, +4.8 percent (+6.0 percent on a comparable currency basis)
- Sales EUR 1,148.9 million (1,020.9), +12.5 percent (+15.8 percent on a comparable currency basis), sales increased in Service and Port Solutions but decreased in Industrial Equipment
- Comparable EBITA margin 11.7 percent (11.6) and comparable EBITA EUR 133.8 million (118.2); the increase in the comparable EBITA margin was mainly attributable to higher sales volumes and pricing
- Operating profit EUR 121.6 million (103.0), 10.6 percent of sales (10.1), items affecting comparability totaled EUR 4.3 million (8.2), mainly comprising of restructuring costs
- Earnings per share (diluted) EUR 1.21 (0.91)
- Free cash flow EUR 166.8 million (90.8)
FULL YEAR 2023 HIGHLIGHTS
- Order intake EUR 4,161.4 million (4,227.9), -1.6 percent (+0.3 percent on a comparable currency basis)
- Service order intake EUR 1,490.7 million (1,442.5), +3.3 percent (+5.8 percent on a comparable currency basis)
- Sales EUR 3,966.3 million (3,364.8), +17.9 percent (+20.5 percent on a comparable currency basis)
- Comparable EBITA margin 11.4 percent (9.5) and comparable EBITA EUR 450.7 million (318.4); the comparable EBITA margin increased in all three segments
- Operating profit EUR 402.5 million (223.2), 10.1 percent of sales (6.6), items affecting comparability totaled EUR 17.2 million (63.5), mainly comprising of restructuring costs
- Earnings per share (diluted) EUR 3.46 (1.77)
- Free cash flow EUR 511.4 million (24.6)
- Net debt EUR 365.8 million (688.3) and gearing 22.9 percent (48.0)
- The Board of Directors proposes a dividend of EUR 1.35 (1.25) per share for 2023
DEMAND OUTLOOK
Our demand environment within industrial customer segments has remained good and continues on a healthy level.
Global container throughput continues on a high level, and long-term prospects related to global container handling remain good overall.
FINANCIAL GUIDANCE
Konecranes expects net sales to remain approximately on the same level or to increase in 2024 compared to 2023. Konecranes expects the comparable EBITA margin to remain approximately on the same level or to improve in 2024 compared to 2023.
KEY FIGURES
Fourth quarter | January - December | |||||
10-12/ 2023 | 10-12/ 2022 | Change % | 1-12/ 2023 | 1-12/ 2022 | Change % | |
Orders received, MEUR 1 | 926.0 | 960.3 | -3.6 | 4,161.4 | 4,227.9 | -1.6 |
Order book at end of period, MEUR | 3,040.8 | 2,901.7 | 4.8 | |||
Sales total, MEUR | 1,148.9 | 1020.9 | 12.5 | 3,966.3 | 3,364.8 | 17.9 |
Comparable EBITDA, MEUR 2 | 154.9 | 140.2 | 10.5 | 535.0 | 406.1 | 31.8 |
Comparable EBITDA, % 2 | 13.5% | 13.7% | 13.5% | 12.1% | ||
Comparable EBITA, MEUR 2 | 133.8 | 118.2 | 13.2 | 450.7 | 318.4 | 41.5 |
Comparable EBITA, % 2 | 11.7% | 11.6% | 11.4% | 9.5% | ||
Comparable operating profit, MEUR 2 | 125.8 | 111.2 | 13.1 | 419.7 | 286.6 | 46.4 |
Comparable operating margin, % 2 | 11.0% | 10.9% | 10.6% | 8.5% | ||
Operating profit, MEUR | 121.6 | 103.0 | 18.0 | 402.5 | 223.2 | 80.3 |
Operating margin, % | 10.6% | 10.1% | 10.1% | 6.6% | ||
Profit before taxes, MEUR | 124.1 | 99.1 | 25.3 | 367.6 | 190.7 | 92.7 |
Net profit for the period, MEUR | 96.4 | 72.5 | 32.9 | 275.6 | 138.5 | 98.9 |
Earnings per share, basic, EUR | 1.22 | 0.91 | 33.6 | 3.48 | 1.77 | 96.2 |
Earnings per share, diluted, EUR | 1.21 | 0.91 | 32.9 | 3.46 | 1.77 | 96.2 |
Gearing, % | 22.9% | 48.0% | ||||
Net debt / Comparable EBITDA, R12M 2 | 0.7 | 1.7 | ||||
Return on capital employed, % | 16.4% | 9.0% | ||||
Comparable return on capital employed, % 3 | 17.7% | 13.4% | ||||
Free cash flow, MEUR | 166.8 | 90.8 | 511.4 | 24.6 | ||
Average number of personnel during the period | 16,503 | 16,563 | -0.4 | |||
1) Previous year restated due to the change in reporting for including agreement base sales in orders received
2) Excluding items affecting comparability, see also note 11 in the summary financial statements
3) ROCE excluding items affecting comparability, see also note 11 in the summary financial statements
CEO ANDERS SVENSSON:
2023 was a strong year for Konecranes from start to finish. Despite the macro-concerns around us, our order intake remained on the same level as the previous year. Every quarter, our sales and comparable EBITA margin grew year-on-year. Our 2023 sales and comparable EBITA margin were both an all-time high. This is an excellent achievement, and I am proud of the hard work and commitment of our team throughout the year.
Our demand environment remained good in general in Q4, although macro indicators continued to signal weakening market conditions in many regions. Order intake decreased 1.7% year-on-year on a comparable currency basis. Our orderbook was €3.0 billion at the end of December, 6.0% higher than a year ago on a comparable currency basis.
Our delivery capability continued at the same good level as in previous quarters. Group sales exceeded €1.1 billion and were 15.8% higher versus a year ago on a comparable currency basis.
Comparable EBITA margin improved slightly year-on-year and was 11.7%, mainly as a result of the higher sales and continued positive pricing impact. Profitability improved year-on-year in Port Solutions and Industrial Equipment but declined in Service. Cashflow remained strong.
Turning to our Business Segments, Service's order intake increased 8.5% year-on-year in comparable currencies. Sales increased 11.0% year-on-year in comparable currencies. The comparable EBITA margin declined year-on-year to 20.2%, mainly driven by temporarily lower productivity and sales mix. The agreement base value continued to grow and in comparable currencies was 5.3% higher at the end of Q4 versus a year ago.
Industrial Equipment's external orders increased 4.0% in comparable currencies. External sales decreased by 1.4% year-on-year in comparable currencies. However, the comparable EBITA margin increased year-on-year to 6.5%, mainly driven by pricing and our Industrial Service and Equipment optimization program that has progressed well. In full-year 2023, the positive P&L impact of the program was around €11 million in Industrial Equipment, out of which approximately €3 million came in Q4.
In Port Solutions, order intake totaled €304 million, decreasing 15.7% year-on-year in comparable currencies, but increasing from the previous quarter. Sales execution continued to improve, and sales grew 38.5% year-on-year in comparable currencies. Accordingly, comparable EBITA margin improved to 8.0%, mainly due to the higher sales volumes. Port Solutions ended the quarter with an orderbook value of over EUR 1.7 billion.
Looking into 2024, we expect the demand environment within our industrial customers to remain healthy, although market uncertainty is not over. Regarding our port customers, container throughput continues to be on a high level, and long-term prospects related to container handling remain good. Our Port Solutions sales pipeline includes projects of all sizes, but quarterly order intake fluctuation is normal for the business, as the booking of orders depends on the timing of customer decision-making.
We have also given financial guidance for 2024. We expect our net sales and comparable EBITA margin to remain on the same level or to increase in 2024 compared to 2023. Although our sales execution has continued good, supply chains remain fragile.
Two weeks ago, we announced Konecranes' new brand identity, which supports our ambition to become a global leader in material handling solutions. We have a critical role to play in the handling of materials and goods essential for people, while also working for a decarbonized world. Our new brand promise, Konecranes moves what matters, summarizes the significant impact we are making together with our customers and stakeholders, and reflects our commitment to deliver a positive, meaningful change wherever we operate.
Overall, 2023 was strong for Konecranes. On a full-year basis, our order intake remained on the same level as in 2022 despite the increased uncertainty and macro-concerns around us. Our sales were all-time high and grew by 20.5% on a comparable currency basis, as we overcame most of our previous years' supply chain challenges. Our comparable EBITA margin improved to 11.4%, up nearly 2 percentage points from the previous year and an all-time high.
Our strong performance demonstrates that we are doing the right things as a company. We have a clear plan which we continue to execute to reach our financial targets. 2024 marks 30 years for Konecranes as a standalone company, and we will keep working hard to deliver what we have promised - further sales growth and profitability improvement - and move what matters.
ANALYST AND PRESS BRIEFING
A live international webcast and telephone conference for analysts, investors and media will be arranged today 11:30 a.m. EET. The event will be held in English. The financial statement release will be presented by President and CEO Anders Svensson and CFO Teo Ottola. Questions may be presented at the end of the conference. The conference will be recorded, and an on-demand version of the conference will be published on the company's website later during the day.
The webcast can be watched through the following link:
https://konecranes.videosync.fi/2023-q4
To ask questions, the telephone conference can be joined by registering through the following link:
https://palvelu.flik.fi/teleconference/?id=10012085
Phone numbers and the conference ID to access the conference will be provided after the registration. In case you would like to ask a question during the conference, please dial *5 on your telephone keypad to enter the question queue.
Questions can also be presented in writing through the question form, while watching the webcast.
NEXT REPORT
Konecranes Plc will publish its Interim report, January-March 2024 on April 25, 2024.
KONECRANES PLC
Kiira Fröberg
Vice President, Investor Relations
FURTHER INFORMATION
Kiira Fröberg,
Vice President, Investor Relations,
tel. +358 (0) 20 427 2050
IMPORTANT NOTICE
The information in this release contains forward-looking statements, which are information on Konecranes' current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Konecranes' control that could cause Konecranes' actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Konecranes' present and future business strategies and the environment in which it will operate in the future.
Konecranes is a global leader in material handling solutions, serving a broad range of customers across multiple industries. We consistently set the industry benchmark, from everyday improvements to the breakthroughs at moments that matter most, because we know we can always find a safer, more productive and sustainable way. That's why, with around 16,600 professionals in over 50 countries, Konecranes is trusted every day to lift, handle and move what the world needs. In 2023, Group sales totalled EUR 4.0 billion. Konecranes shares are listed on Nasdaq Helsinki (symbol: KCR).
DISTRIBUTION
Nasdaq Helsinki
Major media
www.konecranes.com
