Koenig & Bauer has unveiled the preliminary results of its financial year for the year 2020. With a turnover of 1.029 billion euros, the group announces a significantly higher result than forecast, which was between 900 and 950 million euros. Preliminary consolidated profit before interest and taxes (Ebit) is -68 million euros for the financial year 2020 (-19 million euros with exceptional items). The manufacturer explains the increase in sales and the corresponding effect on Ebit in particular by the new internal directive on the accounting treatment of the Group's sales.
A balance expected in 2021
Based on preliminary figures, Koenig & Bauer recorded an order intake of approximately 975 million euros in the financial year 2020, which is 14.5 percent lower than in 2019. However, this is less than the -21.9 percent decline announced by the German Engineering Federation (VDMA).
Koenig & Bauer reports that order intake in the fourth quarter amounted to 262 million euros, confirming the recovery that began in the second half of 2020. Despite the still limited visibility of the Covid-19 pandemic on Koenig & Bauer's business environment and the travel restrictions currently in place due to the pandemic, the company anticipates a slight growth in business in 2021.
"?Cette projection is based on the assumption that advances in vaccinations that also provide protection against covid-19 virus mutations will lead to a lifting of restrictions on Covid-19?", explains the group.
Against this backdrop, Koenig & Bauer expects slight organic revenue growth of around 4% to 1.070 billion euros in 2021. 1.070 billion in 2021. On the earnings side, it expects to achieve break-even in terms of Ebit in 2021 following the launch of the Performance 2024 programme.
In response to the global economic situation that has deteriorated with the health crisis, Koenig & Bauer unveiled a package of measures at the end of September aimed at achieving annual savings of more than 100 million euros while maintaining the group's development and competitiveness.
After implementation of the measures planned for 2021, Koenig & Bauer expects that a good 60% of the total cost savings will take effect in 2022. Following the completion of the measures planned for 2022 under the efficiency programme, approximately 90% of the total targeted cost savings should be perceptible in 2023.
