Koenig & Bauer is particularly pleased with its annual figures. For the year 2022, the German printing press manufacturer is posting positive results, even exceeding its own earnings before interest and taxes (EBIT) forecasts.
"Our performance last year shows that we are moving in the right direction for sustainable growth. We were able to post increases in all key performance indicators." says Andreas Pleßke, CEO of Koenig & Bauer.
The three segments that make up the group contributed to the 6.3% increase in revenues to 1,185.7 million euro, the high end of the range estimated in November (1,160 to 1,190 million euro).
EBIT amounted to 22.0 million Euro, exceeding the forecast of 15 to 20 million Euro, and the EBIT margin, estimated at 1.3 to 1.7%, was 1.9% (compared to 0.5 last year).
11.1 million in 2022.
Positive results in all three segments of Koenig & Bauer
The Digital & webfed segment, dedicated to offset and digital web presses and to printing on cardboard and flexible packaging, is growing by 15.2%, significantly reducing its negative contribution to earnings in 2022. 139.8 million (compared with '121.4 million in 2021) and EBIT is up by almost 50%, at -'19.3 million (compared with -'38.5 million).
The Sheetfed segment 672.2 million (2021: 642.4 million), an increase of 4.6 percent. EBIT in this segment amounted to 19.0 million euros (previous year: 24.0 million).
The Special segment 417.1 million in 2022 and EBIT of 23.2 million euros (compared with 390.2 million euros in revenues and 34.9 million euros in EBIT in 2021).
At the end of 2022, the order intake of the Koenig & Bauer Group amounted to ?1,329.3 million, up 3.0% on the already good figure for the previous year.
An efficiency program that is paying off
According to the group, these positive results are due to its efficiency program. Koenig & Bauer has again implemented the program, called P24x, which was adopted in September 2020. Its implementation resulted in savings of around ?92 million by the end of 2022.
This was driven in particular by measures to increase the Group's productivity as well as by capacity adjustments and lower quality assurance expenses. In addition, negotiations with suppliers and the optimized use of cash discounts have made it possible to offset current price increases.
The group also sees additional potential in the area of R&D, such as the start of serial production of machines.
Outlook for 2023: continued growth despite a difficult environment
For 2023, the German press manufacturer estimates that "despite a difficult macroeconomic environment" 1.3 billion, with an EBIT margin of around 3 percent, by 2023. It expects the Digital & Webfed segment to make a very significant contribution to both EBIT growth and revenue.
By 2025, Koenig & Bauer is aiming for sales of 1.5 billion euros and an EBIT margin of 6 to 7 percent. In the medium term, the Koenig & Bauer Group expects to achieve sales of around 1.8 billion euros and an EBIT margin of 8 to 9 percent.
"With our strong position in promising product segments and the continuation of our P24x efficiency program, we are well positioned to meet the challenges ahead." commented CFO Stephen Kimmich, adding that the group had shown with these results that it could achieve growth even in a difficult environment.
