K?nig & Bauer is off to a flying start in 2023, with revenue growth in all segments. "We achieved the highest first-quarter sales in the company's recent history" andreas Pleßke, Managing Director of K?nig & Bauer, is pleased to report on the financial results for the first quarter of 2023. He points out that the German printing press manufacturer has continued to specialize in the specialized, high-margin target markets of the packaging sector, and "it is now beginning to bear fruit" .
In the first quarter of 2023, growth in all segments led to a 17.9% increase in Group sales to 281 million euros (compared with 238 million for the same period in 2022). K?nig & Bauer also improved its operating profitability: earnings before interest and taxes (EBIT) rose by 62.4% to - 3.2 million euros (vs. - 8.5 million). The EBIT margin was -1.1% (vs. -3.6% in Q1 2022).
At March 31, 2023, order intake stood at 301.2 million euros, in line with expectations.
Particularly dynamic performance in sheetfed, web and digital divisions
Sheetfed and Digital & Webfed segments post strong performance "particularly dynamic" .
In the Sheetfed segment, sales rose by 23.5% to 157.3 million euros (versus 127 million). EBIT came to -0.7 million euros, compared with -3.6 million euros in Q1 2022.
In the Digital & Webfed segment, sales rose by 26.8% to 35.5 million euros (versus 28.0 million euros), driven by strong demand for the RotaJET digital roller printing system. The segment significantly reduced its negative contribution to earnings, generating EBIT of -3.1 million euros versus -6.1 million euros the previous year.
"Our RotaJET has met with a good response in all end markets. Customer demand is huge in the beverage carton and book printing sectors. New business models are being created in collaboration with our customers." emphasizes the general manager.
In the Special segment, first-quarter 2023 sales rose by 6.4% to 97.1 million euros (previous year: 91.3 million euros). EBIT rose from -0.7 million euros to 0.9 million euros at March 31, 2023.
Demand in the Banknote Solutions (banknote and security printing), MetalPrint (metal packaging) and Kammann (direct decoration of glass and plastic hollow bodies) divisions is showing a positive trend.
Higher material, energy and personnel costs (around 6.5 million euros) were almost offset by price increases (around 6.0 million euros).
A positive outlook for 2023
"Our first-quarter results bolster our outlook for fiscal 2023. Despite economic headwinds, we were able to grow in promising product segments thanks to our solid position. We have demonstrated our ability to react quickly to market upheavals."
K?nig & Bauer expects Group sales of ?1.3 billion and an EBIT margin of around 3% for fiscal 2023. Digital & Webfed segment "will probably make a disproportionate contribution" and sales growth.
In the medium term, K?nig & Bauer anticipates annual sales of around 1.8 billion euros and an EBIT margin of between 8 and 9%, with sales of 1.5 billion euros and an EBIT margin of between 6 and 7% by 2025.
