Koenig & Bauer has published its results for the year ending December 31, 2023. Despite a persistently difficult global economic environment, the German printing technology manufacturer, which employs 5,500 people, achieved sales of ?1,326.8 million, up 11.9% on the previous year, and earnings before interest and taxes (EBIT) of ?29.9 million, up 35.9%, both in line with its forecasts. The EBIT margin reached 2.3%, compared with 1.9% the previous year.
Increased profitability, despite start-up and follow-up costs in the Digital & Webfed segment, is mainly due to more effective management of additional inflation-induced expenses, as well as better cost management in the third quarter due to the lack of recovery in demand.
At the same time, it has been possible to pass on higher energy, materials and personnel costs to a large extent, while the temporary rise in materials costs has eased.
Order intake stood at 1,287.9 million euros at year-end, slightly below the previous year's historically high figure of 1,329.3 million euros, as forecast.
Strong order intake in Special segment with Banknote Solutions
Order intake in the special segment increased by 37.1% to 538.8 million euros at year-end.
In the fourth quarter alone, order intake totaled 268.1 million euros, boosted by an order in the Banknote Solutions business unit (dedicated to high-security printing) received from the Bureau of Engraving and Printing, a U.S. government agency based in Washington, D.C.
At 606.2 million euros, order intake in the sheetfed segment were lower than the extremely high figure of 813.5 million euros recorded in the previous year, which was marked by post-pandemic catch-up effects and a substantial build-up of inventories by customers and brands.
Visit digital & Webfed segment represented 179.8 million euros in order intake, up 9.9%.
Spotlight plan launched
With the Growth Offensive 2023 strategy adopted in 2018, which aimed to exploit market opportunities in digital printing, corrugated board, board packaging and flexible packaging printing, as well as in the post-press sector, Koenig & Bauer has significantly accelerated its transformation from a printing press manufacturer to a technology company.
"The company is therefore moving in the right direction, even if external and internal factors are leading to increased complexity and higher costs." . This is why the Board of Directors launched the Spotlight program at the end of 2023.
The Spotlight program "prioritizing initiatives and business models that improve results and financial strength, de-prioritizing initiatives that do not have a direct impact on results, and optimizing Group and segment organization and indirect cost structure to make processes even simpler and more user-friendly" explains Andreas Pleßke, Managing Director of Koenig & Bauer.
From April 1, 2024, CFO Stephen Kimmich will also assume responsibility for the special segment, which until now has been handled by Managing Director Andreas Pleßke.
Outlook for 2024: EBIT margin and sales stable
Despite a difficult macroeconomic environment in 2024, Koenig & Bauer expects EBIT margin and sales to remain stable in fiscal 2024.
The German group forecasts operating income of between ?25 and ?40 million and sales of around ?1.3 billion.
However, the Group's EBIT will be burdened by up to 10 million euros due to expenses related to the Drupa trade show, which takes place in Düsseldorf from May 28 to June 7.
