Krones has reported robust financial results for the first nine months of 2024, with revenue increasing by 11.2% year-on-year to €3.87 billion, aligning with its full-year growth forecast of 9% to 13%.
The company recorded an order intake of €1.32 billion in the third quarter, slightly exceeding the previous quarter and remaining close to the levels of 2023. Cumulative order intake for the first nine months totaled €4.12 billion. The order backlog, which reached €4.36 billion by the end of September, reflects a 6.6% increase from the prior year, ensuring production capacity through late 2025.
Demand across regions, including the Middle East, contributed to this growth, with the beverage industry’s investment activity remaining steady despite global economic challenges.
Profitability also improved, with the EBITDA margin rising to 10.1% in the first nine months, compared to 9.5% in the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 17.7% to €391.1 million. In the third quarter alone, EBITDA rose by 21.6% year-on-year to €134.9 million, achieving a margin of 10.2%.
Krones attributed its improved financial performance to stable material availability, enhanced production efficiency, and strong regional demand. Free cash flow (excluding mergers and acquisitions) also showed significant improvement, reaching €145.0 million compared to a negative €166.1 million in 2023.
The acquisition of Netstal Maschinen AG earlier in 2024 bolstered the company’s capabilities in filling and packaging technology, further supporting its growth.
Looking ahead, Krones reaffirmed its 2024 targets, expecting revenue growth of 9% to 13%, an EBITDA margin of 9.8% to 10.3%, and a return on capital employed (ROCE) of 17% to 19%. Despite global uncertainties, including geopolitical risks and supply chain disruptions, the company remains confident in its outlook, with strong order intake from regions like the Middle East playing a vital role.