Earnings
EBIT and EBITDA
Earnings before interest and tax (EBIT) increased by 13.4 per cent year on year to reach €205.8 million (H1 2015: €181.5 million).
Although there was a volume-related improvement in gross profit of 7.4 per cent, selling expenses, administrative expenses and development costs also increased. Adjusted EBIT excluding non-recurring items and KION acquisition items amounted to €239.4 million (H1 2015: €209.8 million). The adjusted EBIT margin was 9.3 per cent, a year-on-year improvement of 0.6 percentage points (H1 2015: 8.7 per cent). > TABLE 05
EBIT |
|
|
|
|
|
05 |
in € million |
Q2 2016 |
Q2 2015 |
Change |
Q1 – Q2 2016 |
Q1 – Q2 2015 |
Change |
Net income for the period |
64.0 |
52.5 |
21.9% |
97.1 |
94.3 |
2.9% |
Income taxes |
–30.0 |
–24.3 |
–23.3% |
–45.5 |
–43.9 |
–3.6% |
Net financial expenses |
–22.8 |
–22.6 |
–1.0% |
–63.3 |
–43.3 |
–46.2% |
EBIT |
116.8 |
99.4 |
17.5% |
205.8 |
181.5 |
13.4% |
+ Non-recurring items |
17.1 |
10.2 |
68.6% |
20.0 |
14.6 |
36.6% |
+ KION acquisition items |
6.9 |
6.9 |
0.0% |
13.6 |
13.7 |
–0.5% |
Adjusted EBIT |
140.8 |
116.4 |
20.9% |
239.4 |
209.8 |
14.1% |
|
|
|
|
|
|
|
Adjusted EBIT margin |
10.5% |
9.3% |
– |
9.3% |
8.7% |
– |
Earnings before interest, tax, depreciation and amortisation (EBITDA) improved to €412.7 million, compared with €374.5 million in the corresponding period of 2015. Adjusted EBITDA rose to €430.0 million (H1 2015: €388.0 million). This equates to an adjusted EBITDA margin of 16.8 per cent (H1 2015: 16.0 per cent). > TABLE 06
EBITDA |
|
|
|
|
|
06 |
in € million |
Q2 2016 |
Q2 2015 |
Change |
Q1 – Q2 2016 |
Q1 – Q2 2015 |
Change |
EBIT |
116.8 |
99.4 |
17.5% |
205.8 |
181.5 |
13.4% |
Amortisation and depreciation |
106.0 |
97.5 |
8.7% |
207.0 |
193.0 |
7.2% |
EBITDA |
222.8 |
196.9 |
13.2% |
412.7 |
374.5 |
10.2% |
+ Non-recurring items |
15.4 |
9.6 |
60.2% |
17.2 |
13.4 |
28.3% |
+ KION acquisition items |
–0.0 |
0.1 |
<–100% |
0.0 |
0.1 |
–100.0% |
Adjusted EBITDA |
238.2 |
206.6 |
15.3% |
430.0 |
388.0 |
10.8% |
|
|
|
|
|
|
|
Adjusted EBITDA margin |
17.7% |
16.4% |
– |
16.8% |
16.0% |
– |
Key influencing factors for earnings
The cost of sales increased by 5.3 per cent to €1,804.1 million (H1 2015: €1,712.7 million), which was below the rate of growth in revenue. Gross profit improved to €760.4 million (H1 2015: €708.1 million). The gross margin therefore advanced from 29.3 per cent to 29.6 per cent.
Selling expenses grew by 8.2 per cent to €318.8 million in the first half of this year (H1 2015: €294.7 million) as a result of the stepping up of sales activities – including the consolidation of Egemin Automation. Development costs totalled €72.0 million (H1 2015: €70.7 million). At €192.2 million, administrative expenses were higher than in the corresponding prior-year period (H1 2015: €178.1 million) because of consultancy expenses incurred ahead of the planned Dematic acquisition. The ‘other’ item came to €28.4 million (H1 2015: €16.9 million). This included the share of profit (loss) of equity-accounted investments, which amounted to a profit of €9.6 million (H1 2015: profit of €6.4 million). > TABLE 07
(Condensed) income statement |
07 |
|||||
in € million |
Q2 2016 |
Q2 2015 |
Change |
Q1 – Q2 2016 |
Q1 – Q2 2015 |
Change |
Revenue |
1,343.8 |
1,256.0 |
7.0% |
2,564.5 |
2,420.8 |
5.9% |
Cost of sales |
–943.9 |
–889.2 |
–6.2% |
–1,804.1 |
–1,712.7 |
–5.3% |
Gross profit |
399.9 |
366.8 |
9.0% |
760.4 |
708.1 |
7.4% |
Selling expenses |
–161.5 |
–146.2 |
–10.5% |
–318.8 |
–294.7 |
–8.2% |
Research and development costs |
–34.9 |
–36.7 |
4.7% |
–72.0 |
–70.7 |
–1.8% |
Administrative expenses |
–106.2 |
–93.7 |
–13.3% |
–192.2 |
–178.1 |
–7.9% |
Other |
19.5 |
9.2 |
>100% |
28.4 |
16.9 |
68.1% |
Earnings before interest and taxes (EBIT) |
116.8 |
99.4 |
17.5% |
205.8 |
181.5 |
13.4% |
Net financial expenses |
–22.8 |
–22.6 |
–1.0% |
–63.3 |
–43.3 |
–46.2% |
Earnings before taxes |
94.0 |
76.8 |
22.4% |
142.5 |
138.2 |
3.1% |
Income taxes |
–30.0 |
–24.3 |
–23.3% |
–45.5 |
–43.9 |
–3.6% |
Net income for the period |
64.0 |
52.5 |
21.9% |
97.1 |
94.3 |
2.9% |
Net financial income/expenses
There was a significant decline in the balance of financial income and financial expenses, leading to net financial expenses of €63.3 million (H1 2015: net financial expenses of €43.3 million) mainly due to one-off expenses of €25.7 million incurred in February 2016 in connection with the restructuring and optimisation of the Group’s funding.
Income taxes
Income tax expenses amounted to €45.5 million (H1 2015: €43.9 million). Current income taxes came to €31.3 million (H1 2015: €67.6 million). The tax rate was 31.9 per cent, which was up slightly year on year (H1 2015: 31.7 per cent).
Net income for the period
The KION Group’s net income after taxes was €97.1 million (H1 2015: €94.3 million). Diluted and basic earnings per share for the reporting period came to €0.97 (H1 2015: €0.94).