Earnings
EBIT and EBITDA
Earnings before interest and tax (EBIT) reached €96.6 million, which was 8.5 percent above the same period of the previous year (Q1 2016: €89.0 million). This includes the negative purchase price allocation effects of €46.6 million (Q1 2016: €6.7 million), which, in the quarter under review, were largely attributable to the acquisition of the Dematic Group. EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) was significantly higher than in the prior-year period at €152.9 million (Q1 2016: €98.6 million). The adjusted EBIT margin rose to 8.4 percent (Q1 2016: 8.1 percent). > TABLE 04
EBIT |
|
04 |
|
in € million |
Q1 2017 |
Q1 2016 |
Change |
EBIT |
96.6 |
89.0 |
8.5% |
+ Non-recurring items |
9.7 |
2.9 |
>100% |
+ PPA items |
46.6 |
6.7 |
>100% |
Adjusted EBIT |
152.9 |
98.6 |
55.1% |
Earnings before interest, tax, depreciation and amortisation (EBITDA) reached €253.3 million, compared with €190.0 million in the prior-year period. Adjusted EBITDA rose to €263.0 million (Q1 2016: €191.7 million). This equates to an adjusted EBITDA margin of 14.5 percent (Q1 2016: 15.7 percent). > TABLE 05
EBITDA |
|
05 |
|
in € million |
Q1 2017 |
Q1 2016 |
Change |
EBITDA |
253.3 |
190.0 |
33.3% |
+ Non-recurring items |
9.7 |
1.8 |
>100% |
+ PPA items |
0.0 |
0.0 |
–100.0% |
Adjusted EBITDA |
263.0 |
191.7 |
37.2% |
Key influencing factors for earnings
The cost of sales advanced to €1,354.6 million (Q1 2016: €872.5 million). This year-on-year rise was mainly attributable to the Supply Chain Solutions segment and the acquisition of Dematic. Higher material prices also impacted on the cost of sales. As a result, the gross margin was down year on year at 25.2 percent. However, there was a disproportionately small increase in selling expenses, development costs and administrative expenses.
The change in the cost of sales and in other functional costs is shown in > TABLE 06.
(Condensed) income statement |
|
06 |
|
in € million |
Q1 2017 |
Q1 2016 |
Change |
Revenue |
1,811.4 |
1,220.6 |
48.4% |
Cost of sales |
–1,354.6 |
–872.5 |
–55.3% |
Gross profit |
456.8 |
348.2 |
31.2% |
Selling expenses and administrative expenses |
–331.1 |
–243.3 |
–36.1% |
Research and development costs |
–34.4 |
–24.7 |
–38.8% |
Other |
5.2 |
8.8 |
–41.5% |
Earnings before interest and taxes (EBIT) |
96.6 |
89.0 |
8.5% |
Net financial expenses |
–35.8 |
–40.4 |
11.4% |
Earnings before taxes |
60.7 |
48.5 |
25.1% |
Income taxes |
–18.7 |
–15.5 |
–20.7% |
Net income for the period |
42.0 |
33.0 |
27.2% |
Net financial income / expenses
The net financial expenses representing the balance of financial income and financial expenses came to €35.8 million in the first three months of this year (Q1 2016: €40.4 million). In the first quarter of last year, net financial expenses had included one-off financial expenses of €25.7 million incurred in connection with optimisation of the financing structure.
Income taxes
Income tax expenses amounted to €18.7 million (Q1 2016: €15.5 million). The tax rate was 30.8 percent (Q1 2016: 31.9 percent).
Net income for the period
Net income amounted to €42.0 million, up by 27.2 percent on the figure of €33.0 million in the first quarter of 2016. Earnings per share attributable to the shareholders of KION GROUP AG came to €0.39 (Q1 2016: €0.33) based on 108.6 million (Q1 2016: 98.7 million) no-par-value shares.