Earnings

EBIT and EBITDA

Earnings before interest and tax (EBIT) reached €125.8 million, which was €30.5 million higher than in the same period of the previous year (Q1 2017: €95.3 million). This increase was partly due to the negative purchase price allocation effects of €46.6 million included in the prior year, compared with just €33.0 million in the first quarter of 2018. Despite an increase in material and wage costs, EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) rose by 4.2 per cent on the prior-year period to €157.9 million (Q1 2017: €151.6 million). The adjusted EBIT margin was also higher than in the previous year, having risen by 0.2 percentage points to 8.6 per cent (Q1 2017: 8.4 per cent). > TABLE 04

EBIT

04

in € million

Q1 2018

Q1 2017*

Change

*

Key figures for 2017 were restated due to the initial application of IFRS 15 and IFRS 16

EBIT

125.8

95.3

32.0%

+ Non-recurring items

–0.9

9.7

<–100%

+ PPA items

33.0

46.6

–29.1%

Adjusted EBIT

157.9

151.6

4.2%

Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €341.7 million, compared with €312.3 million in the prior-year period. Adjusted EBITDA rose to €340.9 million (Q1 2017: €322.0 million). This equates to an adjusted EBITDA margin of 18.5 per cent (Q1 2017: 17.9 per cent). > TABLE 05

EBITDA

05

in € million

Q1 2018

Q1 2017*

Change

*

Key figures for 2017 were restated due to the initial application of IFRS 15 and IFRS 16

EBITDA

341.7

312.3

9.4%

+ Non-recurring items

–0.9

9.7

<–100%

+ PPA items

0.1

0.0

Adjusted EBITDA

340.9

322.0

5.8%

Key influencing factors for earnings

Revenue grew at a faster rate than the cost of sales, which saw only a modest rise of 0.4 per cent to €1,352.1 million (Q1 2017: €1,346.5 million). This resulted in the gross margin rising from 25.2 per cent in the first quarter of 2017 to 26.6 per cent. Currency effects, including from the US dollar, had a significant negative impact, affecting overall revenue and earnings in the period under review.

The change in the cost of sales and in other functional costs is shown in > TABLE 06.

(Condensed) income statement

06

in € million

Q1 2018

Q1 2017*

Change

*

(Condensed) income statement for 2017 was restated due to the initial application of IFRS 15 and IFRS 16

Revenue

1,843.3

1,801.0

2.4%

Cost of sales

–1,352.1

–1,346.5

–0.4%

Gross profit

491.2

454.5

8.1%

Selling expenses and administrative expenses

–337.5

–329.8

–2.3%

Research and development costs

–34.9

–34.4

–1.6%

Other

7.0

5.0

39.2%

Earnings before interest and taxes (EBIT)

125.8

95.3

32.0%

Net financial expenses

–28.8

–38.3

24.7%

Earnings before taxes

97.1

57.1

70.0%

Income taxes

–28.6

–17.5

–63.2%

Net income for the period

68.4

39.5

73.1%

Net financial income / expenses

The net financial expenses representing the balance of financial income and financial expenses came to €28.8 million in the first three months of 2018 (Q1 2017: €38.3 million).

Income taxes

Income tax expenses amounted to €28.6 million (Q1 2017: €17.5 million). This resulted in a tax rate of 29.5 per cent (Q1 2017: 30.7 per cent).

Net income for the period

At €68.4 million, net income was significantly higher than the prior-year figure (Q1 2017: €39.5 million). Earnings per share attributable to the shareholders of KION GROUP AG came to €0.58 (Q1 2017: €0.36) based on 117.9 million (Q1 2017: 108.6 million) no-par-value shares.