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 |
||
|
|||||
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 |
||
|
|||||
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 |
||
|
|||||
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.