Supply Chain Solutions segment
Business performance and order intake
At €1,108.9 million, the value of order intake in the Supply Chain Solutions segment fell short of the strong level achieved in the prior-year period (H1 2018: €1,270.4 million), which had been bolstered by major orders placed in the second quarter of 2018. A substantial increase in orders in Europe made a positive contribution to the overall result. There was also a small positive impact from the stronger US dollar, which pushed up order intake by €39.6 million in the reporting period. > TABLE 09
Key figures – Supply Chain Solutions |
09 |
|||||
in € million |
Q2 2019 |
Q2 2018 |
Change |
Q1 – Q2 2019 |
Q1 – Q2 2018 |
Change |
Order intake |
506.0 |
874.2 |
–42.1% |
1,108.9 |
1,270.4 |
–12.7% |
Total revenue |
642.0 |
578.8 |
10.9% |
1,210.9 |
1,049.5 |
15.4% |
EBITDA |
74.7 |
63.3 |
18.1% |
135.7 |
109.0 |
24.5% |
Adjusted EBITDA |
78.2 |
64.0 |
22.3% |
140.3 |
110.1 |
27.4% |
EBIT |
39.0 |
19.4 |
>100% |
63.9 |
21.3 |
>100% |
Adjusted EBIT |
63.6 |
51.5 |
23.5% |
111.8 |
86.5 |
29.3% |
|
|
|
|
|
|
|
Adjusted EBITDA margin |
12.2% |
11.1% |
– |
11.6% |
10.5% |
– |
Adjusted EBIT margin |
9.9% |
8.9% |
– |
9.2% |
8.2% |
– |
Revenue
Segment revenue went up by 15.4 per cent to €1,210.9 million (H1 2018: €1,049.5 million), primarily because of the progressive fulfilment of the high level of orders on hand from the end of 2018. All sales regions contributed to this revenue increase. Strong growth in Europe was a factor in the rise in revenue generated from long-term projects (business solutions). The service business (customer services) grew by an encouraging 15.7 per cent and overall accounted for 23.4 per cent of the segment’s external revenue (H1 2018: 23.3 per cent). The proportion of revenue generated in North America stood at 65.9 per cent, which was down from 69.7 per cent in the first half of 2018 due to an increase in revenue in Europe.
Earnings
The segment’s adjusted EBIT rose by a significant 29.3 per cent to €111.8 million (H1 2018: €86.5 million) on the back of higher revenue and a disproportionately low increase in selling expenses and administrative expenses. Moreover, project-related personnel capacity had been underutilised in the prior-year period. As a result, the adjusted EBIT margin for the period improved to 9.2 per cent (H1 2018: 8.2 per cent). After taking into account non-recurring items and purchase price allocation effects, EBIT came to €63.9 million (H1 2018: €21.3 million).
Adjusted EBITDA amounted to €140.3 million (H1 2018: €110.1 million); the adjusted EBITDA margin was 11.6 per cent (H1 2018: 10.5 per cent).