Supply Chain Solutions segment
Business performance and order intake
Order intake in the Supply Chain Solutions segment jumped by a substantial 31.9 percent to €3,654.5 million (2019: €2,771.0 million). This sharp rise was due in no small part to new orders, modernization orders, and expansion orders from e-commerce customers in North America and Europe. Both the long-term project business (business solutions) and the service business (customer services) recorded year-on-year increases in order intake. Currency effects reduced order intake by a total of €66.3 million. Thanks to the encouraging level of order intake, particularly in the fourth quarter, and the full order book, project-related capacity utilization will remain at a good level for much of 2021.
in € million |
2020 |
2019 |
Change |
||
|---|---|---|---|---|---|
Order intake |
3,654.5 |
2,771.0 |
31.9% |
||
Total revenue |
2,627.1 |
2,378.8 |
10.4% |
||
Order book1 |
3,071.1 |
2,231.8 |
37.6% |
||
EBITDA |
339.9 |
276.3 |
23.0% |
||
Adjusted EBITDA |
341.1 |
288.9 |
18.0% |
||
EBIT |
176.0 |
129.6 |
35.8% |
||
Adjusted EBIT |
277.5 |
228.1 |
21.6% |
||
|
|
|
|
||
Adjusted EBITDA margin |
13.0% |
12.1% |
– |
||
Adjusted EBIT margin |
10.6% |
9.6% |
– |
||
|
|||||
Revenue
The Supply Chain Solutions segment’s total revenue amounted to €2,627.1 million, exceeding the prior-year figure of €2,378.8 million by 10.4 percent. This included negative currency effects of €44.4 million. Revenue from the segment’s long-term project business (business solutions) increased by 10.9 percent despite temporary delays to projects that predominantly arose in the second quarter due to restrictions on access to customer sites. In addition, revenue from the service business increased by 8.2 percent, mainly thanks to additional modernization and expansion orders. The share of segment revenue generated by the service business stood at 24.6 percent (2019: 25.1 percent).
Earnings
The Supply Chain Solutions segment’s adjusted EBIT amounted to €277.5 million, which was 21.6 percent above the figure for the previous year (2019: €228.1 million). More efficient project execution and sustained growth in the high-margin service business compensated for the increase in selling expenses and administrative expenses aimed at supporting future growth that were incurred in the reporting year. The adjusted EBIT margin rose from 9.6 percent in 2019 to 10.6 percent in the year under review. After taking into account non-recurring items and purchase price allocation effects, EBIT came to €176.0 million (2019: €129.6 million).
Adjusted EBITDA increased to €341.1 million (2019: €288.9 million). The adjusted EBITDA margin was 13.0 percent (2019: 12.1 percent).