Earnings and profitability
EBIT, EBITDA and ROCE
Earnings before interest and tax (EBIT) jumped significantly year on year, rising by €404.9 million to €794.8 million. The figure for 2020 of €389.9 million had been heavily impacted by the coronavirus pandemic. EBIT for 2021 included a good level of positive non-recurring items, which amounted to income of €37.8 million (2020: expense of €65.1 million). The prior-year figure had mainly included components of the capacity and structural program (expense of €45.8 million) and impairment losses on non-current assets. The very satisfying level of orders on hand enabled the KION Group to adjust the capacity program and reverse excess provisions; taking account of the ongoing program costs, there were positive non-recurring items amounting to income of €8.2 million. Plan adjustments affecting defined benefit obligations resulted in further non-recurring items that amounted to income of €32.7 million. At the same time, purchase price allocation effects declined slightly to an expense of €84.8 million (2020: €91.9 million).
The Group’s EBIT adjusted for purchase price allocation effects and non-recurring items (adjusted EBIT) amounted to €841.8 million, which was up substantially (by 53.9 percent) on the figure for 2020 of €546.9 million. The adjusted EBIT margin improved from 6.6 percent in the previous year to 8.2 percent in the reporting year.
in € million |
2021 |
in % of revenue |
2020 |
in % of revenue |
---|---|---|---|---|
EBIT |
794.8 |
7.7% |
389.9 |
4.7% |
Adjustment by functional costs: |
|
|
|
|
+ Cost of sales |
12.6 |
0.1% |
54.9 |
0.7% |
+ Selling expenses and administrative expenses |
39.9 |
0.4% |
84.5 |
1.0% |
+ Research and development costs |
–4.0 |
–0.0% |
2.9 |
0.0% |
+ Other costs |
–1.4 |
–0.0% |
14.7 |
0.2% |
Adjusted EBIT |
841.8 |
8.2% |
546.9 |
6.6% |
adjusted for non-recurring items |
–37.8 |
–0.4% |
65.1 |
0.8% |
adjusted for PPA items |
84.8 |
0.8% |
91.9 |
1.1% |
Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to €1,735.7 million (2020: €1,327.7 million). The Group’s EBITDA adjusted for the positive non-recurring items (adjusted EBITDA) amounted to €1,696.9 million (2020: €1,383.5 million), giving an adjusted EBITDA margin of 16.5 percent (2020: 16.6 percent).
in € million |
2021 |
in % of revenue |
2020 |
in % of revenue |
---|---|---|---|---|
EBITDA |
1,735.7 |
16.9% |
1,327.7 |
15.9% |
Adjustment by functional costs: |
|
|
|
|
+ Cost of sales |
–26.0 |
–0.3% |
14.8 |
0.2% |
+ Selling expenses and administrative expenses |
–6.7 |
–0.1% |
37.1 |
0.4% |
+ Research and development costs |
–4.2 |
–0.0% |
2.7 |
0.0% |
+ Other costs |
–1.9 |
–0.0% |
1.3 |
0.0% |
Adjusted EBITDA |
1,696.9 |
16.5% |
1,383.5 |
16.6% |
adjusted for non-recurring items |
–38.7 |
–0.4% |
55.8 |
0.7% |
adjusted for PPA items |
0.0 |
0.0% |
0.0 |
0.0% |
Adjusted EBITDA for the long-term lease business, which is derived from internal reporting and assumes a minimum rate of return on the capital employed, amounted to €324.3 million (2020: €326.3 million).
Return on capital employed (ROCE), which is the ratio of adjusted EBIT to capital employed, was up sharply year on year at 9.1 percent (December 31, 2020: 6.2 percent). This can be explained by the sharp rise in earnings and a proportionately smaller increase in capital employed at the end of 2021.