Earnings
EBIT and EBITDA
Earnings before interest and tax (EBIT) went up by 61.1 percent year on year to reach €193.5 million (Q1 2020: €120.2 million). EBIT included budgeted negative effects from purchase price allocations totaling €21.0 million (Q1 2020: €22.1 million). Non-recurring items amounting to an expense of €0.5 million were also recognized in the period under review (Q1 2020: €1.8 million). EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) jumped by 49.2 percent to €215.0 million (Q1 2020: €144.0 million). The adjusted EBIT margin improved to 9.1 percent (Q1 2020: 7.1 percent).
|
in € million |
Q1 2021 |
in % of revenue |
Q1 2020 |
in % of revenue |
|---|---|---|---|---|
|
EBIT |
193.5 |
8.1% |
120.2 |
5.9% |
|
Adjustment by functional costs: |
|
|
|
|
|
+ Cost of sales |
9.5 |
0.4% |
10.0 |
0.5% |
|
+ Selling expenses and administrative expenses |
14.4 |
0.6% |
13.7 |
0.7% |
|
+ Research and development costs |
0.0 |
0.0% |
0.1 |
0.0% |
|
+ Other costs |
–2.5 |
–0.1% |
0.1 |
0.0% |
|
Adjusted EBIT |
215.0 |
9.1% |
144.0 |
7.1% |
|
adjusted for non-recurring items |
0.5 |
0.0% |
1.8 |
0.1% |
|
adjusted for PPA items |
21.0 |
0.9% |
22.1 |
1.1% |
Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to €421.3 million (Q1 2020: €349.2 million). Adjusted EBITDA increased to €421.9 million (Q1 2020: €351.0 million), giving an adjusted EBITDA margin of 17.8 percent (Q1 2020: 17.3 percent).
|
in € million |
Q1 2021 |
in % of revenue |
Q1 2020 |
in % of revenue |
|---|---|---|---|---|
|
EBITDA |
421.3 |
17.7% |
349.2 |
17.2% |
|
Adjustment by functional costs: |
|
|
|
|
|
+ Cost of sales |
0.0 |
0.0% |
0.0 |
0.0% |
|
+ Selling expenses and administrative expenses |
3.0 |
0.1% |
1.7 |
0.1% |
|
+ Research and development costs |
0.0 |
0.0% |
0.0 |
0.0% |
|
+ Other costs |
–2.4 |
–0.1% |
0.1 |
0.0% |
|
Adjusted EBITDA |
421.9 |
17.8% |
351.0 |
17.3% |
|
adjusted for non-recurring items |
0.6 |
0.0% |
1.8 |
0.1% |
|
adjusted for PPA items |
0.0 |
0.0% |
0.0 |
0.0% |
EBITDA for the long-term leasing business, which is derived from internal reporting and assumes a minimum rate of return on the capital employed, amounted to €85.4 million in the reporting period (Q1 2020: €85.1 million).
Key influencing factors for earnings
The cost of sales rose at a faster rate than revenue, increasing by 18.5 percent to €1,759.8 million (Q1 2020: €1,484.5 million). This was due, on the one hand, to the stronger growth of the Supply Chain Solutions segment compared with the Industrial Trucks & Services segment and, on the other, to the sharp rise in the business solutions business within the Supply Chain Solutions segment. The KION Group’s gross margin therefore dropped to 25.9 percent in the quarter under review (Q1 2020: 26.8 percent). Selling expenses fell again slightly, decreasing by 0.5 percent compared with the first quarter of 2020 due to ongoing pandemic-related restrictions. By contrast, the implementation of strategic projects resulted in a 6.3 percent rise in research and development costs. Administrative expenses also went up, increasing by 6.6 percent year on year due, in part, to higher variable remuneration payments. Purchase price allocation effects included in the cost of sales and in other functional costs were lower than in the first three months of 2020. The ‘other’ item includes not only income and expense resulting from currency translation but also line items such as the share of profit (loss) of equity-accounted investments, which amounted to a profit of €4.6 million (Q1 2020: €2.7 million).
The change in the cost of sales and in other functional costs is shown in the following table.
|
in € million |
Q1 2021 |
Q1 2020 |
Change |
|---|---|---|---|
|
Revenue |
2,375.1 |
2,027.7 |
17.1% |
|
Cost of sales |
–1,759.8 |
–1,484.5 |
–18.5% |
|
Gross profit |
615.3 |
543.2 |
13.3% |
|
Selling expenses and administrative expenses |
–387.0 |
–378.9 |
–2.1% |
|
Research and development costs |
–40.5 |
–38.1 |
–6.3% |
|
Other |
5.8 |
–6.0 |
> 100% |
|
Earnings before interest and tax (EBIT) |
193.5 |
120.2 |
61.1% |
|
Net financial expenses |
–10.0 |
–25.7 |
60.9% |
|
Earnings before tax |
183.5 |
94.5 |
94.2% |
|
Income taxes |
–46.5 |
–26.7 |
–74.1% |
|
Net income |
137.0 |
67.8 |
> 100% |
Net financial expenses
The net financial expenses, representing the balance of financial income and financial expenses, improved to €10.0 million (Q1 2020: €25.7 million). One of the reasons for this was the sharp reduction in borrowing over the course of 2020.
Income taxes
Income tax expenses rose significantly year on year to €46.5 million (Q1 2020: €26.7 million), reflecting the level of earnings. The effective tax rate was 25.4 percent (Q1 2020: 28.3 percent).
Net income for the period
Net income for the period came to €137.0 million, which was substantially higher than in the same period of the previous year (Q1 2020: €67.8 million). Basic earnings per share attributable to the shareholders of KION GROUP AG came to €1.04 (Q1 2020: €0.58) based on 131.1 million (Q1 2020: 118.0 million) no-par-value shares.