Supply Chain Solutions segment

Business performance and level of orders

The value of order intake in the Supply Chain Solutions segment fell sharply to €2,243.0 million in the period under review (Q1–Q3 2022: €2,479.6 million). As expected, the market for warehouse automation solutions was relatively muted following several years of robust growth. Consequently, demand from customers weakened. Although market growth remained subdued, the segment secured a large project order in the APAC region during the third quarter of 2023. The improved level of orders on hand in the service business (customer services) was only able to offset the reduction in the volume of orders in the project business to a small extent.

As at September 30, 2023, the order book stood at €3,338.2 million and was thus on a par with the volume at the end of the previous year (December 31, 2022: €3,327.5 million).

Revenue

The total revenue of the Supply Chain Solutions segment came to €2,216.3 million in the reporting period, a drop of 25.4 percent on the figure for the prior-year period (Q1–Q3 2022: €2,970.4 million). This fall in revenue was mainly due to project delays and, in particular, the significant impact on the segment’s revenue in the reporting period resulting from the decline in order intake in the project business (business solutions) from the second half of 2022 onward. Moreover, the projects secured in the reporting period were predominantly of a long-term nature, the revenue from which will be recognized over an extended period. By contrast, revenue in the service business (customer services) rose by 8.5 percent relative to the prior-year period. This meant that the proportion of the segment’s external revenue accounted for by the service business increased to 34.9 percent (Q1–Q3 2022: 23.9 percent).

Earnings

Adjusted EBIT for the Supply Chain Solutions segment was comfortably back into positive territory at €30.7 million in the first three quarters of 2023 (Q1–Q3 2022: minus €32.2 million). The segment’s earnings situation was further stabilized in the third quarter due to the progress that had been made in working through lower-margin orders, for which the higher overall project costs can only be passed on to customers to a limited extent. The slump in revenue did have an adverse impact on earnings, however.

The adjusted EBIT margin for the first nine months of 2023 was 1.4 percent (Q1–Q3 2022: minus 1.1 percent). After taking into account non-recurring items and purchase price allocation effects, EBIT amounted to minus €41.8 million (Q1–Q3 2022: minus €106.4 million).

Adjusted EBITDA increased to €91.4 million (Q1–Q3 2022: €25.3 million). The adjusted EBITDA margin was 4.1 percent (Q1–Q3 2022: 0.9 percent).