Earnings
EBIT and EBITDA
Earnings before interest and tax (EBIT) improved markedly to €210.9 million in the reporting period (Q1 2023: €129.4 million).
EBIT included budgeted purchase price allocation effects amounting to an expense of €22.1 million in the first three months of 2024 (Q1 2023: expense of €25.4 million). Meanwhile, the reversal of provisions for adjustments to personnel capacity resulted in positive non-recurring items totaling €6.3 million (Q1 2023: expense of €1.2 million from non-recurring items).
EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) rose sharply to €226.7 million in the reporting quarter (Q1 2023: €156.0 million). The Group’s adjusted EBIT margin improved year on year from 5.6 percent to 7.9 percent. Picking up where it had left off in 2023 with a strong earnings performance, the Industrial Trucks & Services segment once again achieved an adjusted EBIT margin in double figures, at 11.1 percent (Q1 2023: 8.8 percent). The Supply Chain Solutions segment’s adjusted EBIT margin increased to 2.6 percent (Q1 2023: 0.9 percent).
in € million |
Q1 |
in % of |
Q1 |
in % of |
|---|---|---|---|---|
EBIT |
210.9 |
7.4% |
129.4 |
4.7% |
Adjustment by functional costs: |
|
|
|
|
+ Cost of sales |
3.2 |
0.1% |
9.6 |
0.3% |
+ Selling expenses and administrative expenses |
13.3 |
0.5% |
15.3 |
0.6% |
+ Research and development costs |
0.0 |
0.0% |
0.0 |
0.0% |
+ Other costs |
–0.7 |
–0.0% |
1.6 |
0.1% |
Adjusted EBIT |
226.7 |
7.9% |
156.0 |
5.6% |
adjusted for non-recurring items |
–6.3 |
–0.2% |
1.2 |
0.0% |
adjusted for PPA items |
22.1 |
0.8% |
25.4 |
0.9% |
EBITDA rose to €478.3 million in the first three months of 2024 (Q1 2023: €387.0 million). Adjusted EBITDA increased to €474.3 million (Q1 2023: €389.6 million), The adjusted EBITDA margin for the reporting period stood at 16.6 percent (Q1 2023: 14.0 percent).
in € million |
Q1 |
in % of |
Q1 |
in % of |
|---|---|---|---|---|
EBITDA |
478.3 |
16.7% |
387.0 |
13.9% |
Adjustment by functional costs: |
|
|
|
|
+ Cost of sales |
–6.5 |
–0.2% |
0.9 |
0.0% |
+ Selling expenses and administrative expenses |
0.9 |
0.0% |
3.0 |
0.1% |
+ Research and development costs |
0.0 |
0.0% |
0.0 |
0.0% |
+ Other costs |
1.5 |
0.1% |
–1.3 |
–0.0% |
Adjusted EBITDA |
474.3 |
16.6% |
389.6 |
14.0% |
adjusted for non-recurring items |
–4.0 |
–0.1% |
2.6 |
0.1% |
adjusted for PPA items |
0.0 |
0.0% |
0.0 |
0.0% |
Key influencing factors for earnings
Despite the increase in revenue, the cost of sales decreased to €2,070.4 million in the first three months of 2024 (Q1 2023: €2,137.4 million). The gross margin improved to 27.6 percent as a result (Q1 2023: 23.1 percent). Positive price effects in the Industrial Trucks & Services segment and growth in the high-margin service business of both operating segments also made a significant contribution.
Selling and administrative expenses went up by a total of 11.3 percent compared with the prior-year period. This rise in costs was due not only to an increase in personnel expenses, including variable remuneration components, but also, in particular, to higher IT costs in connection with the strategic, groupwide Business Transformation project and to an intensification of sales activities. Research and development expenditure was up by 14.8 percent as a result of implementation of the KION 2027 strategy in the ‘automation and software’ and ‘sustainability’ fields of action.
The ‘other’ item amounted to income of €5.4 million (Q1 2023: €8.2 million) and mainly included income and expense resulting from currency translation.
The change in the cost of sales and in other functional costs is shown in the following condensed income statement.
in € million |
Q1 |
Q1 |
Change |
|---|---|---|---|
Revenue |
2,859.1 |
2,781.0 |
2.8% |
Cost of sales |
–2,070.4 |
–2,137.4 |
3.1% |
Gross profit |
788.7 |
643.6 |
22.5% |
Selling expenses and administrative expenses |
–520.5 |
–467.7 |
–11.3% |
Research and development costs |
–62.8 |
–54.7 |
–14.8% |
Other |
5.4 |
8.2 |
–33.5% |
Earnings before interest and tax (EBIT) |
210.9 |
129.4 |
62.9% |
Net financial expenses |
–41.2 |
–35.7 |
–15.2% |
Earnings before tax |
169.7 |
93.7 |
81.1% |
Income taxes |
–58.7 |
–20.2 |
< –100% |
Net income |
111.0 |
73.5 |
50.9% |
Net financial expenses
The net financial expenses, representing the balance of financial income and financial expenses, increased to €41.2 million (Q1 2023: €35.7 million). The increase in the level of interest rates compared with the prior-year period was the main reason for this deterioration. However, because net debt was lower on average, the interest expense on financial debt was virtually unchanged on the first quarter of 2023 at €15.0 million (Q1 2023: €14.9 million). By contrast, the higher level of interest rates meant that net interest income/expense from the lease and short-term rental business deteriorated to a net expense of €22.8 million (Q1 2023: net expense of €8.3 million); income of €12.2 million was realized on the interest-rate derivatives used for hedging purposes in the lease business during the reporting period (Q1 2023: income of €5.3 million).
Income taxes
Income tax expenses rose year on year to €58.7 million (Q1 2023: €20.2 million), reflecting the much improved level of earnings. The effective tax rate for the reporting period came to 34.6 percent, whereas the lower figure of 21.5 percent for the first quarter of 2023 had been affected by positive non-recurring items.
Net income for the period
Net income for the first quarter of 2024 amounted to €111.0 million, which was substantially higher than in the corresponding period of the previous year (Q1 2023: €73.5 million). Basic earnings per share attributable to the shareholders of KION GROUP AG came to €0.83 (Q1 2023: €0.55) based on an unchanged weighted average of 131.1 million no-par-value shares (Q1 2023: 131.1 million).