Overall assessment of the economic situation
The first half of 2024 was encouraging for the KION Group. Consolidated revenue amounted to €5,736.2 million, which was 2.1 percent more than in the prior-year period (H1 2023: €5,617.4 million). The enhanced gross margin in both operating segments meant that profitability was also higher year on year. Adjusted EBIT improved by 28.3 percent to €447.0 million (H1 2023: €348.3 million), which put the adjusted EBIT margin at 7.8 percent (H1 2023: 6.2 percent).
Total revenue in the Industrial Trucks & Services (ITS) segment was up by 4.1 percent to €4,306.3 million in the first half of 2024. Alongside a rise in the volume of unit sales, the increase in revenue was driven mainly by the ability to command higher prices, particularly in the EMEA region, and by the growth of the service business across all of the main service categories. Coupled with the continued stability of material prices, this helped the segment to record a much higher gross margin and an adjusted EBIT margin that was once again in double digits. The value of order intake in the new truck business was lower than in the first half of 2023, whereas the service business increased slightly overall.
The Supply Chain Solutions (SCS) segment generated revenue totaling €1,451.3 million during the reporting period, which was down by 3.1 percent year on year due to the decline in order intake during preceding quarters. By contrast, revenue in the service business (customer services) grew strongly in the first six months of 2024. Despite the decline in revenue, the segment was able to improve its earnings and margins overall compared with the first half of 2023 thanks to improved project implementation, the efficiency measures carried out, and, above all, the growth in the higher-margin service business. The segment’s order situation was again affected by customers’ ongoing reluctance to invest.
Net income for the first half of 2024 improved to €181.7 million (H1 2023: €146.3 million). Basic earnings per share thus amounted to €1.35 (H1 2023: €1.09).
Free cash flow was well into positive territory at €202.2 million in the first six months of 2024 (H1 2023: €228.8 million), primarily thanks to the high level of operating profit.
Net debt rose by €68.0 million compared with the end of 2023 to stand at €1,278.6 million and thus amounted to 0.7 times adjusted EBITDA on an annualized basis.