Koenig & Bauer Looks Back on Favorable 1H 2023

Koenig & Bauer AG can look back on a favorable first half of 2023 and confirms its guidance for the current year. In a market environment that remains challenging, Koenig & Bauer has succeeded in remaining on its growth trajectory and improving its profitability.

Despite continued inflation and ongoing disruptions along the supply chains, the temporary increase in the cost of materials gradually subsided.

“Our performance in the first half of the year clearly shows that we are headed in the right direction,” said CEO Dr. Andreas Pleßke. “The first quarter of 2023 was already good, but in the second quarter we gained further momentum in terms of profitability. As a result, we were able to report the highest half-year group revenue in the company’s recent history.

“At the same time, it was possible for us to pass on the increased material, personnel and energy costs to a large extent and to improve our profitability. Here, too, we are on track. We are convinced that even in economically challenging times there is strong demand for technologically sophisticated packaging solutions and that we are the first point of contact for existing as well as potential customers.

“The high order backlog testifies to the very good position held by Koenig & Bauer products on the market,” Dr. Pleßke added. “Through the strategic partnerships forged in the first half of the year in banknote printing, packaging printing and sustainable battery cell production, we are strengthening our market position in particularly attractive fields offering potential for the future. We are constantly evolving and are in an ongoing metamorphosis.”

Revenue in the first half of 2023 climbed by 21.3% to €596.4 million (previous year: €491.8 million). Performance in the second quarter was particularly strong, with revenue rising by 24.5% to €315.4 million (previous year: €253.4 million) and thus exceeding the same quarter of the previous year as well as the first quarter of 2023. All segments contributed to this growth, with the Sheetfed and Digital & Webfed segments expanding at particularly dynamic rates.

Gross profit improved by 23.9% to €159.9 million, while the gross margin widened to 26.8%. Earnings before interest and taxes (EBIT) rose by €8.4 million in the first half of the year to €-5.4 million (previous year: €-13.8 million). The improvement in operating earnings over the same period of the previous year is mainly due to the positive overall volume and mix effects and the ability to mostly pass on the higher material, energy and personnel costs through the announced price increases.

The order intake of €552.9 million as of June 30, 2023 (previous year: €692.9 million) was in line with expectations. As of the reporting date, the order backlog was valued at €906.9 million and fell short of the previous year’s figure of €1,007.9 million by 10% as planned due to deliveries.

Revenue in the Digital & Webfed segment climbed by 23.9% to €70.1 million (previous year: €56.6 million) in the first half of 2023, driven by strong demand for the RotaJET digital web printing press and corrugated board presses.

The challenging overall macroeconomic situation with high inflation rates and rising key interest rates persisted in the first six months of the year, as did the high costs of material, energy and personnel. Although some signs of a slight easing are already emerging, overall economic dynamics are likely to soften in the further course of the year.

“The figures for the first half of the year show that we are headed in the right direction with our strategic measures. Even though the “P24x” program has now officially ended and we have achieved the savings targets that we had set, we will continue to initiate possible measures actively in a timely manner to strengthen and expand our position, especially in the product segments that hold particular promise for the future,” said CFO Dr. Stephen Kimmich.

The forecast for 2023 remains unchanged given the favorable business performance in the first half of 2023. Specifically, Koenig & Bauer expects group revenue of €1.3 billion for 2023, accompanied by an EBIT margin of roughly 3%.