Würzburg (pta063/25.02.2021/20:10) - Würzburg, 25 February 2021 - Koenig & Bauer AG, Würzburg ("Koenig & Bauer", WKN: 719 350 / ISIN: DE0007193500) announces that on the basis of its preliminary and as yet unaudited figures it achieved group revenue of €1,029m and preliminary consolidated earnings before interest and taxes (EBIT) of -€68m in the 2020 financial year. Adjusted for special items, preliminary consolidated EBIT stands at -€19m.
This means that Group revenue is significantly above the forecast issued for the 2020 financial year, which had indicated a figure of between €900 and 950m. Adjusted EBIT was also better than the forecast negative EBIT before special items of a figure in the mid-double-digit millions.
The reason for the higher revenue and the corresponding effect on EBIT is the adjustment to the group’s internal revenue recognition policy. In the course of preparing the consolidated financial statements, the company decided, after consultation with its new auditors, to retrospectively apply the group’s revised revenue recognition policy, which had previously been announced on 28 September 2020. The change also applies retroactively to the previous year’s figures, with the result that revenue from earlier periods, including the corresponding EBIT effects, are shifted into the future.
In addition to the aforementioned positive effect from the changes to revenue recognition (+€8m), reported consolidated EBIT for the 2020 financial year includes other non-recurring effects that have already been communicated in the amount of -€49m.
Slight organic revenue growth and balanced EBIT expected for 2021
On the basis of its preliminary figures, Koenig & Bauer registered a full-year order intake of around €975m in the 2020 financial year, 14.5% lower than in 2019 (€1,141m). The decline was thus less pronounced than the 21.9% drop in order intake for printing presses published by industry association VDMA.
Despite the still limited forward visibility with respect to the Covid-19 pandemic on the Koenig & Bauer Group’s business environment and the travel restrictions currently in place due to the pandemic, the company anticipates slight growth in business in 2021. This projection is based on the assumption that progress made in vaccinations that also provide protection from the covid-19 virus mutations will lead to a lifting of Covid-19 restrictions. The lower decline in order intake in 2020 compared to the industry as a whole is seen as a solid starting point for the new financial year under the prevailing Covid-19 conditions.
Against this backdrop, Koenig & Bauer projects slight organic revenue growth of around 4% to €1,070m in 2021. On the earnings side, it expects to break even at the EBIT level in 2021 following the successful launch of the P24x efficiency programme and the planned savings effects. That said, the reimposed travel restrictions – not least of all due to the emergence of mutations of the Covid-19 virus – will continue to exert pressure in the first quarter of 2021.
As forecast, the implementation of the P24x programme will leave traces on free cash flow in 2021, resulting in a negative free cash flow in the mid double-digit millions.
Koenig & Bauer will be publishing its audited financial statements and annual report for 2020 on 24 March 2021.(end)
|emitter:||Koenig & Bauer AG|
|contact person:||Lena Landenberger|
|phone:||+49 931 909-4085|
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