Revenue up by 2 percent to € 5.736 billion (H1 2023: € 5.617 billion)
Adj. EBIT improves 28 percent to € 447 million (H1 2023: € 348 million)
Adj. EBIT margin of 7.8 percent (H1 2023: 6.2 percent)
Free cash flow of € 202 million (H1 2023: € 229 million)
Outlook for 2024 confirmed with narrowed bandwidths
The KION Group continued to deliver strong earnings and margins in the first half of 2024. With revenues of € 5.736 billion (H1 2023: € 5.617 billion) and a 28 percent higher adjusted EBIT of € 447.0 million (H1 2023: € 348.3 million), the adjusted EBIT margin went up by 160 basis points to 7.8 percent (H1 2023: 6.2 percent).
“Significant year-on-year profitability improvements in both operating segments led to a 28 percent increase of our adjusted EBIT in the first half of the year,” says Rob Smith, Chief Executive Officer of KION GROUP AG. “Despite a slower market recovery in the current financial year, we are well on track to achieve our outlook. Our clear strategy, our broad range of products and solutions for customers and our presence in all key markets position KION very well for the future.”
The Industrial Trucks & Services segment increased total revenues by 4.1 percent to € 4.306 billion (H1 2023: € 4.135 billion), supported by a higher number of products delivered and previous price increases. The revenue in the service business grew by 2.3 percent across all key categories. Despite a slight increase in the second quarter, total revenue in the Supply Chain Solutions segment declined to € 1.451 billion (H1 2023: € 1.497 billion) in the first half of 2024 – mainly due to lower order intake in the project business in previous quarters. The service business revenue increased by 11.9 percent compared to the first half of 2023.
Adjusted EBIT for the Industrial Trucks & Services segment improved substantially to € 470.7 million (H1 2023: € 378.9 million). Revenue growth combined with stable material purchase prices led to a significantly higher gross margin. The adjusted EBIT margin increased to 10.9 percent (H1 2023: 9.2 percent). At € 42.1 million, adjusted EBIT in the Supply Chain Solutions segment almost tripled compared to the previous year (€ 14.8 million). Improved project implementation, efficiency measures and, in particular, the growth in the service business contributed to the improvement in earnings and margins. The adjusted EBIT margin rose to 2.9 percent (H1 2023: 1.0 percent).
KION Group net income improved to € 181.7 million in the first half of 2024 (H1 2023: € 146.3 million). This corresponds to undiluted earnings per share of € 1.35 (H1 2023: € 1.09). Free cash flow was € 202.2 million (H1 2023: € 228.8 million) in the first six months of 2024 reflecting the high operating result.
Outlook confirmed and narrowed
The KION Group expects the global industrial trucks market (in units) to remain on the prior year level in 2024 compared to earlier expectations of slight growth. In the market for supply chain solutions, the KION Group now expects the global market volume in 2024 (measured in terms of revenue) to decline slightly compared with the previous expectation of a slight growth.
Based on the business performance in the first half of the year and the updated market expectations, the Executive Board of KION GROUP AG has confirmed its outlook and narrowed its guidance ranges for the 2024 financial year as follows:
| Outlook 2024 | ||||||||||||
| KION Group | Industrial Trucks & Services |
Supply Chain Solutions |
||||||||||
| in € million | Outlook 2024 |
Outlook 2024 adjusted |
Outlook 2024 |
Outlook 2024 adjusted |
Outlook 2024 | Outlook 2024 adjusted |
||||||
| Revenue1 | 11,200 – 12,000 | 11,300 – 11,700 | 8,500 – 9,000 | 8,500 – 8,700 | 2,700 – 3,000 | 2,800 – 3,000 | ||||||
| Adjusted EBIT1 | 790 – 940 | 830 – 920 | 850 – 950 | 870 – 930 | 60 – 120 | 80 – 120 | ||||||
| Free cash flow | 550 – 670 | 550 – 670 | – | – | – | – | ||||||
| ROCE | 7.4% – 8.8% | 7.7% – 8.7% | – | – | – | – | ||||||
| 1 Disclosures for the Industrial Trucks & Services and Supply Chain Solutions segments also include intra-group cross-segment revenue and effects on EBIT. | ||||||||||||
Key performance indicators for the KION Group and its two operating segments for the first half-year of 2024 and for the second quarter ending June 30, 2024
| in € million | Q2/2024 | Q2/2023 | Diff. | H1/2024 | H1/2023 | Diff. |
| Revenue
Industrial Trucks & Services |
2,877 2,153 732 |
2,836 2,130 714 |
1.4% 1.1% 2.5% |
5,736
4,306 |
5,617 4,135 1,497 |
2.1% 4.1% -3.1% |
| Adjusted EBIT [1] Industrial Trucks & Services Supply Chain Solutions |
220.3 231.0 23.7 |
192.3 202.3 7.7 |
14.5% 14.2% > 100% |
447.0 470.7 42.1 |
348.3 378.9 14.8 |
28.3% 24.2% > 100% |
| Adjusted EBIT margin [1] Industrial Trucks & Services Supply Chain Solutions |
7.7% 10.7% 3.2% |
6.8% 9.5% 1.1% |
– – – |
7.8% 10.9% 2.9% |
6.2% 9.2% 1.0% |
– – – |
| Net income | 70.7 | 72.8 | -2.9% | 181.7 | 146.3 | 24.1% |
| Basic earnings per share (in €) (undiluted) [2] | 0.52 | 0.54 | -4.1% | 1.35 | 1.09 | 23.6% |
| Free cash flow [3] | 136.5 | 123.9 | 12.7 | 202.2 | 228.8 | -26.5 |
| Order intake [4]
Industrial Trucks & Services |
2,640
1,966 |
2,872 2,001 881 |
-232 -35 -204 |
5,079
3,770 |
5,273
3,957 |
–194
-188 |
| Order book [4], [5]
Industrial Trucks & Services |
5,272 2,602 2,732 |
6,045 3,197 2,921 |
-773 -595 -189 |
|||
| Employees [6] | 42,303 | 42,325 | -22 |
[1] Adjusted for effects of purchase price allocations as well as non-recurring items.
[2] Net income attributable to shareholders of KION GROUP AG: € 177.0 million (H1/2023: € 143.3 million). EPS calculation is based on average number of shares of 131.1 million.
[3] Free cash flow is defined as cash flow from ongoing business plus cash flow from investment activity.
[4] Prior-year figures for order intake and order book have been definition-related adjusted in the SCS segment.
[5] Figures as of June 30, 2024, compared to balance sheet date Dec. 31, 2023.
[6] Number of full-time equivalents incl. apprentices and trainees as of June 30, 2024, compared to balance sheet date Dec. 31, 2023.
