Earnings

EBIT and EBITDA

Earnings before interest and tax (EBIT) reached €96.6 million, which was 8.5 percent above the same period of the previous year (Q1 2016: €89.0 million). This includes the negative purchase price allocation effects of €46.6 million (Q1 2016: €6.7 million), which, in the quarter under review, were largely attributable to the acquisition of the Dematic Group. EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) was significantly higher than in the prior-year period at €152.9 million (Q1 2016: €98.6 million). The adjusted EBIT margin rose to 8.4 percent (Q1 2016: 8.1 percent). > TABLE 04

EBIT

 

04

in € million

Q1 2017

Q1 2016

Change

EBIT

96.6

89.0

8.5%

+ Non-recurring items

9.7

2.9

>100%

+ PPA items

46.6

6.7

>100%

Adjusted EBIT

152.9

98.6

55.1%

Earnings before interest, tax, depreciation and amortisation (EBITDA) reached €253.3 million, compared with €190.0 million in the prior-year period. Adjusted EBITDA rose to €263.0 million (Q1 2016: €191.7 million). This equates to an adjusted EBITDA margin of 14.5 percent (Q1 2016: 15.7 percent). > TABLE 05

EBITDA

 

05

in € million

Q1 2017

Q1 2016

Change

EBITDA

253.3

190.0

33.3%

+ Non-recurring items

9.7

1.8

>100%

+ PPA items

0.0

0.0

–100.0%

Adjusted EBITDA

263.0

191.7

37.2%

Key influencing factors for earnings

The cost of sales advanced to €1,354.6 million (Q1 2016: €872.5 million). This year-on-year rise was mainly attributable to the Supply Chain Solutions segment and the acquisition of Dematic. Higher material prices also impacted on the cost of sales. As a result, the gross margin was down year on year at 25.2 percent. However, there was a disproportionately small increase in selling expenses, development costs and administrative expenses.

The change in the cost of sales and in other functional costs is shown in > TABLE 06.

(Condensed) income statement

 

06

in € million

Q1 2017

Q1 2016

Change

Revenue

1,811.4

1,220.6

48.4%

Cost of sales

–1,354.6

–872.5

–55.3%

Gross profit

456.8

348.2

31.2%

Selling expenses and administrative expenses

–331.1

–243.3

–36.1%

Research and development costs

–34.4

–24.7

–38.8%

Other

5.2

8.8

–41.5%

Earnings before interest and taxes (EBIT)

96.6

89.0

8.5%

Net financial expenses

–35.8

–40.4

11.4%

Earnings before taxes

60.7

48.5

25.1%

Income taxes

–18.7

–15.5

–20.7%

Net income for the period

42.0

33.0

27.2%

Net financial income / expenses

The net financial expenses representing the balance of financial income and financial expenses came to €35.8 million in the first three months of this year (Q1 2016: €40.4 million). In the first quarter of last year, net financial expenses had included one-off financial expenses of €25.7 million incurred in connection with optimisation of the financing structure.

Income taxes

Income tax expenses amounted to €18.7 million (Q1 2016: €15.5 million). The tax rate was 30.8 percent (Q1 2016: 31.9 percent).

Net income for the period

Net income amounted to €42.0 million, up by 27.2 percent on the figure of €33.0 million in the first quarter of 2016. Earnings per share attributable to the shareholders of KION GROUP AG came to €0.39 (Q1 2016: €0.33) based on 108.6 million (Q1 2016: 98.7 million) no-par-value shares.