KION Group Boosts Profitability in H1 2024 with Strong Performance Across Segments

(IN BRIEF) KION Group reported a significant increase in profitability for the first half of 2024, with revenue rising by 2% to €5.736 billion and adjusted EBIT improving by 28% to €447 million. The company saw improvements in both its Industrial Trucks & Services and Supply Chain Solutions segments. Despite a slower market recovery, KION remains on track to achieve its financial outlook for 2024. The company confirmed and narrowed its guidance ranges for the year, anticipating stable market conditions and continued growth.

(PRESS RELEASE) FRANKFURT, 31-Jul-2024 — /EuropaWire/ — KION Group has announced impressive financial results for the first half of 2024, showing marked improvements in profitability across its operations. The company’s revenue increased by 2% to €5.736 billion, compared to €5.617 billion in the same period last year. Adjusted EBIT saw a substantial rise of 28%, reaching €447 million, up from €348 million in H1 2023. This progress resulted in an adjusted EBIT margin of 7.8%, an improvement from 6.2% last year.

Rob Smith, Chief Executive Officer of KION GROUP AG, commented, “Our strategic focus and broad product portfolio have driven significant profitability improvements across both our Industrial Trucks & Services and Supply Chain Solutions segments. Despite a slower market recovery, we are on track to meet our financial targets for 2024.”

The Industrial Trucks & Services segment reported a 4.1% increase in total revenue, amounting to €4.306 billion. This growth was supported by higher product deliveries and previous price increases. The service business within this segment also grew by 2.3%. Conversely, the Supply Chain Solutions segment experienced a slight decline in revenue to €1.451 billion, attributed to lower order intake in prior quarters. However, service business revenue in this segment saw an 11.9% increase.

Adjusted EBIT for the Industrial Trucks & Services segment improved significantly to €470.7 million, with the adjusted EBIT margin rising to 10.9%. The Supply Chain Solutions segment also showed remarkable progress, with adjusted EBIT nearly tripling to €42.1 million, driven by enhanced project implementation and efficiency measures. The adjusted EBIT margin in this segment increased to 2.9%.

KION Group’s net income for the first half of 2024 rose to €181.7 million, translating to undiluted earnings per share of €1.35. Free cash flow was reported at €202.2 million.

Given the performance in the first half of the year and updated market conditions, KION Group has confirmed and narrowed its outlook for 2024. The company now expects global industrial truck market volumes to remain at prior-year levels, with a slight decline anticipated in the supply chain solutions market.

The revised outlook for 2024 is as follows:

Revenue: €11,300 – €11,700 million
Adjusted EBIT: €830 – €920 million
Free cash flow: €550 – €670 million
ROCE: 7.7% – 8.7%

KION Group continues to demonstrate resilience and strategic growth, positioning itself strongly for future advancements in the industrial trucks and supply chain solutions markets. The company’s commitment to innovation and customer-centric solutions remains a driving force behind its success.

For more detailed financial performance data and segment-specific information, please refer to KION Group’s official financial reports for H1 2024.

The Company

The KION Group is one of the world’s leading providers of industrial trucks and supply chain solutions. Its full spectrum of services includes industrial trucks, such as forklift trucks and warehouse trucks, as well as integrated automation technologies and software solutions for the optimization of supply chains—including all related services. The KION Group’s solutions ensure the smooth flow of materials and information in customers’ warehouses, production plants, and distribution centers in over 100 countries.

The MDAX listed group is the largest manufacturer of industrial trucks in the EMEA region based on the number of units sold in 2022. Based on revenue for the year 2022, the KION Group is the leading overseas manufacturer in China, and including domestic manufacturers, the third-largest supplier there. The KION Group is also one of the world’s leading warehouse automation providers, based on 2022 revenue.

At the end of 2023, more than 1.8 million industrial trucks of the KION Group were in use by customers from all manner of sectors and of varying sizes on six continents. The group currently has more than 42,000 employees and generated revenue of approx. € 11.4 billion in the 2023 financial year.

You can access up-to-date image material for the KION Group via our image database https://kion-mediacenter.canto.global/v/MediaCenter/ as well as on our respective brands’ websites.

Disclaimer

This release and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdiction.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ significantly from the results that are currently expected due to various risk factors and uncertainties such as changes in economic or industry-specific conditions, changes in the market environment or political situation, changes in domestic or international legislation, interest rate or exchange rate fluctuations, legal disputes and investigations, and the availability of financial resources. We do not assume any responsibility for updating the forward-looking statements in this release.

Media Contacts:

Further information for media representatives:

Dr. Christopher Spies
Senior Manager Corporate Communications
Cell +49 (0)151 14 06 52 27
christopher.spies@kiongroup.com

Further Information for Investors:

Sebastian Ubert
Vice President Investor Relations
Phone +49 (0)69 201 107 329
sebastian.ubert@kiongroup.com

Raj Junginger
Senior Manager Investor Relations
Phone +49 (0)69 201 107 942
raj.junginger@kiongroup.com

Website: www.kiongroup.com/media

SOURCE:KION Group

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