The 10.5 million Euros (A$17.5 million) cost of exhibiting at the DRUPA trade show helped press maker Koenig & Bauer to a “historically strong” final quarter to 2024, securing its target for the year.
Operating EBIT of 46.5 million Euros (A$77.6 million) – adjusted for DRUPA and the costs of its Spotlight programme – on 1.27 billion Euros (A$2.12 billion) revenue, compared to 32 million Euros (A$53.4 million) EBIT the previous year.
The order intake – with sheetfed sales continuing after the show – led to the highest year-end order backlog in the company’s recent history, providing a strong basis for 2025 and beyond, chief executive Andreas Pleßke said.
K&B had used DRUPA (pictured) to demonstrate its innovative strength and to intensify relations with its customers. “However, spending restraint, geopolitical tensions and trade conflicts continue to pose challenges.
“The fact that we are operating in the less volatile packaging markets is paying off. Packaging of all kinds is always needed, especially in the food, pharmaceutical, beverage and consumer goods markets.”
The bad news is that extraordinary items for the ‘Spotlight’ focus programme of 50.4 million Euros took it beyond the targetted of 30-45 million Euros, resulting in group EBIT showing a loss of 35.1 million Euros. Extraordinary items include a project to fix ongoing losses in its digital & webfed. The board has decided to abandon its project for two-piece beverage can printing, which had “failed to reach defined goals and anticipated market potential”.
Chief financial officer and deputy CEO Stephen Kimmich said it was the group’s priority to operate profitably in every area. “We do not build machines for the sake of building machines.”
Orders in the digital & webfed segment – which includes newspaper presses – were down 10.7 per cent at 160.6 million Euros, and adjusted EBIT led to a loss of 25.5 million Euros, down 16.2 per cent.
Audited financial statements and the group’s annual report are to be published on March 26, when a conference call will be held for analysts and investors.