KION Group achieves strong results and increases profitability in the first nine months of FY 2024
2024-10-30 Old - Performance 1 minThe KION Group significantly improved its profitability in the first nine months of the financial year.
The company achieved an adjusted EBIT of € 666.7 million (2023: € 571.9 million) on the back of € 8.435 billion (2023: € 8.347 billion) in revenues. Consequently, the adjusted EBIT margin increased 1.0 percentage point year-on-year to 7.9 percent.
Total revenue in the Industrial Trucks & Services segment increased by 2.4 percent to € 6.305 billion (2023: € 6.160 billion), mainly driven by higher unit sales and improved prices. The service business grew revenues by 2.2 percent and accounted for 48.0 percent of external segment revenue – which was in line with the previous year (48.1 percent). In the Supply Chain Solutions segment, revenues came in at € 2.161 billion (2023: € 2.216 billion). The project business revenue declined by 12.1 percent, the higher-margin service business instead grew significantly by 15.8 percent – the service share of external segment revenue grew to 41.5 percent (2023: 34.9 percent).
Macroeconomic and political uncertainties continue to affect the business climate in the major economies of Europe, Asia, and the Americas throughout 2024. Against the backdrop of this challenging environment, we are well on track to achieve our targets for the financial year. With the confidence of a strong performance in the first nine months, we are narrowing the target bandwidths further and confirm our outlook for the year.
Rob Smith, Chief Executive Officer of KION GROUP AGThe adjusted EBIT of the Industrial Trucks & Services segment rose significantly to € 672.9 million (2023: € 613.6 million). Revenue growth and stable material costs led to a significantly increased gross margin and an adjusted EBIT margin of 10.7 percent (2023: 10.0 percent). Adjusted EBIT also improved significantly in the Supply Chain Solutions segment, more than doubling year-on-year to € 70.5 million (2023: € 30.7 million). Higher earnings contribution from the service business, efficiency measures in project implementation and the progress in completing lower-margin legacy orders were the key drivers of adjusted EBIT improvement. The adjusted EBIT margin improved to 3.3 percent (2023: 1.4 percent).
At € 255.6 million, net income was higher year-on-year (€ 228.3 million). This corresponds to undiluted earnings per share of € 1.90 (2023: € 1.70). At € 431.3 million, free cash flow was significantly higher than in the previous year (€ 329.3 million).
You can find our business results for Q3 2024 at a glance in our
More detailed information on business performance you can find in our
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