Krones' Q3 net profit surges 20% amid strong demand for packaged goods

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Krones' Q3 net profit surges 20% amid strong demand for packaged goods
Credit: © Reuters.

The German bottling-machine producer, Krones, reported a 20% surge in its third-quarter net profit to €54.3 million ($57.7 million), despite facing a reduced supply of electrical components. This growth was primarily driven by the steady demand for packaged food and beverages.

Krones also experienced an increase in sales, with a 10% rise to a total of €1.16 billion. The company's EBITDA significantly advanced by 17% to reach €110.9 million, leading to an improved EBITDA margin of 9.5%.

While the order intake for the quarter under review fell short compared to the same period last year, it witnessed a 4.3% increase from the previous quarter. This uptick resulted in a substantial increase in the order backlog, exceeding the €4 billion mark for the first time in the company's history.

The robust demand for packaged food and beverages played a crucial role in driving this order surge, indicating that Krones continues to benefit from persistent consumer trends, even amidst supply chain challenges.

InvestingPro Insights

Krones (KRNG) has been demonstrating a strong financial position, as evidenced by InvestingPro's key metrics and tips. The company holds more cash than debt on its balance sheet, a promising sign of financial health. Additionally, Krones has consistently increased its earnings per share, indicating a trend of growing profitability.

InvestingPro data reveals that Krones has a market capitalization of $3,178.82 million and trades at a P/E ratio of 13.24, which is considered low relative to its near-term earnings growth. Moreover, the company's revenue growth over the last twelve months as of Q2 2023 has been impressive, clocking in at 16.21%.

Krones also boasts a gross profit margin of nearly 50% as of Q2 2023, which aligns with the InvestingPro tip noting the company's impressive gross profit margins. Furthermore, the company has maintained its dividend payments for 13 consecutive years, which could make it an attractive option for income-focused investors.

With more than nine additional tips available on InvestingPro, investors can gain further insights into Krones' performance and potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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