Growth target for 2018 achieved
Krones, a leading manufacturer of filling and packaging technology, continued to grow in 2018. Revenue increased by 4.4%, from €3,691.4 million to €3,854.0 million. The company thus attained the revised forecast of 4% revenue growth announced in autumn 2018. Adjusted for currency and acquisition effects, revenue in 2018 rose by around 5%.
Investment in new market reduced earnings
Krones’ earnings were significantly impacted by higher material and labour costs in 2018. The 5.3% EBT margin includes approximately €42 million in expenses for reorganisation and in connection with acquisitions. The largest part of these expenses are one-off costs relating to the set-up of the production site in Hungary. In total, earnings before taxes (EBT) in 2018 were down by €54.5 million year-on-year to €204.3 million.
Based on the actual macroeconomic outlook and the current expected development of the markets relevant to Krones, the company expects revenue growth of 3% and an EBT Margin of 6 % in 2019. The company's price increases on all bottling and packaging equipment and for process technology with effect from 1 May 2018 are likely to have a slight positive effect on earnings in the 2019 financial year.
All stated figures are preliminary and are subject to change in the course of auditing by the independent auditors.