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KION Group Achieves High Order Intake and Increase in Revenue in 2022, Significant Decline in Earnings

KION GROUP AG finished 2022 with order intake at a high level in a challenging macroeconomic and geopolitical environment. The global intralogistics Group recorded an increase in revenue compared to the previous year, including clearly positive currency effects. Sharply rising costs for materials, energy, and logistics coupled with ongoing supply chain disruptions had a significant impact on both operating segments in the last year, which was reflected in a decline in adjusted EBIT and a clearly negative free cash flow for the Group.

2023-03-02

At €11.708 billion, KION Group’s order intake came to within 6.2 percent of the previous year’s record figure (€12.482 billion), despite a noticeable drop in demand. The Group revenue exceeded the prior year’s figure (€10.294 billion) by 8.2 percent, totaling €11.136 billion. Both operating segments contributed to this, mainly benefiting from the high volume of orders in the order book from the previous year and the strong performance of the service business.

We faced a great deal of challenges in 2022. In light of this, we are focusing on the systematic implementation of the numerous measures we have introduced to strengthen our resilience and profitability. We are already in a far more agile and resilient position than we were this time last year. Our innovation pipeline is full and we invest in our sites worldwide. Furthermore, global growth drivers at KION Group such as digitalization, automation, and alternative energy systems remain intact.

Rob Smith, Chief Executive Officer of KION GROUP AG

KION Group’s adjusted EBIT fell to €292.4 million, significantly below the 2021 comparable figure (€841.8 million), as a result of significant cost increases and supply chain disruptions. KION Group’s adjusted EBIT margin totaled just 2.6 percent (previous year: 8.2 percent).

Overall, the KION Group believes that it is well prepared for the future in view of the steps that it has taken to boost its resilience. It expects an increase in revenue and a significant improvement in both adjusted EBIT and return on capital employed (ROCE) in 2023. As a result, it anticipates that free cash flow will be comfortably into positive territory.