Krones to increase sales by 16 per cent to around 4.2 billion euros in 2022

Management Board forecasts sales growth of eight to eleven percent for full year 2023

Krones headquarters

Krones can reflect on a successful business year 2022. The machinery and plant manufacturer for beverage production was able to significantly improve its key financial figures compared to the previous year and achieved or exceeded the targets it had set itself. According to preliminary figures, sales in 2022 increased by 15.8 percent year on year from 3.6 billion euros to 4.2 billion euros despite difficult conditions.

The company has thus exceeded the growth target of ten percent to twelve percent that was raised in October 2022. Thanks to its high degree of flexibility, the manufacturer of process technology, filling lines, and packaging machinery has succeeded in dealing well with scarce resources as well as problems in the supply chains, and in keeping production capacities well utilized overall. Due to the high level of demand, Krones order bookings rose by 34 percent year on year to just under 5.8 billion euros. The order backlog also grew strongly. At around 3.5 billion euros, it was 83.1 percent higher at the end of 2022 than a year earlier.

Profitability improved under challenging conditions

Thanks to extensive measures to boost efficiency, Krones' profitability improved in 2022 despite rising material and freight costs. Earnings before interest, taxes, depreciation and amortization (Ebitda for short) increased by 19.4 percent year on year to 373.3 million euros. Earnings before taxes increased by 36.5 percent to 242.1 million euros. Consolidated earnings increased by 32.3 per cent to 187.1 million euros in 2022, compared with 141.4 million euros in the previous year.

Krones forecasts further growth for 2023

According to its own statements, Krones has started the 2023 financial year with an extremely high order backlog. At the same time, the business environment is challenging, as there are a number of imponderables. These include geopolitical risks in Europe and other regions of the world, as well as high inflation rates and interest rates in many countries. Material bottlenecks and problems in global supply chains remain a factor of uncertainty. Based on the current overall economic outlook and the currently expected development of the markets relevant to Krones, the company anticipates sales growth of eight to eleven percent for the Group in 2023.