• Print Innovation Asia

Koenig & Bauer forecast revenue growth in 2021

Koenig & Bauer announced it achieved revenue of €1.0bn in 2020. In 2019, the company achieved revenue of €1.2bn. The 17.4% decline in sales reflects the measures adopted by governments worldwide in 2020 to halt the spread of the Covid-19 pandemic.

Service business accounted for about 30% of the group’s revenue in 2020 against the backdrop of the pandemic. The 14.6% decline in order intake to €975m (2019: €1.1bn) was also due to Covid-19-related constraints on global economic activity.

Despite the impact of the pandemic, there were signs of recovery based on progress made in vaccinations. Thus, the group expects an organic revenue growth of about 4% to €1.07bn and break-even at the EBIT level projected for 2021.

On the earnings side, it expects to break even at the EBIT level in 2021 following the successful launch of the “P24x” efficiency programme and the planned savings effects. Implementation of the “P24x” will leave traces on free cash flow in 2021, resulting in a negative free cash flow in the mid double-digit millions.

The decline in revenue and orders in 2020, was less pronounced than for the printing press industry as a whole, according to figures released by industry association, VDMA.

Koenig & Bauer’s order backlog as of 31 December 2020 was valued at €632m, down 7.9% on the previous year (31 December 2019: €686m). EBIT was at a loss of €-19m in 2020, and the group net loss was at €103m.

Individually, order intake in the Sheetfed segment declined by only a moderate 5.5%. In 2020, this segment achieved growth in medium- and large-format sheetfed offset presses and folding-box gluers, which were primarily ordered by customers in the packaging printing sector. In the fourth quarter, the Sheetfed segment recorded order intake of €178m, thus exceeding the previous year’s figure (Q4 2019: €166m).

Dr Stephen Kimmich, CFO of Koenig & Bauer AG: “The order backlog of more than €630m provides solid underpinnings for our forecast for the Koenig & Bauer Group in 2021. With the efficiency measures under “P24x”, we have also laid important foundations for improving our profitability. In 2021, this should already allow us to break even at the EBIT level. After the completion of the four-year efficiency programme, we hope - as stated in autumn 2020 - to achieve revenue of €1.3bn and an EBIT margin of at least 7% and to reduce net working capital to a maximum of 25% of annual revenue.”

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