Krones, the German manufacturer of bottling machines, has announced a remarkable 20% increase in its net profit for the third quarter, reaching €54.3 million ($57.7 million), despite grappling with a reduced supply of electrical components. This impressive growth can be attributed to the sustained demand for packaged food and beverages.
In addition to the surge in net profit, Krones also witnessed a notable uptick in sales, with a 10% increase, reaching a total of €1.16 billion. The company’s EBITDA exhibited significant growth, rising by 17% to €110.9 million, leading to an enhanced EBITDA margin of 9.5%.
Although the order intake for the quarter fell short when compared to the same period in the previous year, it did mark a 4.3% increase from the previous quarter. This increase resulted in a substantial rise in the order backlog, surpassing the €4 billion milestone for the first time in the company’s history.
The robust demand for packaged food and beverages played a pivotal role in driving this surge in orders, underscoring Krones’ ability to capitalize on enduring consumer trends, even in the face of supply chain challenges.
Krones (KRNG) has consistently demonstrated a solid financial position, as supported by key metrics and tips from InvestingPro. The company maintains a healthier cash position than debt on its balance sheet, signaling financial stability. Moreover, Krones has consistently improved its earnings per share, indicating a trend of increasing profitability.
Notably, Krones boasts an impressive gross profit margin of nearly 50% as of Q2 2023, aligning with the InvestingPro tip highlighting the company’s strong gross profit margins. Additionally, the company has sustained its dividend payments for 13 consecutive years, making it an enticing option for income-focused investors.