Krones, the German manufacturer of bottling lines, has announced a higher net profit for the second quarter. The company attributes this increase to price hikes that helped offset rising material costs. Furthermore, Krones has reaffirmed its recently raised full-year outlook.
During the second quarter, Krones recorded a net profit of 57.9 million euros ($63.7 million), representing a significant increase from the EUR43.0 million reported in the same quarter last year. Additionally, the company’s revenue rose by 12.5% to reach EUR1.12 billion.
While the order intake for the quarter declined to EUR1.27 billion compared to EUR1.55 billion in the prior-year period, Krones assures that customer orders have normalized. The company anticipates that order intake will remain at a normalized level throughout the second half of the year.
Moreover, Krones experienced a noteworthy improvement in earnings before interest taxes depreciation and amortization (EBITDA). It increased by 21% to EUR106.4 million, resulting in a margin expansion from 8.8% to 9.5%.
Despite facing a scarcity of electrical components, which incurred additional costs, Krones successfully enhanced its profitability.
Looking ahead, Krones predicts revenue growth between 11% and 13% for the entire year, along with an EBITDA margin ranging from 9% to 10%. Furthermore, the company expects an amelioration of material shortages and supply-chain issues, specifically regarding electronic components, in the second half of this year.