Koenig & Bauer Exceeds Forecast, but Pandemic Takes Toll

Revenue for 2020 of €1.03 billion exceeded Koenig & Bauer’s guidance of €900-950 million, but was €217.2 million (17 .4%) lower than that achieved in 2019, according to its recently announced results.

Operating profit (EBIT) fell from €70.1 million in 2019 to a loss of €67.9 million in 2020, a decline of 197%. However, without three special one-off items – a successful legal proceeding costing €4 million, an efficiency programme costing €58 million and income from a property sale totalling €49 million, the loss would have been €19 million and the decline 127%, which significantly exceeded the company’s forecast. The decline was attributed mainly to the pandemic.

The net result for the year was a loss of €155.4 million compared with the profit in 2019 of €52.3 million.

The company’s Special Segment, where Koenig & Bauer Banknote Solutions busines sits, noted fewer orders in security, identification and direct glass printing, which reduced sales in comparison with 2019.

Order backlog in this segment was down by 23.1% compared to the previous year, whilst the order intake €306.1 million after 12 months was down 24.9% – mainly due to fewer orders from the Banknote Solutions division. Overall, sales were €377.3 million, down by 23.7%.

The company’s forecast assumes that COVID-19 restrictions will be lifted due to advances in vaccinations and renewed travel, but only after the first quarter. Group revenue is estimated to increase by 4% to €1.07 billion based on the order intake for 2020, which it describes as solid and which declined less compared to the industry as a whole in Germany.