Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Koenig & Bauer AG (WBO:SKB, Financial) confirmed its guidance for the year, despite international political disruptions.
- The company reported a slight increase in order intake year-on-year, rising by 0.9%.
- The order backlog is at its highest level at the start of the year in recent history, providing a strong foundation for future operations.
- The new paper and packaging segment showed positive revenue growth and a slight improvement in earnings.
- The Spotlight program is on track, contributing to cost savings and supporting the company's financial targets.
Negative Points
- The company experienced a difficult first quarter, which is typical due to seasonality, but still concerning.
- Group revenue was below the first quarter due to seasonality and other factors.
- Operating EBIT was negative at minus EUR11.4 million, slightly worse than the previous year's minus EUR10.2 million.
- There were temporary effects of around EUR5 million in the special and new technologies segment, impacting profitability.
- The company faces uncertainties related to global economic and geopolitical developments, which could affect future performance.
Q & A Highlights
Q: Could you explain the EUR2 million FX effect and its impact on future quarters?
A: Stephen Kimmich, CFO, explained that the EUR2 million FX effect was due to a revaluation of dollar receivables at a higher hedge rate than the December 31 rate. This was a one-off effect, and the company has successfully hedged its US dollar revenue at an attractive rate for the next 2.5 years. The negative impact will be offset by positive effects in the next three quarters.
Q: How are tariffs affecting order intake in North America, and what is the expected demand trend for the rest of the year?
A: Stephen Kimmich noted that demand in the US is weakening due to delayed decision-making by customers, but there are no canceled orders. The company is confident in its strong order backlog and is exploring alternative markets. However, predicting order intake for the next quarters is challenging due to the uncertainty surrounding tariffs.
Q: Can you provide an update on the project for printing components for batteries with Volkswagen?
A: Andreas Plesske, CEO, confirmed that they are aiming for a proof of concept with Volkswagen by mid-year. This project is progressing well and is not affected by tariffs, as it is primarily focused on the European market.
Q: What is the status of the RotaJET market potential, and are there any new developments?
A: Stephen Kimmich stated that while there are more projects than ever before, they are not yet converting into order intake. The market uncertainty is causing delays in decision-making, but the company remains focused on pushing these projects forward.
Q: How is the new digital company, Kyana, expected to contribute to Koenig & Bauer's business?
A: Stephen Kimmich highlighted that Kyana, led by Sandra Wagner, is transitioning from an R&D project to a revenue-generating business. It currently has around 20 dedicated employees and is leveraging partnerships with companies like Google. While specific revenue targets are not yet disclosed, the company sees significant potential for Kyana to become a relevant contributor.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
