Media Information – Financial Results 2024

Zurich, 06 March 2025

Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
 

Financial Results 2024

• Bookings increased by 17.4%, driven by higher demand in the standardized system business
• Net revenues increased by 12.6%, with marked improvements in all business segments
• EBIT increased by 14.6% and reached a new record level with EUR 98.4 million
• Free cash flow increased to EUR 90.7 million mainly due to higher net profit and lower net working capital

The reporting year was characterized by continued positive demand dynamics for Kardex’ intralogistics solutions, which - combined with Kardex’ strong market position - led to good results. Although the economic slowdown continued in various industries, Kardex experienced an increase in the willingness to invest in Standardized Systems while some hesitation to invest in Automated Products was observed in the second half of the year. The gross profit margin improved due to normalized material costs, partially offset by higher salaries and IT expenses. Driven by the strong order backlog at the beginning of the year, net revenues increased, and profitability remained robust in the upper half of the financial targets range.

Demand for Kardex’ intralogistics solutions remained strong in the reporting year across many business sectors and market regions. This is reflected in bookings, which rose by a further 17.4% from the previous year’s result to a new record of EUR 791.2 million. Bookings in New Business increased by 19.7%, while bookings in Life Cycle Services rose by 11.7%. At the end of the reporting period, the order backlog stood at EUR 475.5 million, matching the good level of the previous year (EUR 475.9 million) but with a shift from Automated Products to Standardized Systems.

In terms of New Business, Kardex Remstar saw a weakening of demand in Europe and a slight slowdown in the US, while the Asia–Pacific region continued to grow. At Kardex Mlog, the order lead time was noticeably reduced, particularly from the second quarter onwards. Also Kardex AS Solutions developed very well throughout the year and bookings more than doubled overall.

Thanks to the high level of bookings and the continuous processing of the substantial order backlog at Kardex Remstar, combined with well-performing Life Cycle Services, net revenues amounted to EUR 791.2 million. This is not only 12.6% more than in the previous year, but also the highest net revenue ever achieved. New Business contributed 73.8% (74.2%) to net revenues, while Life Cycle Services accounted for 26.2% (25.8%). On Group level, higher personnel and IT costs were more than offset by normalized material costs and efficiency gains. As a result, gross profit increased by 17.3% to EUR 276.8 million. Although operating costs increased due to investments in R&D, IT, and Marketing, EBIT rose by 14.6% to EUR 98.4 million, resulting in an EBIT margin of 12.4% (12.2%). This remains at the upper middle range of Kardex’ financial targets of 10–14%. Net profit amounted to EUR 80.8 million, compared with EUR 66.9 million in the previous year. At the year’s end, Kardex employed 2’678 FTEs, up 11.7% over last year.

Automated Products increased net revenues to a new record level

This reporting segment consists exclusively of Kardex Remstar. Demand for Kardex Remstar’s intralogistics-solutions was slightly below the strong previous year. Especially in the second half of the year, some hesitation to invest was observed. Overall, bookings in this reporting segment totaled EUR 515.5 million, down 2.3% from the prior year. New Business and Life Cycle Services developed in opposite directions, with New Business bookings 8.2% below the prior-year period but Life Cycle Services up significantly by 11.9%, reflecting Kardex Remstar’s growing installed base in the market. Net revenues rose by 5.0% to EUR 557.1 million, a new record. The significant share of 30.5% of net revenues generated by Life Cycle Services positively impacted the operating result. Efficiency gains and normalized material costs offset rising personnel and IT costs. As a result, EBIT increased by 9.8% to EUR 90.0 million, resulting in an EBIT margin of 16.2%. The order backlog at the end of the period amounted to EUR 271.7 million, 13.4% below the high level of the previous year.

Standardized Systems achieved significant growth in bookings

The Standardized Systems reporting segment, comprising the business units Kardex Mlog and Kardex AS Solutions, achieved good results in a challenging market environment. Bookings in the reporting segment totaled EUR 276.0 million, a substantial increase of 88.4% compared to the previous year. Bookings at Kardex Mlog rose sharply by 62.6% to EUR 128.3 million, driven by higher demand and the decision-making process for larger projects has decreased significantly in the course of the year. Demand for AutoStore systems remained exceptionally strong, and bookings at Kardex AS Solutions rose by 118.9% to EUR 148.0 million. Net revenues in the reporting segment amounted to EUR 234.4 million, an increase of 36.0%. While Kardex Mlog’s net revenue fell slightly by 8.1% to EUR 104.2 million, Kardex AS Solutions grew strongly by 120.6% to EUR 130.4 million. Kardex Mlog and Kardex AS Solutions are increasingly benefiting from sales, service, and cost synergies, which contributed to an increase in the EBIT margin in the Standardized Systems reporting segment by 6.1% to EUR 14.4 million, corresponding to a gross profit margin of 22.6% (20.3%). With a strong order backlog of EUR 203.8 million, 25.6% more than a year ago, and a well-filled sales funnel, both divisions expect a solid start to the new financial year.

Increased free cash flow and net profit

The free cash flow was driven by a strong result for the period and further boosted by a reduced net working capital, reaching new heights at EUR 90.7 million (EUR 46.2 million). In addition to the strong operating result, the result for the period was also positively influenced by interest and investment income and a somewhat lower tax rate. Despite a substantial dividend payment, the cash position increased significantly once again and equity and the equity ratio rose considerably. ROIC remains with 36.1% (37.6%) at a high level.

Organizational changes at Kardex Remstar

Urs Siegenthaler retired from his role as Head of Division Remstar as planned at the end of 2024. In 2025, he will stay with Kardex in a reduced capacity to support the transition. The Board of Directors and the whole Kardex team thank him for his great contribution over the last 14 years. As part of creating a new route for growth, Kardex is streamlining the Company’s management by simultaneously shifting more responsibility to the front-line regions. Kardex Remstar will be managed in future directly by the Group CEO, Jens Hardenacke.

Proposals to the Annual General Meeting

In line with the dividend policy of distributing up to 75% of the net profit and taking into account future higher investments for ERP systems and factory infrastructures, the Board of Directors will propose a dividend of CHF 6.00 (CHF 5.00) to the Annual General Meeting on 24 April 2025. Furthermore, all current members of the Board of Directors are standing for reelection.

Outlook

The Board of Directors and Group Management remain confident that the demand to invest in intralogistics solutions will continue. Reshoring, labor shortages, and automation remain key growth drivers and Kardex is well-positioned to capitalize on these trends. Kardex plans to invest heavilly in the next two years into its sales organization, marketing, R&D, and IT infrastructure in order to benefit overproportionally from these trends. However, the large installed base provides a solid foundation for further profitable growth.

Updated financial targets over the cycle

Kardex intends to further accelerate its growth. The Company plans to cross the EUR 1.5 billion net revenue threshold by 2029-2031, while maintaining its profitability targets for the Group (EBIT margin between 10-14% over the cycle) with an EBIT margin target for Automated Products of 14–17% and Standardized Systems of 5–8%.

in EUR million

¹ Definition according Alternative Performance Measures (APM) see note 1 of the consolidated financial statements.

² 2024: Distribution of a dividend as proposed to the Annual General Meeting to be held on 24 April 2025.

Annual Report

A PDF version of the Annual Report 2024 of Kardex is available on our website.

Contact for media and investors
Alexandre Müller; investor-relations@kardex.com
Mobile: +41 (0)79 635 64 13

Kardex Corporate Profile

Kardex is a global industry partner for intralogistics solutions and a leading supplier of automated storage solutions and material handling systems. The Group consists of two entrepreneurially managed divisions, Kardex Remstar and Kardex Mlog. Kardex Remstar develops, produces, and maintains dynamic storage and retrieval systems and Kardex Mlog offers integrated materials handling systems and automated high-bay warehouses. Kardex also acts as a global AutoStore partner. The two business units are partners for their customers over the entire lifecycle of a product or solution. This begins with an assessment of customer requirements and continues via the planning, realization, and implementation of customer-specific systems through to ensuring a high level of availability and low lifecycle costs by means of customer-oriented lifecycle management. Around 2’700 employees in over 30 countries work for Kardex. Kardex Holding AG is listed on the Swiss SIX Stock Exchange since 1989.

Disclaimer

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