The filling system specialist had to revise its sales forecasts downwards a few weeks ago. The new CEO Thomas Ricker still holds out the prospect of a “profitable growth path”.
Munich. The beverage bottling plant specialist Krones is not planning any strategy changes under the new CEO after lowering its sales forecasts. CEO Thomas Ricker told Handelsblatt on Friday: “The step obviously hurt us, but we remain on a profitable growth path.”
Ricker succeeded long-time Krones boss Christoph Klenk in the summer. The qualified mechanical engineer has been on the board since 2012. He now emphasized that the reduction in the sales forecast just a few weeks ago had nothing to do with the change at the top. There will be “no serious strategy change” at Krones under his leadership.
Even before he took office, they were a team and defined the goals together, which they tried to maintain with the entire Krones team. Then he adds: “But if the market simply doesn’t allow it, then this measure had to be taken.”
According to the downwardly revised growth forecasts, the group now only expects an increase in sales of one to two percent for 2026 - instead of the previous three to five percent. Krones also had to correct its medium-term goal.
Only 6.0 to 6.2 billion euros are expected for 2028. The board had previously forecast around seven billion euros. The group expects the operating margin to be eleven to twelve percent in 2028 instead of the previous eleven to 13 percent.
In the first nine months, revenue increased by 0.8 percent after adjusting for currency effects to 4.1 billion euros, as Krones announced on Friday. The operating margin rose from 10.5 to 11.1 percent. If a one-off special effect due to the reimbursement of US tariffs is excluded, the figure was 10.8 percent.
Krones had successfully resisted the weak industry situation for a long time and had grown faster in comparison. Traditionally, the food industry is more stable than other industries - people are always drinking, as Klenk once put it. In addition, many manufacturers in the USA, for example, have comparatively old machine stocks, which means business potential.
Last year, Krones' sales rose by seven percent to almost 5.7 billion euros. The operating result (Ebitda) improved by 12 percent to 602 million euros, which corresponded to a margin of 10.6 percent. For the year as a whole, the margin should be 10.7 to 11.1 percent.
But then the global uncertainties and the rise in oil prices recently dampened the willingness of Krones customers to invest. This affects the filling systems, but especially the injection molding machines, which Krones also has in its portfolio.
According to a survey by the VDMA, around 33 percent of German mechanical engineering companies currently expect an improvement in the coming months. In the July survey it was only 25 percent. Only ten percent expect worse business. For the coming year, 62 percent of companies expect nominal sales growth. The results of the economic survey give “reason for cautious optimism,” said VDMA chief economist Johannes Gernandt.
However, the slightly better mood in mechanical engineering is largely driven by armaments, aviation, data centers and infrastructure, is how the new Krones boss describes the current slight upward trend. The challenges in the food and beverage industry are still great. Breweries, for example, continue to be under pressure.
Chief Financial Officer Uta Anders confirmed that the medium-term goal was ambitious. It had been signaled for a long time that we would end up at the lower end. Krones will therefore continue to remain disciplined when it comes to costs. However, she would like to emphasize: “We are not talking about major staff cuts at all.”
The ratio for personnel expenses is still relatively high. However, there will only be minor changes here as part of natural fluctuation.
