Corporate press release

GEA sees earnings rise again in fiscal year 2023 and proposes dividend increase

7 Mar 2024

  • Organic order intake growth of 0.8 percent; reported order intake down 3.7 percent to EUR 5,469 million (2022: EUR 5,679 million)
  • Organic revenue up by 8.4 percent; on a reported basis, revenue rose 4.0 percent to EUR 5,373 million (2022: EUR 5,165 million)
  • EBITDA before restructuring expenses up EUR 62 million to EUR 774 million (2022: EUR 712 million)
  • EBITDA margin before restructuring expenses increased by 0.6 percentage points to 14.4 percent (2022: 13.8 percent)
  • Return on capital employed (ROCE) further increased to 32.7 percent (2022: 31.8 percent)
  • Net working capital as a percentage of revenue, at 6.4 percent (2022: 6.1 percent) significantly better than the target range of 8 to 10 percent
  • Proposed further dividend increase to EUR 1.00 per share (2022: EUR 0.95)
  • Positive outlook for fiscal year 2024: Organic revenue growth between 2 and 4 percent; EBITDA margin before restructuring expenses between 14.5 and 14.8 percent; ROCE between 29.0 and 34.0 percent

In an environment marked by geopolitical uncertainty, rising interest rates and negative exchange rate developments, GEA’s business has continued to perform well, with a further improvement in its key financial figures and another dividend increase proposed. Adjusted for portfolio and currency translation effects, organic order intake grew by 0.8 percent. Reported order intake declined by 3.7 percent to EUR 5,469 million. Group revenue rose by 8.4 percent organically and by 4.0 percent on a reported basis to EUR 5,373 million. EBITDA before restructuring expenses rose by EUR 62 million to EUR 774 million. The corresponding EBITDA margin increased to 14.4 percent. Return on capital employed (ROCE) further improved to 32.7 percent. Net working capital as a percentage of revenue amounted to 6.4 percent.

“In the face of the numerous challenges in fiscal year 2023, we managed to further improve our key financial figures. This is yet again testament to our strength and resilience,” says CEO Stefan Klebert. “We would not have achieved these results without our employees, whose extraordinary commitment is crucial to our success. I would like to thank each and every one of them for their vital contribution.”

Slight uptick in organic order intake

In fiscal year 2023, order intake declined by 3.7 percent to EUR 5,469.4 million (2022: EUR 5,678.9 million), primarily due to negative currency translation effects of EUR 221 million. Organically, order intake rose by a slight 0.8 percent. Among the customer industries, beverage and new food recorded double-digit year-on-year growth, while other customer industries saw declines. In the course of the reporting year, GEA secured 13 large orders (volume over EUR 15 million) worth a total of EUR 386 million, notably in the beverage, new food, dairy and chemical customer industries.

Revenue rose by 4.0 percent to EUR 5,373.5 million (2022: EUR 5,164.7 million). At 8.4 percent, organic growth was even significantly higher, thus reaching the forecast level of more than 8.0 percent. All divisions contributed to this strong organic growth – in some cases recording double-digit growth rates. The share of the service business in total revenue also further improved to 36.1 percent (2022: 34.9 percent). This development was driven by almost all customer industries, with only new food and pharma recording year-on-year declines. Revenue growth was likewise registered in all regions, except for Asia-Pacific, where revenue was down on the prior-year level.

Virtually all divisions contributed to positive earnings performance 

EBITDA before restructuring expenses rose by EUR 62 million, or 8.7 percent, to EUR 774.3 million (2022: EUR 712.0 million). In addition to improved gross profit, this is attributable to the slight decline in selling expenses and the disproportionately small increase in general administrative expenses. The corresponding EBITDA margin further improved to 14.4 percent (2022: 13.8 percent), reaching the forecast level of at least 14.0 percent. Virtually all divisions contributed to this positive performance, with only Food & Healthcare Technologies recording a temporary decline. 

Group profit for fiscal year 2023 came to EUR 392.8 million (2022: EUR 401.4 million). The slight year-on-year decrease was due to the lower profit after tax from discontinued operations as well as higher income tax expenses. At EUR 2.28, earnings per share were on a par with the previous year. Earnings per share before restructuring expenses came to EUR 2.56, compared with EUR 2.58 the year before. 

Under the new share buyback program launched in November 2023 (up to EUR 400 million by the beginning of 2025), a total of 1,451,583 shares had been repurchased for EUR 50 million by the end of December; these have since been held as treasury shares. 

Net liquidity increased from EUR 346.4 million in the previous year to EUR 371.2 million. Net working capital as a percentage of revenue amounted to 6.4 percent, compared with 6.1 percent in the previous year, and thus remained significantly better than the target range of 8 to 10 percent.

The average capital employed over the last four quarters as of December 31, 2023 increased by EUR 110 million to EUR 1,776 million, largely as a result of an increase in non-current assets and the higher net working capital. At the same time, EBIT before restructuring expenses increased by a substantial 9.7 percent from EUR 529.1 million to EUR 580.6 million. Return on capital employed (ROCE) further improved from 31.8 percent to 32.7 percent. At constant exchange rates, ROCE was 33.1 percent, reaching the forecast level of over 32.0 percent.

Higher dividend of EUR 1.00 per share to be proposed to Annual General Meeting

Based on the good overall operating performance in fiscal year 2023 and in accordance with the company’s dividend policy, the Executive Board and Supervisory Board will propose to the Annual General Meeting that the dividend be raised by EUR 0.05 compared with the previous year to EUR 1.00 per share.

GEA expects continued revenue and margin growth in 2024

Given the strong order backlog and current business performance, GEA anticipates organic revenue growth of 2.0 to 4.0 percent and an EBITDA margin before restructuring expenses of 14.5 to 
14.8 percent in fiscal year 2024. With regard to ROCE, the company forecasts a figure of between 29.0 and 34.0 percent.

Medium-term financial targets through to 2026 confirmed

GEA has confirmed the medium-term targets set out in its Mission 26 growth strategy presented in September 2021. These see organic group revenue growing by an average of 4 to 6 percent annually up to 2026 (2023: 8.4 percent). By the end of 2026, the EBITDA margin before restructuring expenses is targeted to increase beyond 15 percent (2023: 14.4 percent) and ROCE to more than 30 percent (2023: 32.7 percent). 

GEA affirms its role as sustainability pioneer 

At its Annual General Meeting on April 30, 2024, GEA will be the first company in the DAX index family to present to shareholders its Climate Transition Plan 2040 for approval in the form of a consultative vote. In this way, shareholders are actively involved in GEA’s transformation process to becoming a net-zero company. In addition, it means GEA is creating transparency regarding the specific interim targets and the corresponding measures. This step affirms GEA’s role as a pioneer in the field of climate change mitigation. Further details about the Climate Transition Plan 2040 are available from today at gea.com/climateplan.

“For us, it is about both protecting the climate and ensuring GEA’s long-term growth,” emphasizes CEO Stefan Klebert. “The future belongs to intelligent, low-emission solutions that save energy and conserve resources. We intend to continue to lead the way on this journey – giving ourselves and our customers an edge over the competition.”
 

Financial key figures of GEA

20232022Change in %
Order intake
5,469.45,678.9-3.7
Book-to-bill ratio
1.021.10-
Order backlog
3,116.63,192.7-2.4
Revenue
5,373.55,164.74.0
Organic revenue growth1
8.48.9-59 bps
Share of service revenue in %
36.134.9127 bps
EBITDA before restructuring expenses
774.3712.08.7
as % of revenue
14.413.862 bps
EBITDA
713.86549.1
EBIT before restructuring expenses
580.6529.19.7
EBIT
519.746112.7
Profit for the period
392.8401.4-2.1
ROCE in %2
32,731,893 bps

1) Adjusted for portfolio and currency translation effects.
2) EBIT before restructuring expenses of the last 12 months. Capital employed average of the last 4 quarters and excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999.

20232022Change in %
Cash flow from operating activities
529.4471.612.3
Cash flow from investing activities
-198.2–175.8-12.8
Free cash flow
331.2295.812.0
20232022Change in %
Net working capital (reporting date)
345.9314.110.1
as % of revenue (LTM)
6.46.136 bps
Capital employed (reporting date)3
1,673.11,590.15.2
Equity
2,397.72,280.95.1
Equity ratio in %
40.338.5175 bps
Net liquidity (+)/Net debt (-)4
371.2346.47.2
20232022Change in %
Earnings per share (EUR)
2.282.28-0.1
Earnings per share before restructuring expenses (EUR)
2.562.58-1.0
Market capitalization (EUR billion; reporting date)5
6.56.9–5.8
Employees (FTE; reporting date)
18,77318,2362.9
Total workforce (FTE; reporting date)
19,56219,2551.6
1) Adjusted for portfolio and currency translation effects.
2) EBIT before restructuring expenses of the last 12 months. Capital employed average of the last 4 quarters and excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999.
3) Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999.
4) Including lease liabilities of EUR 154.8 million as of December 31, 2023 (prior year EUR 165.2 million).
5) The market capitalization includes treasury shares. XETRA closing price as of December 29, 2023: EUR 37.69; XETRA closing price as of December 30, 2022: EUR 38.20

Lilian Schmalenstroer

CONTACT

Phone: +49 211 91362090

Media Relations

GEA Group Aktiengesellschaft

Peter-Müller-Str. 12


40468

Düsseldorf


Germany

+49 211 9136-0

À propos de GEA

GEA est un des principaux fournisseurs de l'industrie agroalimentaire et d'autres industries, qui sont à l’origine d’un revenu consolidé qui a atteint près de 4,9 Mrd EUR en 2019.

C’est un groupe international spécialisé dans les machines et les installations, ainsi que dans les technologies de procédés et composants. GEA fournit des solutions énergétiques durables, utilisées dans des process de production de pointe pour divers marchés, et offre une gamme complète de services. Le groupe réalise près de 70 % de son revenu dans l'industrie alimentaire et des boissons, un secteur caractérisé par une croissance durable de long terme. Au 31 décembre 2018, la société employait plus de 18 500 personnes dans le monde. GEA est un leader du marché et des technologies dans ses secteurs d'activité. La société est cotée sur l'indice boursier allemand MDAX (G1A, WKN 660 200), sur l'indice STOXX® Europe 600 et sur des indices de durabilité globale MSCI sélectionnés.
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