GEA GROUP Revenue Rose by 4.0 Percent to EUR 5.4 Billion
Source: The DairyNews
In 2023, GEA faced significant global challenges, including conflicts in Ukraine and the Middle East, economic instability marked by high inflation and rising interest rates. Despite these hurdles, GEA managed to enhance its key performance indicators and maintain its position in a tough market.
GEA remains firmly committed to achieving the ambitious financial goals outlined in its "Mission 26" strategy. This includes targeting an annual organic revenue growth of 4 to 6 percent, maintaining an EBITDA margin exceeding 15 percent, and achieving a ROCE of over 30 percent.
Order intake saw a modest organic growth of 0.8 percent, although reported figures dipped by 3.7 percent to EUR 5,469 million due to adverse currency effects.
Group revenue witnessed a 4.0 percent increase to EUR 5,373 million, with organic growth outpacing expectations at 8.4 percent, surpassing the forecast of over 8 percent.
EBITDA before restructuring expenses rose significantly to EUR 774 million, accompanied by a 0.6 percentage point increase in the corresponding margin to 14.4 percent, exceeding the target of 14.0 percent.
Stefan Klebert, CEO of GEA GROUP AKTIENGESELLSCHAFT, reflected on the challenges of 2023, emphasizing the company's strong performance amidst adversity.
"All things considered, the year 2023 presented a difficult test for our business as a whole. Despite this, GEA performed remarkably well. Our financial results demonstrate our strength and resilience, even in challenging times. In fact, we achieved all elements of our forecast, which was raised during the year. Our revenue rose by 4.0 percent to EUR 5.4 billion. Organically – that is, adjusted for portfolio and currency translation effects – our revenue grew by 8.4 percent, which clearly meets our communicated target of more than 8 percent revenue growth. This means that we have now achieved organic revenue growth of over 8 percent for two years in a row. It is equally encouraging to see EBITDA before restructuring expenses increase by EUR 62 million to EUR 774 million. The EBITDA margin before restructuring expenses improved accordingly by 0.6 percentage points to reach 14.4 percent and meets our communicated target of more than 14.0 percent. This is the fourth year in a row that we have increased our earnings. We are well on our way to achieving the target for 2026 of more than 15 percent. The increase in ROCE (Return on Capital Employed) from 31.8 percent percent to 32.7 percent rounds out our success for the 2023 financial year. It demonstrates our efficient capital utilization and shows an attractive return on capital," said Stefan Klebert.
Despite a 3.7 percent decline in order intake to EUR 5.5 billion, organic growth remained positive at 0.8 percent. The order backlog remained robust at EUR 3.1 billion, reflecting ongoing demand for GEA's offerings. Klebert expressed gratitude to GEA's employees for their exceptional dedication and highlighted the swift appointment of Bernd Brinker as the new CFO, expected to leverage his extensive financial experience for GEA's future growth.
Order intake saw a modest organic growth of 0.8 percent, although reported figures dipped by 3.7 percent to EUR 5,469 million due to adverse currency effects.
Group revenue witnessed a 4.0 percent increase to EUR 5,373 million, with organic growth outpacing expectations at 8.4 percent, surpassing the forecast of over 8 percent.
EBITDA before restructuring expenses rose significantly to EUR 774 million, accompanied by a 0.6 percentage point increase in the corresponding margin to 14.4 percent, exceeding the target of 14.0 percent.
Stefan Klebert, CEO of GEA GROUP AKTIENGESELLSCHAFT, reflected on the challenges of 2023, emphasizing the company's strong performance amidst adversity.
"All things considered, the year 2023 presented a difficult test for our business as a whole. Despite this, GEA performed remarkably well. Our financial results demonstrate our strength and resilience, even in challenging times. In fact, we achieved all elements of our forecast, which was raised during the year. Our revenue rose by 4.0 percent to EUR 5.4 billion. Organically – that is, adjusted for portfolio and currency translation effects – our revenue grew by 8.4 percent, which clearly meets our communicated target of more than 8 percent revenue growth. This means that we have now achieved organic revenue growth of over 8 percent for two years in a row. It is equally encouraging to see EBITDA before restructuring expenses increase by EUR 62 million to EUR 774 million. The EBITDA margin before restructuring expenses improved accordingly by 0.6 percentage points to reach 14.4 percent and meets our communicated target of more than 14.0 percent. This is the fourth year in a row that we have increased our earnings. We are well on our way to achieving the target for 2026 of more than 15 percent. The increase in ROCE (Return on Capital Employed) from 31.8 percent percent to 32.7 percent rounds out our success for the 2023 financial year. It demonstrates our efficient capital utilization and shows an attractive return on capital," said Stefan Klebert.
Despite a 3.7 percent decline in order intake to EUR 5.5 billion, organic growth remained positive at 0.8 percent. The order backlog remained robust at EUR 3.1 billion, reflecting ongoing demand for GEA's offerings. Klebert expressed gratitude to GEA's employees for their exceptional dedication and highlighted the swift appointment of Bernd Brinker as the new CFO, expected to leverage his extensive financial experience for GEA's future growth.
