Koenig & Bauer AG announces that on the basis of its preliminary and as yet unaudited figures it achieved group revenue of €1,029m and preliminary consolidated earnings before interest and taxes (EBIT) of -€68m in the 2020 financial year. Adjusted for special items, preliminary consolidated EBIT stands at -€19m.
This means that Group revenue is significantly above the forecast issued for the 2020 financial year, which had indicated a figure of between €900 and 950m. Adjusted EBIT was also better than the forecast negative EBIT before special items of a figure in the mid-double-digit millions.
The reason for the higher revenue and the corresponding effect on EBIT is the adjustment to the group’s internal revenue recognition policy. In the course of preparing the consolidated financial statements, the company decided, after consultation with its new auditors, to retrospectively apply the group’s revised revenue recognition policy, which had previously been announced on 28 September 2020. The change also applies retroactively to the previous year’s figures, with the result that revenue from earlier periods, including the corresponding EBIT effects, are shifted into the future.
Under the revised revenue recognition policy, revenue from new printing presses is predominantly not recognised until the presses are placed in operation. “We expect to reduce volatility in revenue recognition of our new printing press business with the new accounting policy. This should also permit more balanced budgeting in the future. The retrospective adjustment gives us improved transparency and comparability with previous years,” says Dr Stephen Kimmich, CFO at Koenig & Bauer AG.
As a result of the adjustments, Group revenue increased by around €51m net and consolidated EBIT by around €8m in 2020.