The Frankenthal-based pump and valve manufacturer KSB closed the 2023 financial year with record figures for order intake and sales revenue. At 7.9 %, the EBIT margin (earnings before interest and taxes) even reached the level targeted for 2025 in 2023. Order intake rose significantly by + 3.4 % to € 2,960 million in the 2023 financial year. Within the segments, the Valves segment increased its order intake by 9.1% to € 393 million, while order intake in the KSB SupremeServ segment rose by 8.0% to € 990 million. At € 1,577 million, order intake in the Pumps segment remained almost at the previous year's level.
KSB increased its sales revenue by + 9.5 % to € 2,819 million in the 2023 financial year. The KSB SupremeServ segment increased its sales revenue by 11.0% to € 944 million. The Pumps segment achieved sales revenue growth of 8.9 % to € 1,514 million. With growth of 8.5% to € 361 million, the Valves segment recorded a similar rate of increase.
The increase in the EBIT margin to 7.9 % was characterised in particular by sales revenue growth and the margin strength of the KSB SupremeServ segment, which bundles the spare parts and service business. KSB significantly improved earnings before financial result and income taxes by 32.4 % to € 223.9 million. The KSB SupremeServ segment in particular contributed to this with growth of 22.7 % to € 179 million. In the Pumps segment, EBIT increased by 88.7 % to € 52 million. The Valves segment achieved EBIT of € - 7.5 million due to project provisions.
Upswing despite tense economic situation
KSB increased its global investments in the 2023 financial year from € 120 million (2022) to € 136 million. The focus was on increasing productivity, expanding capacity, digitalisation and sustainability. The fittings manufacturer made the largest share of investments in Europe, followed by Asia and America.
With regard to the significant increase in key financial figures, Dr Stephan Timmermann, CEO, says: “The 2023 financial year was characterised by ongoing global political unrest and inflation-related uncertainty. We tackled the many challenges with confidence and not only kept the company on a stable course, but also continued to develop it forwards.” With the “Mission Ten30” corporate strategy adopted in the financial year, KSB is bundling numerous measures and targets in order to generate a double-digit return on sales by 2030.
Increase in the dividend
KSB expects geopolitical tensions to persist in the 2024 financial year, which the company cannot completely escape. Timmermann emphasises: “KSB is broadly and resiliently positioned. We are confident that we will continue to develop the company positively in the 2024 financial year.”
KSB shareholders are to participate in the record result for the 2023 financial year to a special extent. The Management Board and the Supervisory Board will propose to the Annual General Meeting on 8 May that a dividend of € 26.00 per ordinary share and € 26.26 per preference share be distributed. KSB shares have been traded on the SDAX since December 2023 and have also been accessible to a broader, international group of investors in the Prime Standard since February 2024.
