Koenig & Bauer suspends dividend payment for the financial year 2019

The decision approved by the company board

90
Koenig & Bauer
Koenig & Bauer AG’s 95th AGM took place as a virtual event for the first time

Germany’s Koenig & Bauer has decided to suspend the dividend payment for the financial year 2019 and carry forward the profit generated by the holding company Koenig & Bauer AG to new account.

“With a large majority, the shareholders confirmed the management and supervisory boards’ proposal to suspend the dividend payment for the financial year 2019 and to carry forward the retained profit generated by the holding company Koenig & Bauer AG to new account,” the company said.

The announcement was made during the company’s first virtual annual general meeting. In addition to details of the group’s business performance in 2019 and in the first quarter of 2020, the numerous product innovations and the successfully launched offensive for digitisation were the main topics were the topic of discussion during the AGM.

The management board reported that the coronavirus pandemic, which has been spreading rapidly since January, has already had a considerable impact on revenue and earnings in the current financial year.

“Our broad product portfolio with a significant share of revenue in system-relevant packaging printing, the robust, increasingly digital service business and our sound balance sheet with a high equity ratio limit the risk potential. With the corona crisis management established in March, we are working to actively counter this extraordinary situation,” CEO Claus Bolza-Schünemann said.

He said that the company’s action plan focuses on reliable customer support, cost and investment discipline and securing liquidity. “There were almost no restrictions on the supply chain. Short-time working has, however, been in place at different locations since 1 April 2020 due to capacity utilisation. Under the currently uncertain general conditions, the impact on revenue and earnings in the 2020 financial year cannot yet be quantified.”

Performance 2024 efficiency program is flanked by applying for a KfW loan

Bolza-Schünemann said that in parallel to the corona crisis management, Koenig & Bauer is working intensively on the Performance 2024 efficiency program, evaluating various scenarios.

In addition, improvements in working capital and cash flow are at the top of the agenda alongside the strategic focus on packaging printing and digital services, he said. To strengthen the stability and strategic flexibility of the group, the management board and the supervisory board decided to apply for a flexibly repayable KfW loan with a volume of up to €120m to supplement the existing syndicated credit lines (Direct Participation in Syndicated Loans).

“Among others, no dividend distributions are permitted during the term of the KfW loan. After the plans for increasing the operating profitability and performance of the group have been adopted, we will report promptly on the targets and costs of the Performance 2024 efficiency programme,” he said.

As you join us today from India and elsewhere, we have a favour to ask. Through these times of ambiguity and challenge, the packaging industry in India and in most parts of the world has been fortunate. We are now read in more than 90 countries as our coverage widens and increases in impact. Our traffic as per analytics more than doubled in 2020 and many readers chose to support us financially even when advertising fell to pieces.

As we come out of the pandemic in the next few months, we hope to again expand our geography and evolve our high-impact reporting and authoritative and technical information, with some of the best correspondents in the industry. If there were ever a time to support us, it is now. You can power Packaging South Asia’s balanced industry journalism and help to sustain us by subscribing.

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here