Lenze 2020+ growth strategy appears to be taking off: Lenze Group again achieves record revenue figures and EBIT
22 November 2018
In a generally positive market environment, the Lenze Group has successfully continued its strategic course of growth in the financial year 2017/2018 and again exceeded its key financial targets. Group revenue increased in the reporting year by 9.2% to a new record of €741.0 million, far surpassing original expectations. Organic revenue growth, adjusted for currency effects, amounted to 11.2%. Operating results (EBIT) also reached a new high, rising by 12.3% to €65.7 million. The EBIT margin rose to 8.9%. Net income grew by 21%, in particular as a result of a favourable tax ratio performance.
Future digital topics, new products, and intensified sales as growth drivers
Building on decades of mechatronics experience, Lenze is bolstering its position as a global systems partner for integrated machine automation as part of implementing its 2020+ strategy. Thanks to scalable hardware and modular software, Lenze is increasingly taking a leading role here.
The strategic divisions, Mechatronics and Automation Systems, are benefiting from the company’s growth momentum. The revenue of the forward-thinking digital division likewise developed positively in the reporting year. Setting the pace in global factory automation, Lenze has a considerable competitive advantage with its two subsidiaries, the Bremen CPQ specialist Encoway and the software company Logicline based in Sindelfingen.
Lenze once again invested in developing global sales in the year under review and focused its sales activities specifically on five high-growth sectors: automotive, consumer goods, converting and printing, intralogistics, and textiles. In these focus industries, the company is able to most effectively implement its application and market competencies in highly specialised production processes, Lenze again demonstrated its technological and innovative strengths in the past financial year in more than 1,000 completed customer projects.
Profitability increases
Once again, the Group was able to increase its profitability. This is essentially due to the strong revenue growth. Operating result (EBIT) rose by 12.3% to EUR 65.7 million, reaching a new high. The EBIT margin increased to 8.9%. The return on capital employed (ROCE) grew in the financial year 2017/2018 by 1.2 percentage points to 23.5% (previous year: 22.3%).
