IBP FINANCE
Krones Continues its Profitable Growth Path in Third Quarter
Krones continued its profitable growth path in the third quarter of 2025 despite the
macroeconomic uncertainties.

The company’s markets are generally
less affected by economic fluctuations
and Krones’ customers continue to show
robust willingness to invest.

Krones’ order intake developed
positively between July to September
2025, increasing by 6.2% on the preceding
quarter to €1,374.3m. Compared to
the third quarter of the previous year
€1,323.2m, order intake increased by
3.9%. Order intake over the first nine
months, at €4,104.7m, matched the very
high level of the previous year €4,116.1m.

The order backlog of €4,286.8 million
as of 30 September 2025 was on par
with the end of 2024 €4,289.5m. This
continued very large order backlog
enhances Krones’ planning certainty and
ensures production capacity utilisation
in the lines and project business until
mid of the third quarter of 2026.

Revenue from July to September
2025 improved by 4.7% year on year to
€1,380.9m. This resulted in a book-to-
bill ratio – the ratio of order intake to
revenue – of 1.00 in the third quarter.

In the first nine months, revenue went
up by 6.0% to €4,107.4m, in line with
target. The company’s revenue was also
affected by the weakness of the dollar
against the euro.

Krones’ profitability in the third
quarter benefited from increased
efficiency in production. Earnings
were also positively impacted by the
implementation of strategic measures
to improve performance and the
company’s cost structures. The third-
quarter earnings figures were affected
by expenses for the drinktec trade
fair, which was in the high single-digit
million-euro range. Despite this effect,
Krones generated a disproportionately
large increase in earnings before interest,
taxes, depreciation and amortisation
(EBITDA) to €142.2m between July and
September 2025 (previous year: €134.9m).

24 The EBITDA margin improved to 10.3%
(previous year: 10.2%). Excluding the
expenses for drinktec, the EBITDA margin
for the third quarter was at the upper
end of the target range of 10.2% to
10.8% for the full year 2025. Over the
first nine months of 2025, the EBITDA
margin rose year on year from 10.1%
to 10.5%. The effects of the acquisition
of Netstal Maschinen AG had a slight
dilutive impact on the margin in the first
three quarters of 2025.

Earnings before taxes (EBT) increased
by 9.7% to €302.3m between January
and September 2025. The EBT margin
consequently rose from 7.1% to 7.4%.

On the bottom line, Krones generated
consolidated net income of €213.7m
in the first nine months of 2025, up
6.5% year on year. Earnings per share
improved to €6.75 (previous year: €6.35).

Krones remains realistically optimistic
for the 2025 financial year, despite the
difficult global economic situation. The
first nine months of 2025 confirm this
assessment. However, the business
environment nevertheless remains
challenging for Krones. It is difficult to
predict what impact the various tariff
policies and trade agreements between
the USA and key trading partners
will have on world trade and global
growth. This uncertainty is influencing
companies’ investment decisions
worldwide, at least over the short-term.

Geopolitical risks also persist in Europe,
the Middle East and other parts of the
world. Material shortages and problems
in global supply chains as a result of
trade conflicts and military action
remain a source of uncertainty.

Based on the current expected
development of the markets relevant
to Krones, and after the positive first
nine months, the company confirms its
financial targets for the full year 2025,
despite the global uncertainties.

Well Positioned for
Continued Growth
The Board of Directors conducted
a strategic review of SIG’s
business following the Company’s
AGM in April 2025.

The review confirms that SIG’s
strategic core is very well
positioned for continued success
as a global leader in sustainable
aseptic system solutions in carton.

Leveraging its global platform,
expertise, and technology, the
Company will accelerate its efforts
to become a global aseptic system
solutions leader in bag-in-box and
spouted pouch as well.

To support this strategy
and further enhance the mid-
term financial performance
and competitiveness, SIG is
implementing a transformation
program including:
Streamlining and focusing
the portfolio on higher-margin,
higher-growth aseptic businesses,
initiating the divestment of
smaller non-aseptic businesses
and stepping up operational
efficiency through a performance
improvement program.

The non-recurring charges
associated with these activities are
expected to be in the range of €310-
360m pre-tax, of which €75-100m
are expected to impact adjusted
EBITDA and adjusted net income.

Approximately 90% of the non-
recurring charges are non-cash
and mostly relate to impairments
of customer relationships,
technologies, and equipment.

The ongoing challenging market
conditions and the transformation
program are expected to impact
the Group’s growth in constant
currency and constant resin
in the second half of 2025. SIG
now expects slightly negative to
flat revenue growth at constant
INTERNATIONAL BOTTLER & PACKER | DECEMBER 2025



FINANCE
currency and constant resin for 2025
(previously: lower half of a 3-5% range).

Excluding the non-recurring
charges, the adjusted EBITDA margin
is expected to be in the range of
24.0-24.5% (previously: lower end
of the 24.5-25.5% range), reflecting
lower volumes. Including the above-
mentioned non-recurring charges, the
adjusted EBITDA margin is expected to
be around 21%.

Given the Company’s increased
focus on capital discipline, including its
priority to reduce debt levels, the Board
of Directors proposes to pause the cash
dividend for the year 2025.

Following the Q3 trading update on
October 28, 2025, the Company will
host an Investor Update in Zurich on
October 30, 2025. At that meeting, SIG’s
chair Ola Rollén and management will
present the Group’s strategic direction,
capital allocation priorities and provide
an update on mid-term guidance.

Sazerac to Invest $38m in Expansion at Indiana Site
Sazerac Company is planning to spend over $38m in expanding operations at its US facility in New Albany, Indiana.

The investment includes over $35m in new equipment and over $2m in real property improvements, according to a statement.

Amber Beverage UK Buys Ten Locks
Amber Beverage UK (ABUK) has acquired the assets of Ten Locks, the Manchester-
based distributor owned by Kingsland Drinks.

The agreement hands ABUK immediate responsibility for the UK distribution of the
Ten Locks portfolio.

Ten Locks distributed products including El Tequileño Tequila, Lind & Lime gin,
Banhez mezcal and non-alc brand Three Spirit.

ABUK, part of the Luxembourg-headquartered Amber Beverage Group, distributes
brands including Flor de Caña rum, Faustino wine from Rioja and Fortaleza Tequila.

It also handles Amber Beverage brands, including Moskovskaya vodka and The
Irishman whiskey, in the UK.

In a statement announcing the deal, ABUK CEO Sam Thackeray, said, “In what
is a distinctly tricky time for the drinks trade and hospitality industry, with all the
negative news and legislative and fiscal challenges, it is wonderful to be able to focus
on growth through new, dynamic brands and highly ambitious people.”
Heineken Expects its Sales Volumes to Fall this Year
Heineken predicted its volumes would ‘decline modestly’ in 2025 following a
‘challenging’ three months to the end of September.

Third-quarter revenue dropped 4% to €8.71bn and dipped 0.1% on an organic basis.

The company’s volumes fell 3.8% during the quarter as Heineken’s beer volumes
declined more than 4% amid lower sales in Europe and North America.

Heineken said its ‘net revenue per hectolitre’ increased 3.6% thanks to price
increases and the sale of more ‘premium’ products.

Heineken said it expects its organic operating profit to land ‘towards the lower
end’ of its target of 4-8% growth.

“Macroeconomic volatility persisted as anticipated and became more pronounced
in the third quarter, creating a challenging environment, resulting in a mixed
performance,” said Heineken Chairman and CEO Dolf van den Brink.

“Our portfolio continues to evolve positively, with market share gains in a
substantial majority of our markets, and Heineken and premium volume growing
year-to-date. Furthermore, we are future-proofing the business by accelerating
digital investments and reshaping our organisation.”
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Applied Nutrition Gives
Upbeat Revenue Update
UK sports-nutrition firm Applied
Nutrition has said the company
expects its revenue for its 2025 and
2026 fiscal years to be ‘ahead of
market expectations’.

In a trading update, the maker of
protein powders, bars and nutrition
drinks provided a provisional estimate
of its earnings for its financial year that
recently closed on 31 July.

Applied Nutrition anticipates revenue
to have increased by 24% to £107m. The
figure exceeds market forecasts of £100m.

The company attributed the growth
to ‘strong’ trading in the second half
of the year, which contributed around
£60m to its revenue.

Looking ahead, Applied Nutrition
expects revenue for the financial year
ending 31 July 2026 to also surpass
market expectations.

The board expressed confidence in the
company’s B2B-focused business model,
stating that its core strengths will ‘continue
to drive sustained revenue growth and
strong profitability over the long-term’.

Thomas Ryder, the CEO of Applied
Nutrition, said, “We are proud to report
that we have exceeded the guidance we
gave at our IPO, with our first full-year
results expected to come in ahead of
market expectations.”
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