By Helena Smolak
GEA Group, a leading supplier of systems and components to the food-and-beverage industry, announced a rise in net profit for the third quarter despite a slight decline in sales. Higher profitability offset the impact of currency headwinds, resulting in a net profit of 120.8 million euros ($129.3 million) compared to EUR107 million in the same period last year.
Sales for the quarter totaled EUR1.351 billion, slightly down from EUR1.353 billion. However, on an organic basis, revenue grew by 6.9%, showcasing the company's strong performance.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) before restructuring expenses increased by 4.2% to EUR207 million. This improvement led to a 0.6 percentage point increase in the corresponding EBITDA margin, which now stands at 15.3%.
Despite facing negative currency effects, GEA reported a 9.1% decrease in order intake to EUR1.25 billion during the quarter. On an organic basis, the decline was 1.7%.
Looking ahead, GEA Group remains optimistic about its full-year performance. The company anticipates organic sales growth to exceed 8% and forecasts EBITDA before restructuring expenses between EUR730 million and EUR790 million at constant exchange rates. Additionally, GEA aims to achieve an EBITDA margin before restructuring expenses of at least 14%.
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