EQS-News: GEA achieves mid-term financial targets ahead of schedule and announces ambitious plans for 2030

Capital Markets Day

GEA achieves mid-term financial targets ahead of schedule and announces ambitious plans for 2030

• Financial targets of Mission 26 growth strategy met two years earlier than planned
• Organic revenue to grow by an average of more than five percent annually up to 2030
• EBITDA margin to increase to between 17 and 19 percent by 2030 (2023: 14.4 percent), with return on capital employed (ROCE) targeted to rise to more than 45 percent (2023: 32.7 percent)
• Share of revenue attributable to sustainable solutions set to grow to more than 60 percent of total revenue by 2030 (2023: 41.5 precent)

Duesseldorf (Germany), October 2, 2024 – GEA unveils its Mission 30 Group strategy at today’s Capital Markets Day. The comprehensive plan details how GEA will continue to drive profitable growth and significantly expand the company’s share of sustainable solutions until 2030. AI-supported processes and new business models will play an increasingly important role in achieving this. Among the new mid-term targets announced, the Group plans to grow organic revenue by an average of more than 5 percent annually up to 2030. In addition, the EBITDA margin is expected to reach 17–19 percent, with the return on capital employed targeted to rise to more than 45 percent.

“GEA has performed exceptionally well in recent years,” explains CEO Stefan Klebert. “We are poised to meet the financial targets set in 2021 – when we launched Mission 26 – by the end of 2024, two years ahead of schedule. With Mission 30, we continue on our path of steady improvement, setting strategic milestones for future success. Our focus is on growth drivers such as digital solutions, resource-saving innovations and a strong service business, which will all contribute to further increasing our profitability.” 

Sustainability and technological expertise to drive growth

Building on its leading market position as a system supplier for the energy-intensive food, beverage and pharma industries, GEA will further expand its portfolio of sustainable customer solutions and services as part of the Mission 30 strategy.

These solutions and services encompass four key areas: the development of climate strategies for customers, production process decarbonization, “net-zero” process line solutions as well as process optimization through digital applications. By focusing on these four areas, the company aims to significantly increase the share of total revenue generated by sustainable solutions to more than 60 percent by 2030 (2023: 41.5 percent).

“GEA has firmly established itself as a sustainability pioneer,” says CEO Stefan Klebert. “This leading position lends us a long-term competitive advantage as well as creating considerable growth potential. Our purpose, ‘Engineering for a better world’, drives our actions and powers our innovations.”

At the same time, GEA foresees future growth in the field of alternative proteins, which hold the promise of feeding a growing global population with fewer resources. From 2030, the group expects order intake in the new food business to reach at least EUR 400 million per year.

Digitalization and artificial intelligence underpin Mission 30

Today, more than 7,000 GEA machines across 50 countries are already connected via the GEA Cloud. This creates a solid foundation for the sale of AI-based applications and solutions. With Mission 30, GEA intends to increase the number of connected machines to over 35,000 by 2030. This equates to an 80 percent connection rate for customers installed machinery which is enabled for digital applications.

“Demand for digital customer solutions is growing rapidly,” explains GEA Chief Digital Officer Tom Oelsner. “And GEA comes prepared. Our solutions offer 24/7 availability and they enhance our customers’ productivity and sustainability – whether through intelligent assistance, autonomous process controls or software solutions.” GEA expects the revenue generated from the sale of digital solutions to reach more than EUR 200 million by 2030 (2023: EUR 67 million). This corresponds to a compound annual growth rate of approximately 20 percent.

Service business: A profitable pillar with a vision for the future

GEA’s service business continues to write its success story through an expanded offering. The “Performance Partnership Program” relies on more comprehensive service agreements and digital innovations to strengthen customer loyalty and extend the operational life of machinery, thereby also contributing to greater sustainability. On this basis, the share of revenue generated by the service business is anticipated to rise to 40 percent by 2030 (2023: 38 percent). That corresponds to service revenue of approximately EUR 2.9 billion by 2030 (2023: EUR 1.9 billion), and an average annual organic growth rate of more than six percent. 

Harmonization and process optimization significantly boost profitability

As a further component of Mission 30, a global transformation program will be rolled out to harmonize and more closely align the areas of production, purchasing and supply chain management. “Our initiative to reduce manufacturing costs will generate synergies, leading to major cost savings, while at the same time sharpening our competitive edge,” explains Chief Operating Officer Johannes Giloth. GEA expects the program’s net contribution to EBITDA to reach EUR 120 million by 2030.

Additionally, the Group aims to reduce the share of general administrative expenses to below 10 percent by 2030 (2023: 11.4 percent). In large part, this is to be achieved through a three-point program. The global harmonization of ERP systems through the Transform360 program will help realize significant efficiency gains. At the same time, further positive effects are anticipated by optimizing internal processes and structures as well as automating business processes. Overall, these measures will contribute an improvement potential of EUR 100 million by 2030 with a corresponding increase in the EBITDA margin of around 1.5 percentage points.

“Implementing Mission 30 will also give a substantial boost to our free cash flow. We are aiming for a cumulative total of more than EUR 4 billion between 2024 and 2030,” says CFO Bernd Brinker. “Added to this, ERP harmonization and lean processes will make GEA even more agile and pave the way for efficient growth.”

Sustainable growth for long-term success

Thanks to its leading positions in attractive and stable markets, recognized sustainability leadership, rapidly expanding service business, innovative prowess and digitalization expertise, GEA is well poised to achieve its strategic goals by 2030.

“We firmly believe that, with Mission 30, we will continue to create value for our shareholders, employees, customers and society over the long term,” says CEO Stefan Klebert. “Our clear focus on sustainable, profitable growth means we can maintain our success while at the same time making a positive contribution to our planet.”

Further information on Mission 30 and the full presentation of the Capital Markets Day are available at Investor Relations (gea.com).
 

• Further information about GEA
• To the GEA Press page
• To the GEA Media Center
• Background information on current topics can be found at Features
   

Media Relations

Lilian Schmalenstroer
Peter-Müller-Str. 12, 40468 Düsseldorf, Germany
Phone +49 211 9136-2090
[email protected]
 

About GEA

GEA is one of the world’s largest systems suppliers for the food, beverage and pharmaceutical sectors. The international technology group, founded in 1881, specializes in machinery and plants as well as advanced process technology, components and comprehensive services. With more than 18,000 employees, the group generated revenue of more than EUR 5.4 billion in over 150 countries in fiscal year 2023. GEA plants, processes and components enhance the efficiency and sustainability of customers’ production processes across the globe. They contribute significantly to the reduction of CO₂ emissions, plastic usage, and food waste. In doing so, GEA makes a key contribution toward a sustainable future, in line with the company’s purpose: “Engineering for a better world”.

GEA is listed in the German MDAX and the European STOXX® Europe 600 Index and is also among the companies comprising the DAX 50 ESG, MSCI Global Sustainability, the Dow Jones Sustainability World and Dow Jones Sustainability Europe Indices.

More information can be found online at gea.com.

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