In this Research Note, we examine Kieback&Peter, one of the long-established German providers of building automation solutions and services. This analysis is based on their February 2022 filing of their 2020 company accounts at the German Company Registry and more recent press releases.
Kieback&Peter GmbH & Co. KG was founded in 1927 in Berlin, Germany and currently reports over 1,400 employees and 50 locations worldwide. In January 2020, the CEO and Chairman of the Board, Christoph Ritzkat acquired a majority stake in the business from the Laeger family, as previously reported.
The company’s portfolio ranges from the planning and implementation of simple room automation to holistic solutions for smart buildings with integrated energy and building management. Using software and hardware, engineers, technicians, project managers and consultants integrate building technology such as heating, ventilation, air conditioning and fire protection into one optimized system and provide support directly on-site or via secure online services.
The group manufactures building automation products including sensors, actuators and controllers at the Mittenwalde site in Germany where it has been decided to concentrate production. The former production site at Trier was closed in 2020 in order to achieve process and cost savings.
Accounts filed at the German Company Register in February 2022 reported Kieback&Peter’s 2020 financial results and 2021 expectations, as of 10th September 2021:
- The company saw revenue losses and a reduction in profitability due to the pandemic. 2020 revenue fell by EUR 15.2 million to EUR 192.8 million, corresponding to a reduction of 7.3% versus 2019. The EBIT margin fell from 2.7% in 2019 to 2.5% in 2020. The operating result (EBIT before extraordinary effects) decreased compared to the previous year by EUR 0.5 million to EUR 5.3 million.
- Measures introduced including optimization of risk management, cost savings and optimized use of resources for future investments were expected to lead to a sustained improvement in the economic and financial situation.
- For the 2021 financial year, an unconsolidated order intake of EUR 226.9 million and sales of EUR 217.8 million are expected. Memoori notes that this equates to 13% revenue growth in 2021, exceeding pre-pandemic revenues in 2018 of EUR 214.4 million.
- For the 2021 financial year, an overall operating result (EBIT before extraordinary effects) of EUR 6.3 million and thus an improvement of EUR 1.0 million was forecast. With a positive annual result in the low single-digit million range is also calculated.
Kieback&Peter operates in around 50 countries in Germany and abroad. However, the Group’s most important market is in Germany which accounted for 85% of revenues in 2020.
As of 14th June 2021, Dr. Riedel Automatisierungstechnik GmbH was fully absorbed by its parent company Kieback&Peter GmbH & Co. KG, following the acquisition of the Berlin smart home firm In May 2018. With the closing of this strategic decision, they have consolidated services in the field of residential building management under one roof.
In 2022, a new IT Business Services department was established at the Berlin headquarters, strengthening in-house systems integration expertise, supporting Kieback&Peter branches by responding to their customers' specific IT questions and developing the most appropriate solution in each case.
Kieback&Peter has maintained its position as a key player in the German building automation sector for many years, despite strong competition from Siemens, Bosch and Sauter.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.