HEIDELBERG RECOVERY CONTINUES THROUGH Q1

The world’s biggest offset press manufacturer Heidelberg saw significant improvements in both sales and operating profitability in the first quarter, thanks to what it says is the continued recovery of the markets in almost all regions.

The Group’s sales figures between April and June grew by 20 per cent year on year to €530m, with the growth largely attributed to the rise in the number of new machines delivered. All segments increased their sales during the first quarter. Growth in Packaging Solutions, at around 28 per cent, was particularly strong.

The regions of Europe and North America recorded particularly positive developments. By contrast, results in China were sometimes weaker compared to the previous year, due to the extensive lockdowns in the economically relevant cities. Australian orders during the period included the ten-colour XL-106 for Southern Impact.

Thanks to higher sales and the ongoing reduction of structural costs, Heidelberg significantly improved its operating result (EBITDA) in the first quarter, almost doubling last year’s €20m to €35m. The net result after taxes was positive during the period under review, and amounted to €5m in the black, compared with the previous year’s loss of €14m.

“The positive start to the new financial year gives us cause to be cautiously optimistic as we look forward,” commented Dr Ludwin Monz, CEO of the company. “Provided there is no downturn in the general economic environment, we are confident we will reach the annual targets we have set. We will support our growth by expanding our products and services for digital printing in the label market and launching new, networking-capable wallboxes in the electromobility sector.”

Despite ongoing global uncertainties, Heidelberg believes it has good opportunities for profitable growth in the 2022/23 financial year, too. The company continues to expect sales figures to grow to around €2.3bn, up from €2.18bn last year, provided there is no significant downturn in the general economic environment. Profitability is also expected to improve further. Heidelberg is forecasting further improvement in the EBITDA margin to at least 8 percent for the 2022/23 financial year, with the net result after taxes also expected to increase slightly compared to 2021/22 when it hit €33m.

Incoming orders of €607m in the first quarter showed a return to the pre-pandemic 2019/2020 level of €615m – even though business in China was curbed by the two-month Covid-19 lockdown in Shanghai, and the war in Ukraine led to weaker demand in Eastern Europe. It was not quite possible to reach the previous year’s high figure of €652m, as this had been unusually high due to the China Print trade show in 2021. However, the order backlog saw a further significant increase of 15 per cent during the first quarter, totalling €969m on June 30, up from the previous year’s figure of €840m.

With the significant EBITDA increase to €35m, more than double the same quarter in the previous year which was €15m, the EBITDA margin rose from 3.5 percent to 6.7 per cent. The substantially higher sales volume with an improved price quality of orders had a positive impact in this regard, as did the sale of a site in St Gallen, which generated a slightly double-digit million euro sum. By contrast, however, increased material costs and the temporary closure of the plant in Shanghai had a negative effect.