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Subscription model boosts Heidelberg

Wednesday, 08 August 2018
By Print 21 Online Article
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Press giant Heidelberg has started off the 2018/2019 financial year with solid growth in net sales, citing high demand for its newly established pay-per-use subscription model and the launch of the Primefire digital press.


Incoming orders improved in the first quarter (April 1 to June 30) by 6 percent to €665 million. The order backlog grew by 18 percent to €714 million (from the previous year’s €603 million).


Heidelberg also recorded growth in traditional business during the first quarter, with group sales rising by 9% in total to €541 million. Earnings before tax were up from €14 million to €20 million. 


The first quarter brought in the first revenues raised from subscription contracts, which allow printers to install machinery on five-year contracts, with the cost of consumables and maintenance known in advance. The company says the strong demand for the new subscription model is “undiminished” and has produced additional contracts in the quarter under review.

Meanwhile, the first two models of the 
Primefire digital press were delivered to packaging customers in US and Switzerland. 


“The strong customer demand for our new subscription portfolio and digital packaging printing presses has exceeded our expectations,” says Rainer Hundsdörfer, CEO of Heidelberg. “Heidelberg is driving digitization in the entire industry. The establishment of the new business models is proceeding to plan and will at first make a relatively modest contribution to net sales and result, albeit one that will increase significantly in the medium term.”


Heidelberg CFO Dirk Kaliebe says: “Our financing structure is very solid. We have low leverage and are maintaining liquidity reserves we can use to finance our planned investments in new business models and the company’s digital transformation.”



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