• Sales in Q3 remained at the same level as the previous year, but the adjusted EBITDA margin improved significantly to 9.2 percent.
• Incoming orders increased by 8.3 percent in Q3 and by 7.7 percent after nine months compared to the previous year.
• A high order backlog indicates a strong final quarter.
• The full-year forecast has been confirmed, with the adjusted EBITDA margin expected to rise to around 8 percent in FY 2025/2026.
• Packaging continues to drive growth.
• The growth strategy promises sales potential of over €300 million in the medium term.
During the first nine months of the 2024/2025 financial year, Heidelberger Druckmaschinen AG (HEIDELBERG) reported key figures that were in line with the company’s expectations. The third quarter saw significant improvements in key operating results compared to the first half-year and the same quarter of the previous year. The adjusted EBITDA margin for the third quarter was 9.2 percent, a notable increase from the 5.7 percent reported in the equivalent quarter of the previous year. Sales for the 2024/2025 financial year have shown a consistent increase from quarter to quarter, reaching €594 million in the third quarter, matching the figure from the previous year. Incoming orders for the third quarter also saw an 8.3 percent increase to €550 million, outperforming the mechanical and plant engineering sector as a whole. The EMEA region and the Packaging Solutions segment were the biggest contributors to this growth, with the company’s high order backlog of €903 million setting the stage for a strong final quarter.
“We have succeeded in continuously improving our sales and operating result quarter by quarter in a difficult economic environment. Thanks to our high order backlog, we can confirm that we will achieve our targets for the year” said Jürgen Otto, CEO of HEIDELBERG. “And we will drive down costs further still in the coming year by implementing our plan for the future and boosting efficiency. This cost discipline will have a positive effect on our profitability, which should improve further in the next financial year.”
The company is expecting a significant increase in sales in the fourth quarter of the current financial year due to strong order levels. The adjusted EBITDA after nine months was €86 million, down from €135 million in the previous year, with an adjusted EBITDA margin of 5.7 percent, compared to 8.0 percent in the previous year. The low sales volume in the first quarter and high losses contributed to this decrease. However, in the third quarter, adjusted EBITDA increased to €55 million from €34 million in the previous year, with an improved margin of 9.2 percent. Net provisions of €29 million were established in the third quarter for planned labor cost reduction measures, resulting in a lower net result after taxes of €-7 million (previous year: €1 million) and €-42 million after nine months (previous year: €34 million).
After nine months, the free cash flow was € -97 million, in line with expectations (compared to € -54 million in the same period last year). In the third quarter, there was a significant improvement compared to the previous year, reaching a positive figure of € 4 million (compared to € -26 million in the equivalent quarter of the previous year).
“Our successful management of net working capital played a key role in achieving a positive free cash flow despite high inventories due to the order situation,” said HEIDELBERG CFO Tania von der Goltz. “The big improvements we are expecting in the results for the final quarter and the reduction of inventories by the end of the financial year will have a positive impact on the free cash flow,” she added.
The Packaging segment continues to drive growth
Orders in the Packaging segment have seen a significant increase, rising by approximately 11 percent to € 959 million for the first three quarters and by around 15 percent in the third quarter. The packaging market is experiencing a growing demand for sustainable, high-quality packaging, aligning with HEIDELBERG’s position as a systems integrator and total solution provider, further strengthening the company’s position in the packaging market.
“Packaging printing is the current growth sector for the printing industry, including HEIDELBERG. In particular, the product innovation around the Boardmaster for high-volume packaging printing meets customer needs,” said David Schmedding, Chief Technology & Sales Officer at HEIDELBERG. “We are looking to successively expand our business and our portfolio in this market by using automation, robotics, and software to offer our customers integrated end-to-end solutions for the entire manufacturing process,” he explained.
In the Print segment, incoming orders for the nine-month period increased by 4.4 percent to € 858 million.
Growth strategy promises sales potential of over € 300 million in medium term
HEIDELBERG aims to expand its market position by tapping into growth potential in its core market, including packaging, digital printing, software, and lifecycle business. The company’s cooperation with Canon for digital presses will significantly boost future sales, and it is also looking to expand its portfolio in the growing market for green technologies. This includes areas such as high-precision plant engineering, automotive industry, charging infrastructure and software, and new hydrogen technologies. The company’s medium-term goal is to position itself as a leading system supplier of charging solutions for use at companies and in public spaces in Europe, with overall growth potential amounting to over € 300 million by the financial year 2028/2029.
Despite the challenges outlined in the 2023/2024 Management Report, the company remains confident in its full-year forecast for 2024/2025. Sales are expected to remain steady at €2,395 million, with an adjusted EBITDA margin of 7.2 percent, in line with the previous year. With a strong order backlog and continued focus on margins and costs, the company is poised to meet its targets. The ongoing implementation of future plans and efficiency improvements are expected to drive the adjusted EBITDA margin to around 8 percent in the following financial year 2025/2026.
Confirmation of full-year forecast and projected increase in adjusted EBITDA margin to approximately 8 percent for FY 2025/2026
Based on the expectations and conditions outlined in the 2023/2024 Management Report, the company reiterates its forecast for sales in the 2024/2025 financial year to remain at the previous year’s level of €2,395 million, with an adjusted EBITDA margin of 7.2 percent. The company’s strong order backlog and continued focus on margins and costs provide a solid foundation for achieving its targets. The ongoing implementation of future plans and efficiency improvements is expected to drive the adjusted EBITDA margin to around 8 percent in the subsequent financial year 2025/2026, further enhancing HEIDELBERG’s profitability.
O firmie HEIDELBERG
Heidelberger Druckmaschinen AG (HEIDELBERG) to wiodąca firma technologiczna, która przez 175 lat stoi na innowacjach, jakości i niezawodności w inżynierii mechanicznej na całym świecie. Skupiając się na wzroście, HEIDELBERG jako dostawca kompleksowych rozwiązań napędza dalszy rozwój w obszarach takich jak druk opakowań, druk cyfrowy, rozwiązania oprogramowania oraz obsługa i materiały eksploatacyjne, aby klienci mogli osiągnąć maksymalną produktywność i efektywność. Firma skupia się również na rozwijaniu nowych obszarów biznesowych, takich jak precyzyjna inżynieria urządzeń zintegrowanych z kontrolą, technologią automatyzacji i robotyką, a także rosnące technologie ekologiczne. Dzięki silnej obecności międzynarodowej w około 170 krajach, kreatywnemu potencjałowi i wiedzy swoich około 9 500 pracowników, własnym zakładom produkcyjnym w Europie, Chinach i USA oraz jednej z największych globalnych sieci sprzedaży i serwisu, firma jest dobrze przygotowana do przyszłego wzrostu.
Obraz 1: Uśmiechy na twarzach, gdy Meinders & Elstermann staje się pierwszą firmą w Niemczech, która używa Jetfire 50 – od lewej do prawej: Dr. David Schmedding, Dyrektor Technologii i Sprzedaży w HEIDELBERG, Jens Rauschen, CEO Meinders & Elstermann, Stefan Kuper, Kierownik Sprzedaży Regionu Północnego w HEIDELBERG, oraz Frank Kropp, Kierownik Działu Badań i Rozwoju w HEIDELBERG.
– You can find the picture at AP –
For image material and more information about the company, visit the Investor Relations portal and the Press Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com.
It’s important to note that this press release contains forward-looking statements based on assumptions and estimates made by Heidelberger Druckmaschinen Aktiengesellschaft’s management. While the company believes these assumptions and estimates to be accurate, actual future developments and results may vary due to factors such as changes in the economic situation, exchange rates, interest rates, and within the graphic arts industry.
Heidelberger Druckmaschinen Aktiengesellschaft does not guarantee or assume liability that future developments and actual results will align with the assumptions and estimates in this press release.
Źródło informacji: pap-mediaroom.pl
