Heidelberger Druckmaschinen AG (HEIDELBERG) has reported a strong start to the new financial year 2024/2025, with a significant increase in incoming orders. The technology company’s incoming orders for the first quarter (April 1 to June 30, 2024) exceeded expectations at €701 million, surpassing its own forecast of €650 million. This represents a 19% increase from the previous year’s first quarter results of €591 million.
The company attributes this growth to the success of the drupa industry trade fair, which took place during this period. The best order value since 2016 has set a solid foundation for the remainder of the financial year, with a high order backlog of €923 million as of March 31, 2024 (compared to €652 million on the same date last year). Europe (+25%) and the Americas (+30%) were the regions that experienced the strongest growth, while Asia saw a more modest increase of 3% due to the strong performance of the Print China trade fair in the previous year.
Jürgen Otto, CEO of HEIDELBERG, expressed confidence in the company’s future based on the strong recovery in order intake. “The pleasing order backlog from the drupa trade fair will lead to rising sales in the following quarters compared to Q1,” he stated. “At the same time, we are working on our cost situation and personnel costs, which are generally too high.”
The company’s sales for the first quarter were €403 million, a decline from the previous year’s first quarter sales of €544 million. This was expected, as many clients were hesitant to invest ahead of the drupa trade fair. The adjusted operating result (EBITDA) also decreased by €51 million to €–9 million compared to the same quarter of the previous year, resulting in an EBITDA margin of –2.3% (compared to 7.7% in the previous year). Net result after taxes was €–42 million, compared to €10 million in the first quarter of the previous year. Free cash flow was negative at €–103 million, primarily due to the quarterly loss, an increase in inventories due to the high order intake, and seasonal effects.
Tania von der Goltz, CFO of HEIDELBERG, acknowledged the after-effects of the order slump in the third quarter of the previous financial year. “Despite the expected improvements in sales and earnings in the second half of the year, we will continue to work on our costs and efficiency,” she stated. “We expect to achieve the previous year’s result in the current year.”
The Print Solutions segment saw a significant increase in drupa-related incoming orders of approximately 21%, while sales decreased by 23% due to the low order intake in the third quarter of the previous year. The Packaging Solutions segment experienced a 17% increase in incoming orders, but sales decreased by 29% as expected.
At drupa, HEIDELBERG positioned itself as a total solution provider for the printing industry, offering both offset and digital solutions. The company also announced a cooperation with Canon to tap into the growing market for digital industrial commercial printing. HEIDELBERG aims to significantly increase its sales in this area in the medium term.
Despite the after-effects of the order slump, HEIDELBERG is confident in its forecast for the 2024/2025 financial year, based on the strong order intake. The company expects stable earnings development and similar sales figures, assuming that the global economy does not grow more slowly than predicted by economic research institutes.
For more information about the company, please visit the Investor Relations and Press Portal of Heidelberger Druckmaschinen AG at www.heidelberg.com.
For further information:
Corporate Communications
Oliver Claas
Phone: +49 6222 82-67179
E-Mail: Oliver.Claas@heidelberg.com
Thomas Fichtl
Phone: +49 6222 82-67123
E-Mail: Thomas.Fichtl@heidelberg.com
Investor Relations
Maximilian Beyer
Tel: +49 (0)6222 82-67120
E-Mail: Maximilian.Beyer@heidelberg.com
Important note:
This press release contains forward-looking statements based on assumptions and estimates made by the management of Heidelberger Druckmaschinen Aktiengesellschaft. While the company management believes these assumptions and estimates are accurate, actual future developments and results may vary significantly from these assumptions and estimates due to various factors, including changes in the overall economic situation, exchange rates, interest rates, and the graphic arts industry. Heidelberger Druckmaschinen Aktiengesellschaft makes no guarantee and assumes no liability for any discrepancies between future developments and the actual results achieved in the future, as outlined
