{"id":16154,"date":"2025-02-14T12:43:39","date_gmt":"2025-02-14T12:43:39","guid":{"rendered":"https:\/\/cpmirror.com\/?p=16154"},"modified":"2025-02-14T12:43:39","modified_gmt":"2025-02-14T12:43:39","slug":"heidelberg-sees-clear-increase-in-profitability-in-third-quarter-of-financial-year-2024-2025","status":"publish","type":"post","link":"https:\/\/cpmirror.com\/index.php\/2025\/02\/14\/heidelberg-sees-clear-increase-in-profitability-in-third-quarter-of-financial-year-2024-2025\/","title":{"rendered":"HEIDELBERG sees clear increase in profitability in third quarter of financial year 2024\/2025"},"content":{"rendered":"\n

At Heidelberger Druckmaschinen AG (HEIDELBERG), key figures for the first nine months of financial year 2024\/2025 (April 1 to December 31, 2024) and the third quarter (October 1 to December 31, 2024) were in line with the expected developments communicated by the company. Especially in terms of the key operating results, the third quarter<\/strong> of the current financial year brought significant improvements compared with the first half-year and also with the equivalent quarter of the previous year. The adjusted EBITDA margin<\/strong> for the third quarter was 9.2 percent (equivalent quarter of previous year: 5.7 percent), with high capacity utilization and intensified cost-cutting measures having a particularly positive impact. Sales<\/strong> to date during financial year 2024\/2025 have increased from quarter to quarter. The figure of \u20ac 594 million for the third quarter matched the equivalent quarter of the previous year (\u20ac 594 million). In the third quarter, incoming orders<\/strong> were up by some 8.3 percent at \u20ac 550 million (equivalent quarter of previous year: \u20ac 508 million). This is much better than the current developments in the mechanical and plant engineering sector as a whole. The biggest contributions were made by the EMEA region (+ 16 percent) and the Packaging Solutions segment (+ 15 percent). The high order backlog<\/strong> of \u20ac 903 million paves the way for a very strong final quarter.<\/p>\n\n\n\n

\u201cWe 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 J\u00fcrgen Otto, CEO of HEIDELBERG. \u201cAnd 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.”<\/p>\n\n\n\n

Based on strong order levels, the company anticipates a clear increase in sales in the fourth quarter of the current financial year in particular. Adjusted EBITDA<\/strong> after nine months amounted to \u20ac 86 million (adjusted figure for equivalent period of previous year: \u20ac 135 million), and the adjusted EBITDA margin was 5.7 percent (equivalent period of previous year: 8.0 percent). The main reasons for this were the low sales volume in the first quarter and the associated high losses. Adjusted EBITDA for the third quarter of the current financial year increased to \u20ac 55 million, compared with \u20ac 34 million in the equivalent quarter of the previous year. The adjusted EBITDA margin improved significantly, from 5.7 percent to 9.2 percent. In the third quarter, net provisions amounting to \u20ac 29 million were established for the planned measures to reduce labor costs and were adjusted. Including this item, EBITDA<\/strong> in Q3 totaled \u20ac 26 million (previous year: \u20ac 34 million). Establishing these provisions resulted in a lower net result after taxes<\/strong> of \u20ac -7 million in the third quarter (equivalent quarter of previous year: \u20ac 1 million) and \u20ac -42 million after nine months (equivalent period of previous year: \u20ac 34 million).<\/p>\n\n\n\n

The\u00a0free cash flow\u00a0after nine months was, as anticipated, \u20ac -97 million (equivalent period of previous year: \u20ac -54 million). In the third quarter, it improved significantly compared with the previous year, creeping into positive figures at \u20ac 4 million (equivalent quarter of previous year: \u20ac -26 million). \u201cOur 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,\u201d said HEIDELBERG CFO Tania von der Goltz. \u201cThe 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,\u201d she added.<\/p>\n\n\n\n

Packaging segment remains a growth driver<\/strong><\/p>\n\n\n\n

Incoming orders in the\u00a0Packaging\u00a0segment increased significantly \u2013 by around 11 percent to \u20ac 959 million for the first three quarters and by some 15 percent in the third quarter. In terms of megatrends, the packaging market is first and foremost seeing a growing demand for packaging that is both sustainable and of a high quality. This is where the positioning of HEIDELBERG as a systems integrator and total solution provider is having a positive impact, helping to further expand the company\u2019s very strong position in the packaging market. \u201cPackaging 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,\u201d said David Schmedding, Chief Technology & Sales Officer at HEIDELBERG. \u201cWe 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,\u201d he explained. In the\u00a0Print<\/strong>\u00a0segment, incoming orders for the nine-month period increased by 4.4 percent to \u20ac 858 million.<\/p>\n\n\n\n

Growth strategy promises sales potential of over \u20ac 300 million in medium term<\/strong><\/p>\n\n\n\n

To expand its market position, HEIDELBERG is increasingly tapping into growth potential in its core market \u2013 from packaging and digital printing to software and lifecycle business<\/strong>. The first digital presses from the cooperation with Canon are going to customers in Switzerland and Germany. This cooperation will significantly boost future sales generated by digital print solutions, including consumables, software, and service<\/strong>. The company is also keen to further expand its portfolio in the growing market for green technologies<\/strong>. This includes key areas such as high-precision plant engineering, the automotive industry, charging infrastructure and software, and new hydrogen technologies. An initial prototype of a hydrogen electrolyzer<\/strong> will be completed in the summer and will be showcased as part of an in-house application. The objective is to carry out development work with customers, application and technology partners, and suppliers to create a market-ready system for producing hydrogen and make this available on an industrial scale. The medium-term goal of HEIDELBERG in the electromobility<\/strong> market is to use Amperfied to position itself as a leading system supplier of charging solutions for use at companies and in public spaces in Europe. The company is focusing on the operation of charging infrastructure, with the aim of ensuring maximum availability and reliability, as a service with stable recurring sales. This approach is confirmed by projects with Autobahn GmbH and companies at regional level, among others. Considering all strategic initiatives in the period to financial year 2028\/2029, HEIDELBERG sees overall growth potential<\/strong> amounting to over \u20ac 300 million, in conjunction with enhanced performance and efficiency.<\/p>\n\n\n\n

Full-year forecast confirmed, adjusted EBITDA margin to rise to up to around 8 percent in FY 2025\/2026<\/strong><\/p>\n\n\n\n

Factoring in the expectations and prerequisites published and set out in the 2023\/2024 Management Report, the company still anticipates that sales for\u00a0financial year 2024\/2025\u00a0will match the previous year\u2019s level (previous year: \u20ac 2,395 million). The adjusted EBITDA margin is also expected to be at the previous year\u2019s level (previous year: 7.2 percent). The high order backlog and the ongoing focus on margins and costs provide a sound basis for achieving the targets that have been set. The implementation of the plan for the future and the efficiency improvements are having a positive impact on the profitability of HEIDELBERG, with the adjusted EBITDA margin set to improve further to up to around 8 percent in the next financial year 2025\/2026.<\/p>\n","protected":false},"excerpt":{"rendered":"

At Heidelberger Druckmaschinen AG (HEIDELBERG), key figures for the first nine months of financial year 2024\/2025 (April 1 to December 31, 2024) and the third quarter (October 1 to December 31, 2024) were in line with the expected developments communicated by the company. Especially in terms of the key operating results, the third quarter of the current<\/p>\n","protected":false},"author":1,"featured_media":16155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[124],"class_list":{"0":"post-16154","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-corrugated-folding-carton","8":"tag-heidelberg"},"_links":{"self":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/16154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/comments?post=16154"}],"version-history":[{"count":1,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/16154\/revisions"}],"predecessor-version":[{"id":16156,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/16154\/revisions\/16156"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media\/16155"}],"wp:attachment":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media?parent=16154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/categories?post=16154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/tags?post=16154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}