Heidelberger Druckmaschinen AG (HEIDELBERG) has released its financial results for the first half of the fiscal year 2023/2024, demonstrating resilience in the face of a challenging global economic landscape. The positive trajectory is attributed to the successful market launch of new technologies in packaging printing and strategic price adjustments.
During the period from April 1 to September 30, 2023, HEIDELBERG achieved sales of €1.092 billion ($1.17 billion) in the EMEA region, indicating stability as this closely matched the previous year’s sales of €1.120 billion. Incoming orders for the same period remained robust at €1.184 billion after adjusting for exchange rate movements, in line with the previous year’s level of €1.229 billion.
The adjusted operating result (EBITDA) showed improvement, reaching €101 million compared to the previous year’s figure of €92 million. The corresponding adjusted EBITDA margin rose to 9.2%, up from 8.2% in the previous year.
HEIDELBERG’s entry into the packaging printing sector was a significant contributor to its positive performance, with technologies such as the Gallus One digital label press and the Boardmaster press for high productivity gaining notable attention from customers. The Packaging Solutions segment experienced a substantial increase of approximately 16% in incoming orders during the first half-year.
CEO Dr. Ludwin Monz highlighted the company’s commitment to expanding its portfolio in the stable growth area of packaging printing, stating, “Given the stable growth of packaging printing, we are continuously expanding our portfolio in this sector.”
Price adjustments to offset higher costs, including personnel, material, and energy, positively influenced HEIDELBERG’s performance. The net result after taxes for the first half of the year remained positive at €33 million, although it decreased compared to the previous year (€44 million) due to higher tax expenditure, increased pension-related interest costs, and the absence of positive special items.
Despite challenges, the company reported a substantial improvement in operating cash flow, driven by effective management of inventories and receivables. However, the free cash flow for the first six months was €–28 million, down from the previous year’s level of €–13 million, which included special items of approximately €52 million.
CFO Tania von der Goltz emphasized the importance of generating resources for growth, stating, “The current free cash flow situation underlines the necessity to use further impetus from our value creation program to generate resources for growth in segments such as the lucrative digital printing sector.”
The outlook for the financial year 2023/2024 remains unchanged, with HEIDELBERG expecting sales to match the previous year’s figure of €2.435 billion if the global economy aligns with growth predictions. The adjusted EBITDA margin is anticipated to remain at the previous year’s level of 7.2%, reflecting the company’s confidence in its outlook.