Heidelberger Druckmaschinen AG (Heidelberg) is making rapid progress in the transformation started in November last year. In June, a new operating model was launched which, with fewer levels of management, more agile processes and improved customer service, will allow a more efficient and profitable management of the business. This action package is designed to improve Heidelberg's profitability by approximately € 100 million, and the program is expected to strengthen its position in the current environment with a market affected by the Covid-19 crisis.
“2019 was the year that Heidelberg started its first restructuring. Even before the COVID-19 crisis, we launched the most comprehensive restructuring program in our company's recent history, with the aim of strengthening Heidelberg's profitable core. Now, we are doing everything in our power to further stabilize our financial base and become profitable, in a sustainable way, in the medium term. We are moving forward with the implementation of this program to make Heidelberg a better company. We have already reached important milestones. In times of crisis, this also helps us to be a strong partner for customers and to actively support them «comments Rainer Hundsdorfer, CEO of Heidelberg.
Heidelberg's strategy is focused on increasing profitability and consequently on markets and market segments that are profitable and in which the company occupies a leading global position. Inbound orders in the Asia / Pacific region increased to € 683 million in total despite deficiencies related to the Covid-19 in the fourth quarter (previous year: € 658 million).
Future-oriented technology in the form of digital solutions is ensured by Heidelberg's Smart Print Shop, which systematically improves process digitization to close automation gaps, advance digital process integration and harness the potential of digital data. and artificial intelligence.
The economic impact of the Covid-19 pandemic had a great influence on the figures and results for the 2019/2020 fiscal year. Net sales in fiscal year 2019/2020 (from April 1, 2019 to March 31, 2020) decreased by approximately 6% from the previous year, about 2.349 billion euros (previous year: 2.49 billion).
EBITDA, excluding the restructuring result, reached € 102 million, compared to € 180 million in the previous year. The decrease is primarily related to volume, product mix, and one-off effects. The EBITDA margin amounted to 4.3% (previous year: 7.2%). Due to restructuring expenses, the net result after tax reached negative figures, with a loss of € - 343 million (previous year: profit of € 21 million). As expected in connection with the restructuring, the result was € 275 million. During the financial year just ended, Heidelberg significantly reduced net debt to € 43 million.
Heidelberg expects sales for the financial year 2020/2021 to be significantly lower than the previous year (€ 2,349 million). The anticipated drop in sales due to the Covid-19 pandemic will also have a marked negative impact on the EBITDA margin, due to lower volumes. However, earnings are expected to improve thanks to the savings produced by the new package of measures.
