Given the improvement in the order situation and the increasingly positive impact of the Group's transformation, Heidelberg Druckmaschinen AG (Heidelberg) is confident of returning to profitable growth in the financial year 2021/2022 (April 1, 2021 to March 31, 2022). Despite continuing uncertainties about the duration and extent of the negative effects of the pandemic, the company expects sales to increase from € 1.913 million to at least € 2.000 billion.
“The comprehensive transformation that Heidelberg initiated prior to the pandemic has made the company more agile and efficient. With demand recovering right now in most key sales regions, we expect to achieve a much better operating margin this year, including a slightly positive net result after tax. The considerable growth potential offered by packaging printing, digital business models, the Chinese market and new technologies (Wallbox charging systems for electric cars), gives us confidence in the years to come, ”he says. Rainer Hundsdorfer, CEO of Heidelberg.
With strong economic development, it appears that this upward trend will continue for years to come as well, as a direct result of a successful implementation of realignment measures by the company, a new approach based on a more profitable single core business, and expansion of growth areas. The economic savings of € 170 million are expected to have taken effect in the 2022/2023 financial year and the Group's operating break-even point is likely to also decrease by around € 1.900 billion.
Heidelberg sees considerable potential for continued growth and increased value in the future, especially for the packaging industry, digital business models, the Chinese market and new technology applications. Sales from Heidelberg Wallbox, for example, have helped more than double total electric mobility revenues (over € 20 million), and the company is working on a massive expansion of its capabilities to meet the dynamic growth of the demand. Despite the sums invested in this expansion, its electric mobility business is already making a profit.
“We are delighted that all our efforts during the crisis of the financial year 2020/2021 are paying off. Heidelberg once again has a solid financial base, with a more focused and efficient business vision, and is currently benefiting from excellent growth potential in various regions and business areas ”, emphasizes the CFO. Marcus A. Wassenberg.
Thanks to a strong last quarter, Heidelberg generated sales of approximately € 1.913 million this financial year, a figure slightly above the € 1.850 / 1.900 million set in the third quarter of the year. As already announced, the pandemic has meant that the company has not been able to match the previous year's figure (2.349 million euros), but even so, the results obtained have been above expectations. Due to a rebound in demand, particularly in China, parts of Europe and, in the last quarter, also in the United States, incoming orders increased to around 2.000 billion euros in the final annual period. In the fourth quarter alone, incoming orders improved very significantly, from 462 million euros in the previous year to 579 million euros, exactly during the same period, which increased the order book to 636 million euros.
Thanks to the positive impact of the transformation program, EBITDA, excluding the result of the restructuring in the 2020/2021 financial year, stood at 146 million euros, a clear improvement over the previous year (102 million euros). With 7,6%, the EBITDA margin, excluding the result of the restructuring, exceeded the company's own forecast, set at 7%, and was clearly higher than the previous year (4,3%), despite that the expected proceeds from the sale of the Wiesloch facility land will not be recorded until the new financial report.
EBIT, excluding the result of the restructuring, increased from € 6 million to € 69 million. The costs associated with the transformation measures led to a restructuring result of –51 million euros (previous year: –275 million euros). The financial result also improved by 11 million, obtaining a total of –41 million euros. As a result, the massively negative net profit after tax for the previous year, –343 million euros as a result of the restructuring, improved to –43 million euros.
