Following the transformation of the company and growing demand from China and Europe, Heidelberger Druckmaschinen AG (Heidelberg) is increasing its target operating performance for the financial year 2020/21 as a whole. The company anticipates that its EBITDA margin, excluding the result of the restructuring, will grow approximately 7%, although the coronavirus pandemic may lead to a drop in sales, from 450 million euros to 500 million compared to the previous year (€ 2,349 million). Previously, Heidelberg had already anticipated an EBITDA margin that, at its lowest level, would equal that of last year, at 4,3%. It is also an encouraging sign for the coming months that print volumes among Heidelberg customers have almost reached their previous year's levels, with print volume in the packaging sector even surpassing previous levels.
“Currently, there are already signs of recovery in the markets of China and Europe, both very important for us. That is why our target EBITDA margin, excluding the restructuring result, is increasing to around 7%. The growing interest in our contract business and the strong demand for our home charging stations for electromobility are also reasons to be optimistic about the future, ”says Heidelberg CEO, Rainer Hundsdorfer, when commenting on developments.
The sale of the Gallus Group, which did not take place as planned at the end of January 2021 despite having a valid purchase contract, is not generating limitations with respect to the forecast of results for the current year. The CFO Marcus A. Wassenberg He explains: “Overall, we have made much faster and more successful progress with our business transformation than previously reported. We have raised more than 450 million euros in liquidity, reduced debt by approximately 260 million euros, we have moved away from what generates the most losses and we will reduce costs by more than 170 million euros a year in a sustainable way. We are therefore confident that we will return to attractive profitability in the medium term. '
