In March of this year, Heidelberger Druckmaschinen AG (Heidelberg) launched a transformation program designed to drive profitability, improve competitiveness, and secure the future of the company. Thanks to the constant and rapid implementation of key measures in this program, the company has already generated positive results in the first quarter of fiscal year 2020/2021 (from April 1 to June 30, 2020). As a result, it was able to successfully counter the enormous operational pressures brought on by the Covid-19 pandemic.
However, the consequences of the global economic crisis had a considerable impact on sales and incoming orders in the first quarter. With approximately 330 million euros, net sales they were around a third lower than in the same quarter of the previous year (502 million euros). Orders received in the first three months fell by 44%, to 346 million euros (615 million euros the previous year), with a clear improvement recorded in June compared to the two previous months of the quarter. This upward trend also continued until July.
Despite market development, Heidelberg achieved a EBITDA, excluding the restructuring result of € 60 million (Q1 2019/2020: € 14 million), which was due to gains of € 73 million generated by the restructuring of the company's pension plans.
Consequently, the net profit after tax for the quarter was positive, 5 million euros (previous year: -31 million euros). Heidelberg's financial position is stable, as the net financial debt has been reduced to 122 million euros (previous year: 391 million euros).
With the transformation program's comprehensive package of measures, including structural and organizational improvements, as well as divestment of loss-making business activities and peripheral elements of the portfolio, Heidelberg is on track to improve its profitability by some 100 million euros in the medium term.
