02.10.22
In the third quarter of financial year 2021/2022 (Oct. 1 to Dec. 31, 2021), the order situation at Heidelberger Druckmaschinen AG (Heidelberg) recovered further still.
This and the continuing positive effects from the group’s transformation led to a clear improvement in the operating result, with incoming orders in the third quarter increasing by 16% to €643 million. After nine months, this figure was €1,888 million, which is 33% higher than in the previous year.
The higher order backlog of €951 million at the end of the quarter even exceeded the pre-pandemic level. Sales were also up on the previous year – by 20% at €582 million for the third quarter and by 21% at €1,565 million after nine months.
EBITDA rose significantly in the third quarter, by 36% to €57 million. EBITDA after nine months amounted to €132 million, which is 21% higher than in the previous year. The operating improvement was primarily due to an increased business volume and better margins as a result of the transformation.
These successes are particularly impressive in view of the fact that the availability of parts is creating big challenges across the industry. Heidelberg has, however, largely managed to overcome these challenges by approving alternative components and coordinating closely with suppliers on a day-to-day basis.
“The success of our efforts to transform Heidelberg is becoming ever clearer. Our core business is doing well thanks to our high level of innovation and our focus on customer benefits, and our digital business models are making a key contribution, too. What’s more, the dynamic growth in demand for electromobility solutions continues unabated. Overall, we are well positioned for the future. Moreover, the healthy order backlog creates a sound basis as we look toward the start of financial year 2022/2023,” said Rainer Hundsdörfer, CEO of Heidelberg.
For the years ahead, Heidelberg has systematically geared the group toward profitable growth in the areas of packaging printing and digital business models, in China, and also in new technology applications – especially electromobility and printed electronics.
Further milestones in this growth strategy were achieved during the third quarter. The strategic partnership with the Munich Re insurance group that was announced in early November provides a platform for the international expansion of digital usage-based subscription business. The subscription model offers customers a press, service, and consumables package for a usage fee based on the print output.
The upward sales trend and much improved cost-efficiency thanks to the transformation have also had a positive impact on the result, with EBITDA after nine months climbing to €132 million (equivalent figure for FY 2020/2021: €109 million).
Thanks to the higher EBIT and the very significant improvement in the financial result, from €–35 million to €–24 million, the net result before taxes increased from €15 million to €50 million. After taxes, Heidelberg recorded a profit of €40 million after nine months, following a figure of €3 million in the previous year.
Influenced by the improved result, and also by positive effects from the net working capital and the sale of assets, the company’s free cash flow on Dec. 31, 2021 was €69 million (previous year: €–10 million). The positive free cash flow and the further repayment of financial liabilities led to a net financial debt after nine months of just €6 million (March 31, 2021: €67 million). Leverage was therefore at zero (corresponding quarter of previous year: –1.2).
This and the continuing positive effects from the group’s transformation led to a clear improvement in the operating result, with incoming orders in the third quarter increasing by 16% to €643 million. After nine months, this figure was €1,888 million, which is 33% higher than in the previous year.
The higher order backlog of €951 million at the end of the quarter even exceeded the pre-pandemic level. Sales were also up on the previous year – by 20% at €582 million for the third quarter and by 21% at €1,565 million after nine months.
EBITDA rose significantly in the third quarter, by 36% to €57 million. EBITDA after nine months amounted to €132 million, which is 21% higher than in the previous year. The operating improvement was primarily due to an increased business volume and better margins as a result of the transformation.
These successes are particularly impressive in view of the fact that the availability of parts is creating big challenges across the industry. Heidelberg has, however, largely managed to overcome these challenges by approving alternative components and coordinating closely with suppliers on a day-to-day basis.
“The success of our efforts to transform Heidelberg is becoming ever clearer. Our core business is doing well thanks to our high level of innovation and our focus on customer benefits, and our digital business models are making a key contribution, too. What’s more, the dynamic growth in demand for electromobility solutions continues unabated. Overall, we are well positioned for the future. Moreover, the healthy order backlog creates a sound basis as we look toward the start of financial year 2022/2023,” said Rainer Hundsdörfer, CEO of Heidelberg.
For the years ahead, Heidelberg has systematically geared the group toward profitable growth in the areas of packaging printing and digital business models, in China, and also in new technology applications – especially electromobility and printed electronics.
Further milestones in this growth strategy were achieved during the third quarter. The strategic partnership with the Munich Re insurance group that was announced in early November provides a platform for the international expansion of digital usage-based subscription business. The subscription model offers customers a press, service, and consumables package for a usage fee based on the print output.
The upward sales trend and much improved cost-efficiency thanks to the transformation have also had a positive impact on the result, with EBITDA after nine months climbing to €132 million (equivalent figure for FY 2020/2021: €109 million).
Thanks to the higher EBIT and the very significant improvement in the financial result, from €–35 million to €–24 million, the net result before taxes increased from €15 million to €50 million. After taxes, Heidelberg recorded a profit of €40 million after nine months, following a figure of €3 million in the previous year.
Influenced by the improved result, and also by positive effects from the net working capital and the sale of assets, the company’s free cash flow on Dec. 31, 2021 was €69 million (previous year: €–10 million). The positive free cash flow and the further repayment of financial liabilities led to a net financial debt after nine months of just €6 million (March 31, 2021: €67 million). Leverage was therefore at zero (corresponding quarter of previous year: –1.2).