As planned, sales remained stable at around €2.4bn (£2.02bn) (previous year: €2.435bn). An adjusted EBITDA margin of 7.2% was also maintained.
The free cash flow of €56m did not include any special items in the reporting year, such as the sale of non-operating assets. Adjusting the previous years’ free cash flow results for special items, the free cash flow for the financial year just closed is therefore the highest in over ten years.
Heidelberg said these figures highlighted the success of its value creation program, which has improved the company’s financial resilience. This has seen the business identify over 250 measures to boost productivity and strengthen its financial basis. Implementation is ongoing.
As the company noted last week, following its successful showing at Drupa – including the announcement of its partnership with Canon on B3 and B2 sheetfed inkjet, it is also confident about the prospects for financial year 2024/2025.
Overall, despite economic policy uncertainties, Heidelberg said it is expecting sales and the EBITDA margin for financial year 2024/2025 to match the previous year’s level.
“We have taken a big step toward our goal of achieving sustainable profitability at Heidelberg. Even in economically uncertain times, we have remained resolutely on track, which gives us confidence,” said Heidelberg CEO Dr. Ludwin Monz, who is stepping down at the end of June.
“Moving forward, we are looking to open up further growth markets thanks to our collaboration with Canon in the industrial inkjet printing sector.”
Heidelberg CFO Tania von der Goltz added: “Despite difficult economic conditions, we have achieved our targets for the year. Heidelberg has performed solidly in financial terms.
“Our value creation program is a key step in creating a more futureproof company. In economically uncertain times, we are expecting stable business development.”
Since financial year 2023/2024, when it accounted for 52% of sales, the Packaging Solutions segment has been the largest area of business at Heidelberg. Its sales were roughly 7% up on the previous year at around €1.2bn.
The large number of orders from Drupa led to a recovery in incoming orders at Heidelberg at the start of the new 2024/2025 financial year, which is expected to reach around €650m in the first quarter of 2024/2025.
Due to better utilisation of production capacities, short-time work at the German sites will end as early as this month.
Heidelberg said that, assuming the global economy does not see weaker growth than predicted by the relevant institutions, the company is expecting sales in financial year 2024/2025 to match the previous year’s figure for 2023/2024 (€2.4bn).
“A further supposition in this context is that there will be no substantial changes in key exchange rates for the company’s business activities,” it further stated.
The adjusted EBITDA margin is also expected to remain at the previous year’s level of 7.2%.
Heidelberg’s share price stood at €1.19 at the time of writing at lunchtime today (11 June), up nearly 3% on yesterday’s close (52-week high: €1.71, low: €0.85).
