Heidelberg Sees Increase in Profitability in 3Q of FY 2024-25

At Heidelberger Druckmaschinen AG, key figures for the first nine months of financial year 2024/2025 (April 1 to Dec. 31, 2024) and the third quarter (Oct. 1 to Dec. 31, 2024) were in line with the expected developments communicated by the company.

Especially in terms of the key operating results, the third quarter of the current financial year brought significant improvements compared with the first half-year and also with the equivalent quarter of the previous year.

The adjusted EBITDA margin for the third quarter was 9.2% (equivalent quarter of previous year: 5.7%), with high-capacity utilization and intensified cost-cutting measures having a particularly positive impact.

Sales to date during financial year 2024/2025 have increased from quarter to quarter. The figure of €594 million for the third quarter matched the equivalent quarter of the previous year (€594 million). In the third quarter, incoming orders were up by some 8.3% at €550 million (equivalent quarter of previous year: €508 million).

The biggest contributions were made by the EMEA region (+16%) and the Packaging Solutions segment (+15%). The high order backlog of €903 million paves the way for a very strong final quarter.

“We have succeeded in continuously improving our sales and operating result quarter by quarter in a difficult economic environment. Thanks to our high order backlog, we can confirm that we will achieve our targets for the year,” said Jürgen Otto, CEO of Heidelberg. “And we will drive down costs further still in the coming year by implementing our plan for the future and boosting efficiency. This cost discipline will have a positive effect on our profitability, which should improve further in the next financial year.”

Based on strong order levels, the company anticipates a clear increase in sales in the fourth quarter of the current financial year in particular. Adjusted EBITDA after nine months amounted to €86 million (adjusted figure for equivalent period of previous year: €135 million), and the adjusted EBITDA margin was 5.7% (equivalent period of previous year: 8.0%). The main reasons for this were the low sales volume in the first quarter and the associated high losses.

Adjusted EBITDA for the third quarter of the current financial year increased to €55 million, compared with €34 million in the equivalent quarter of the previous year. The adjusted EBITDA margin improved significantly, from 5.7% to 9.2%.

The free cash flow after nine months was, as anticipated, €-97 million (equivalent period of previous year: €-54 million). In the third quarter, it improved significantly compared with the previous year, creeping into positive figures at €4 million (equivalent quarter of previous year: €-26 million).

“Our successful management of net working capital played a key role in achieving a positive free cash flow despite high inventories due to the order situation,” said Heidelberg CFO Tania von der Goltz. “The big improvements we are expecting in the results for the final quarter and the reduction of inventories by the end of the financial year will have a positive impact on the free cash flow.”

Incoming orders in the Packaging segment increased significantly – by around 11% to €959 million for the first three quarters and by 15% in the third quarter. In terms of megatrends, the packaging market is first and foremost seeing a growing demand for packaging that is both sustainable and of a high quality.

“Packaging printing is the current growth sector for the printing industry, including Heidelberg. In particular, the product innovation around the Boardmaster for high-volume packaging printing meets customer needs,” said David Schmedding, chief technology and sales officer at Heidelberg.

To expand its market position, Heidelberg is increasingly tapping into growth potential in its core market – from packaging and digital printing to software and lifecycle business. The first digital presses from the cooperation with Canon are going to customers in Switzerland and Germany. This cooperation will significantly boost future sales generated by digital print solutions, including consumables, software, and service.