Successful Start to Financial Year 2015-2016 for Heidelberg

Heidelberger Druckmaschinen AG reports it has made a successful start to the new financial year 2015/2016. The figures for the first quarter (April 1 to June 30, 2015) show that the company’s strategic reorientation is having an impact, with improvements in both sales and the result. The acquisition of the European Printing Systems Group (PSG), a successful trade show in China, and positive exchange rate movements have had a particularly positive effect. As a result, Heidelberg saw a further increase in its order backlog at the end of the first quarter.
 
“As it starts the new financial year, Heidelberg is well on the way to achieving its targets for the year,” said Dirk Kaliebe, CFO and deputy CEO. “The restructuring period is over and in the future we’ll be re-focusing our attention on managing our growth.”
 
Thanks to a healthy order backlog, higher service-related sales and exchange rate effects (around €40 million), sales in the quarter under review increased to €563 million (previous year: €435 million). All regions achieved higher sales. As a result of the successful trade show in China, additional service-related business due to the PSG takeover, and exchange rate effects (roughly €55 million), incoming orders climbed to €703 million (previous year: €588 million).
 
The operating result was far better than in the previous year, with EBITDA of €46 million (previous year: €6 million) and EBIT of €28 million (previous year: €-11 million). Income from the takeover of PSG totaling about €19 million had a positive impact on both these figures.
 
At €-14 million, the financial result was better than in the same quarter of the previous year (€-17 million). The net result before taxes (€-1 million following €-28 million in the same quarter of the previous year) and the net result after taxes (€-4 million following €-34 million in the same quarter of the previous year) were almost at break-even.
 
The free cash flow after the first quarter of financial year 2015/2016 was €-35 million (same quarter of previous year: €-66 million). This was essentially the result of net payments of some €8 million to acquire PSG and payments associated with portfolio optimization measures totaling around €9 million. The net financial debt increased slightly in the quarter under review, to €277 million (March 31, 2015: €256 million), and thus remains at a low level.
 
Boosted by healthy order books, Heidelberg is aiming for sales growth of 2% to 4% after adjustment for exchange rate effects in the current financial year 2015/2016.
 
Provided the initiatives to improve the margin and optimize the portfolio have the planned impact in the current financial year, the company expects to be able to achieve an operating margin based on EBITDA of at least 8% of sales – now adjusted for exchange rate movements – in financial year 2015/2016.