Heidelberg Enjoys Successful Start to 2022-23 Fiscal Year

Heidelberg has enjoyed a successful start to the new 2022-23 financial year. The first quarter saw significant improvements in both sales and operating profitability, thanks to the continued recovery of the markets in almost all regions and the progressive success in transforming the company.

For example, the Group’s sales figures between April and June grew by 20% year on year to €530 million. This increase can largely be attributed to the rise in the number of new machines delivered. The regions of Europe and North America recorded particularly positive developments. By contrast, results in China were sometimes weaker compared to the previous year, due to the extensive lockdowns in the economically relevant cities.

Thanks to higher sales and the ongoing reduction of structural costs, Heidelberg significantly improved its operating result (EBITDA) in the first quarter, recording an increase of €20 million to €35 million. In addition, it was possible to pass on sustained increases in material costs.

“The positive start to the new financial year gives us cause to be cautiously optimistic as we look forward,” said CEO Ludwin Monz. “Provided there is no downturn in the general economic environment, we are confident we will reach the annual targets we have set. We will support our growth by expanding our products and services for digital printing in the label market and launching new, networking-capable wallboxes in the electromobility sector.”

The company continues to expect sales figures to grow to around €2.3 billion (2021-22: €2.183 billion), provided there is no significant downturn in the general economic environment. Profitability is also expected to improve further. Heidelberg is forecasting further improvement in the EBITDA margin to at least 8% for the 2022-23 financial year (2021-22 saw 7.3%). The net result after taxes is also expected to increase slightly compared to 2021-22 (€33 million).

All segments increased their sales during the first quarter. Growth in Packaging Solutions, at around 28%, was particularly strong. The Group also recorded slight increases in its incoming orders and sales figures in electromobility, even though the availability of electronic components was restricted to some extent. Further growth in this segment is expected to become slightly weaker due to promotional schemes coming to an end, longer delivery times for electric vehicles, and supply chain bottlenecks on the customer’s side (in relation to installation).

“In addition to the recovery of the markets, we are increasingly reaping the benefits of the measures we have taken to boost efficiency within the Group,” noted CFO Marcus Wassenberg. “At the start of the new financial year, Heidelberg has again made itself more robust and is in a good financial position. We therefore feel confident as we look to the future, in spite of the economic risks.”