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Order levels recovering and transformation taking effect – Heidelberg raises target margin for 2020/21

02/10/2021

  • EBITDA excluding restructuring result increases after nine months to € 147 million (previous year: € 117 million)
  • Demand recovers in China and Europe; incoming orders in December 2020 back up on the previous year for the first time
  • Free cash flow in the third quarter clearly positive at € 42 million
  • Company’s transformation yielding tangible successes
  • Earnings target raised for full financial year 2020/21 – EBITDA margin excluding restructuring result expected to be approximately 7 percent

Due to the increasingly tangible successes yielded by the company’s transformation, plus growing demand from China and, since the third quarter, from Europe, too, Heidelberger Druckmaschinen AG (Heidelberg) is raising its target operating return for financial year 2020/21 as a whole. Consequently, the company anticipates that its EBITDA margin excluding restructuring result will grow to approximately 7 percent, even though the coronavirus pandemic may lead to a sales decline of around € 450 million to € 500 million compared to the previous year (previous year’s sales: € 2,349 million) for the year as a whole. Previously, Heidelberg had anticipated an EBITDA margin that would, at its lowest, equal that of the previous year at 4.3 percent. It is also an encouraging sign for the coming months that print volumes among Heidelberg customers have almost reached the levels of the previous year, with the print volume in the packaging sector even exceeding the previous year’s level.

“The successful roll-out of the transformation measures has enabled Heidelberg to achieve a clearly positive operating result, despite the huge pressures caused by COVID-19. When it comes to both our finances and our balance sheet, we have done our homework. Signs of recovery are now emerging on the markets in China and Europe that are important to us. That is why our EBITDA target margin excluding restructuring result is being increased to around 7 percent. The growing interest in our contract business and strong demand for our electromobility charging stations are also grounds to be optimistic about the future,” says Heidelberg CEO Rainer Hundsdörfer, commenting on the developments.

Again in the third quarter, the numerous measures of the transformation program launched in March of last year more than compensated for the negative effect on earnings caused by a significant drop in sales due to COVID-19. As a result, after nine months of financial year 2020/21 (April 1 to December 31, 2020), the operating result including effects from the measures that have been implemented was above that of the same period of the previous year. In addition, the period under review saw a slightly positive net result after taxes, and significantly reduced net financial debt.

Strategic milestones secure the future of Heidelberg
Figures for the first nine months of financial year 2020/21 – order levels looking increasingly good
Free cash flow in the third quarter clearly positive at € 42 million
Forecast raised for profitability in financial year 2020/21 as a whole
Further information
Important note

robin_karpp

Robin Karpp
Head of Investor Relations and Group Communications Tel.: +49 (0)6222 82 67120
Fax.: +49 (0)6222 82 67129

Thomas_Fichtl

Thomas Fichtl
Head of Corporate Public Relations and Press Officer Tel.: +49 (0)6222 82 67123
Fax.: +49 (0)6222 82 67129

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