Heidelberg on course for growth
- Targets for 2015/2016 achieved:
- Sales nearly 8 percent up at €2,512 million
- Good operating profitability results in net profit after taxes of €28 million
- Improved financial framework lays foundation for further growth
- Medium-term targets defined:
- Annual sales growth of up to 4 percent to around €3 billion
- Consistently high profitability – EBITDA margin of 7–10 percent and rising net profit after taxes
Heidelberger Druckmaschinen AG (Heidelberg) set the course for growth and sustained profitability in financial year 2015/2016 (April 1, 2015 to March 31, 2016). The effects of the successful strategic reorientation over the past few years are being felt. The substantial increase in sales, the improvement in the EBITDA margin to nearly 8 percent, and the significant reduction in financing costs delivered the predicted clearly positive net profit after taxes in the year under review. A €100 million turnaround in result – from €-72 million to €28 million – was achieved.
Heidelberg is looking to continue its growth path in the years ahead based on the new portfolio and planned acquisitions, especially in the services sector. In the current financial year 2016/2017, the company is once again targeting sales growth of up to 4 percent. In the medium term, too, the plan is to achieve an annual increase of up to 4 percent in Group sales – to around €3 billion. This includes establishing profitability at a high level, with an EBITDA margin in the range of 7–10 percent. Despite its outlay to speed up the expansion of digital and service business, the company is expecting to match the previous year’s EBITDA margin in the current financial year 2016/2017. It is also looking to further improve the financial result by reducing the interest burden. The ultimate aim for financial year 2016/2017 is a moderate increase in the net profit after taxes, with further improvements in the coming years.
“Heidelberg has delivered and is once again making profits. The reorientation is showing positive results,” said CEO Gerold Linzbach. “We’re also looking to achieve further growth in the future with our investments in the digital and services business. The high level of customer interest at drupa confirms we’ve adopted the right strategy,” he added.