Heidelberg with a solid start to the new financial year – order backlog growing thanks to subscription model
- Incoming orders in the first quarter up by 6 percent to €665 million
- Group sales increased by 9 percent to €541 million
- Operating result (EBITDA) up from €14 million to €20 million – EBIT positive at €2 million
- On course to achieve overall annual targets for 2018/2019
- Digital transformation well underway, medium-term targets firmly in sight
Heidelberger Druckmaschinen AG
Heidelberger Druckmaschinen AG (Heidelberg) has started off the 2018/2019 financial year with growth in net sales and result. High demand for the newly established sub-scription model and the launch of series production of the Primefire digital press are demonstrating the potential the digital transformation offers the company. Incoming orders, for example, improved in the first quarter (April 1 to June 30) by 6 percent to €665 million. Furthermore, the previous year’s figure of €629 million benefited from the Print China trade show. The order backlog grew by 18 percent to €714 million (previous year: €603 million), partly due to subscription contracts, particularly in terms of life cycle business, i.e. services and consumables.
The first quarter brought in the first revenues raised from subscription contracts, which generate recurrent sales over a term that usually lasts five years. However, Heidelberg also recorded growth in traditional business during the first quarter, with sales rising by 9 percent in total to €541 million, despite negative currency effects. Had exchange rates remained similar, revenues would have risen by around 11 percent.
“The strong customer demand for our new subscription portfolio and digital packaging printing presses has exceeded our expectations. Heidelberg is driving digitization in the entire industry. The establishment of the new business models is proceeding to plan and will at first make a relatively modest contribution to net sales and result, albeit one that will increase significantly in the medium term,” commented Rainer Hundsdörfer, CEO of Heidelberg.