Heidelberg on track to meet medium-term targets – expected stable development in 2017/2018
- Significant progress with digital transformation thanks to:
- successful launch of subscription model and
- start of series production for digital presses
- Path to medium-term targets taking shape:
- Group sales set to increase to around €3 billion and
- net result after taxes to > €100 million
- Specified targets for financial year 2017/2018 achieved:
- despite significant negative foreign currency effects, Group sales of €2,420 million and
- EBITDA of €172 million
Heidelberger Druckmaschinen AG (Heidelberg) made significant progress with the Group’s targeted digital transformation in financial year 2017/2018 (April 1, 2017 to March 31, 2018). A number of customers have already opted for the new subscription model that offers Heidelberg products and services under a usage-based all-in contract running over several years. The total of more than 30 contracts targeted for the new financial year 2018/2019 are set to generate a business volume of some €150 million over the term of the standard five-year models.
In addition, the series production of digital presses for packaging and label printing (Primefire and Labelfire), which also started in financial year 2017/2018, will have an increasingly positive impact on sales. Heidelberg is thus on course to meet the medium-term targets communicated in the summer of 2017. These include an increase in Group sales to around €3 billion, an operating result (EBITDA) of €250 to 300 million, and a net profit after taxes of over €100 million.
“Heidelberg made excellent progress with its digital transformation in 2017/2018. Both our new subscription model and the new digital presses are in high demand. Given that this will be reflected in the company’s sales and result to an ever greater extent in the years ahead following the current start-up phase, our medium-term targets will be increasingly within our grasp,” CEO Rainer Hundsdörfer commented on the developments.