Heidelberg has achieved its first positive half year result in a decade since it was hammered by the GFC, as it shifts into the industrial digital market, and is predicting a €500m improvement in sales from its last FY results.
Net result after taxes increases by €28m, taking it into the first positive half-year result in 10 years, albeit by a modest €0.3m.
EBITDA results have improved from the prior corresponding period (pcp) result of €45m, reaching €60m, with the margin reaching 8.2 per cent in the second quarter.
EBIT excluding restructuring results improved €15m, with a net result before taxes moving into profit, from minus €24m in the pcp to €2m. The company’s net debt has also been reduced, now sitting at €259m from €276 last year.
Heidelberg says it is leading the way in developing the industrial digital printing market, and aims to build on this position. The period under review also saw shipment of the first industrial digital packaging printing press, Primefire, through Heidelberg-owned Gallus.
Rainer Hundsdörfer, CEO, Heidelberg, says, “With the launch of new subscription models for our customers and our portfolio of innovative products for the eMobility growth sector, we are moving into new territory that offers enormous potential for growth. Heidelberg will be setting new standards when it comes to technologies of the future, digitisation, and efficiency. The necessary cultural shift has only just begun.”
During the period Heidelberg began the pilot phase for launching new, subscription based business models, offering customers a full package of machinery, services, consumables, and software.
The company also expects to save €50m through increased efficiencies in the coming years.
Dirk Kaliebe, CFO, Heidelberg, says, “Heidelberg is on a sound financial footing, with financing secured for the long term. This will enable us to independently fund the strategic measures and the growth we are aiming for.
“Systematically harnessing the potential from the efficiency program will also secure our medium-term profitability targets.”
As the dominant market player Heidelberg suffered the most when the GFC caused offset press orders to dry up. Since then it has been recalibrating its business, with a digital strategy for everything from heavy metal to its service model. It will likely be the first company to offer a B1 inkjet digital sheetfed press, with its Primefire 106 currently in beta testing.