Heidelberg has made a positive start to its financial year 2021/2022 (April 1, 2021 to March 31, 2022). Thanks to a broad market recovery in virtually all regions, and growing successes from the group’s transformation strategy, the company has been able to deliver the promised improvements in sales and operating profitability in the first quarter. For example, sales for the quarter increased by about 30% compared with the equivalent period of the previous year, from € 330 million to € 441 million. EBITDA improved substantially on an operational level to € 15 million, even exceeding the pre-crisis level recorded in FY 2019/20 of € 11 million.
“As demonstrated by our encouraging initial quarter of financial year 2021/22, Heidelberg is really delivering! Buoyed by the global economic recovery and the notable improvement in operating profitability, we are also very optimistic about meeting the targets announced for the year as a whole,” said Heidelberg CEO Rainer Hundsdörfer. Confidence regarding financial year 2020/21 as a whole is being fueled by a broad market recovery that, along with orders from the successful trade show in China, has led to incoming orders of € 652 million – an increase of about 89% compared with the equivalent quarter of the previous year. Given the marked uptick in demand – especially for innovative new products such as the Speedmaster CX 104 universal press – Heidelberg is convinced it can continue building on the company’s market-leading position in China, the world’s number one growth market.
Based on solid economic development, Heidelberg is expecting the profitable upward trend to continue in subsequent years as well. This is due to the company’s implementation of realignment measures, the focus on its profitable core business, and the expansion of growth areas. Cost savings of some € 140 million are predicted during financial year 2021/22 as a whole. Total savings exceeding € 170 million are then expected to take full effect in FY 2022/23, along with a lasting reduction in the group’s operating break-even point, measured in terms of EBIT, to around € 1.9 billion. The potential for sustained growth and increases in value, said the OEM, is based primarily on opportunities in packaging printing, digital business models, business in China, and new technology applications. For more information please visit Heidelberg’s website.