Heidelberg H1 in profit and high order backlog

Rainer Hundsdorfer, primary executive officer at Heidelberg

During the second quarter of financial yr 2021-22 (from 1 July to 30 September 2021), Heidelberg has congenital on the encouraging developments of the showtime three months. The marketplace recovery continued in about all regions compared with the previous yr and, as already appear, the Group'due south transformation is working and showing in the operating result. The Group's half-twelvemonth sales increased by 22% to €983 one thousand thousand (previous year – €805 million). The EBITDA effigy of €75 million was as well up on the previous yr (€67 million), even though the first half of the previous year was positively influenced by earnings from the restructuring of retirement provision amounting to €73 one thousand thousand, the sale of a subsidiary (€8 million), and the widespread utilise of short-time working.

During the electric current reporting period, Heidelberg benefited from rising sales, far amend cost-efficiency, and earnings of over €20 one thousand thousand from the auction of docufy, which does not class function of the visitor's cadre business operations. The international logistics bottlenecks throughout the industry were already making themselves felt during the first one-half of the year in the form of delivery delays. Material supplies were also bailiwick to the familiar pressures. Yet, shut collaboration with suppliers and the approval of alternative components prevented more serious negative furnishings during this period.

"The highly positive developments in our growth areas and our improved cost-efficiency underline that Heidelberg is doing very well. We besides see great potential for the futurity thanks to our leading position in Prc and in the areas of digital business models, eMobility, and packaging printing. In add-on to all this, our break-fifty-fifty indicate will continue to fall. Despite the clearly evident problems in the supply chain at present, we are therefore confident about this year and the years to come," comments Heidelberg CEO Rainer Hundsdörfer.

Continuing progress in the four growth areas

The encouraging developments during the first half-year are based on further improved toll-efficiency and besides on continuing progress in the Group's growth areas , that is to say packaging press, digital business models, Mainland china, and new engineering applications, especially in eMobility. Heidelberg is benefiting from continued high growth in its largest single market – People's republic of china – partly due to the company's well-established local production operations. The recovery of need is also based on product innovations such as the new Speedmaster CX 104 universal press, which met with a very positive response at both China Print in June and the Innovation Days in Wiesloch in October of this year. In packaging printing , likewise, Heidelberg has seen high demand during the one-half-year, with incoming orders up over 36% on the previous twelvemonth.

Partnership with Munich Re for subscription model

The financial partnership entered into with Munich Re on viii Nov 2022 for digital business models will prepare the class for future growth. This collaboration is intended to fully harness the global market potential of the subscription options offered by Heidelberg and significantly boost the volume of business in this area. As for new technology offerings, the success of wall-boxes for eMobility continues to stand up out, with international expansion gaining further momentum. Following the market launches in Austria and Switzerland, Heidelberg volition too exist offer its charging solutions in French republic, Poland, and Hungary in the future. In response to the dynamic growth in demand, the fourth wall-box production line was taken into operation ahead of schedule. Wall-box sales during the half-year accept thus tripled and are making a far bigger contribution to the overall result, despite expenditure on product innovation and chapters expansion.

The Heidelberg Wallbox has been awarded EUPD Research's Meridian Brand Wallbox seal for its popularity with electric vehicle owners. Photograph Heidelberg

Positive developments in growth areas, the focus on the assisting cadre business, and consistent implementation of measures to realign the visitor will be the dominant features at Heidelberg over the next few years, with total cost savings of over €170 million expected in financial year 2022-23.

"At the finish of the half-twelvemonth, we have completely eliminated the cyberspace financial debt and improved our costless cash flow to €74 million. It's many years since Heidelberg was last in this situation, but we won't exist complacent and will systematically leverage our hereafter potential to continue the development of these key figures positive," says the visitor's CFO, Marcus A. Wassenberg.

Market recovery reflected in positive operational development

The growing market recovery in virtually all regions continued during the second quarter. At the end of September 2021, incoming orders totaled €i,245 one thousand thousand, which is significantly above the low effigy recorded in the previous year due to the pandemic (€864 one thousand thousand). Orders amounting to €593 million in the second quarter were likewise considerably higher than the previous year's figure (€518 million). The guild backlog increased to €886 million, compared with €627 one thousand thousand at the equivalent phase of the previous year. Group sales for the half-twelvemonth also grew substantially to €983 million (previous yr – €805 meg). The effigy for the 2nd quarter was €542 1000000, following on from €475 million in the corresponding period of the previous year.

EBITDA after six months improved to €75 one thousand thousand (first half-yr of 2020-21 – €67 meg). In the previous year, earnings from restructuring the occupational retirement provision (around €73 million), the extensive use of short-fourth dimension working to recoup for lower activeness levels, and the sale of the Belgian subsidiary CERM (approximately €8 million) had a positive touch. The electric current reporting period benefited from higher sales volumes, growing savings from the transformation, and earnings of over €twenty 1000000 from the auction of docufy. EBITDA for the second quarter amounted to €sixty million (corresponding quarter of previous year: €27 one thousand thousand), while EBIT afterwards half-dozen months totaled €37 meg (previous year – €27 million). As already announced, there was a sustained improvement in the financial result from €-27 meg to €-17 million, thanks to which the cyberspace result earlier taxes increased from €0 million to €xx million. After taxes , Heidelberg recorded a turn a profit of €13 million, following a figure of €-ix million in the previous twelvemonth.

Free cash flow improves by €126 one thousand thousand to €74 1000000

Thanks to the better result, significant improvements in net working uppercase, and positive effects such equally earnings from selling areas of land and docufy, the one-half-year free cash flow climbed by over €120 million, from €-52 one thousand thousand to €74 million. The positive free greenbacks period and the further repayment of fiscal liabilities led to a half-year cyberspace financial debt of €-four million (31 March 2022 – €67 million). Leverage was therefore below zero (corresponding quarter of previous twelvemonth – 1.2). Due to the positive net result after taxes and the slight increase in the actuarial interest charge per unit for pensions in Germany, the Group'south equity ratio rose from v.0% on 31 March 2022 to half dozen.2%. The equity ratio for the Heidelberger Druckmaschinen parent company remains at a solid level of around 27%.

Forecast for year as a whole remains unchanged despite uncertainties

The company is standing by its almost recent forecast. Appropriately, Heidelberg is however expecting sales to climb to at least €ii billion. With the sale of docufy, the company predicted an EBITDA margin in the range of vii to 7.5% on 31 August 2021. Given the increasing rate at which textile costs are ascension and shortages in the logistics chain, the third quarter will provide a clearer indication of where the EBITDA margin for financial year 2021-22 is likely to lie within this corridor.

Based on a press release from the company and only edited for mode. – Editor

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