Sales set to rise to around €2.3 billion in FY 2022/23, with a healthy order backlog of €900 million – primarily due to growth in the company’s core business.
EBITDA margin of at least 8 % and further improvement in net result after taxes targeted.
Highlights of financial year 2021/22: Sales up 14% to €2.183 billion and EBITDA margin increases to 7.3%.
Balance sheet resilience strengthened and net financial debt reduced
Heidelberg is cautiously optimistic as it embarks on financial year 2022/23. The Group’s order backlog of around €900 million as at March 31, 2022 is the highest in ten years. Like all production companies, however, Heidelberg is facing some sharp increases in material, energy, logistics, and staffing costs that are likely to result in price adjustments. Thanks also to substantial efficiency improvements resulting from the package of measures in recent years, Heidelberg is nevertheless confident of being able to improve sales from €2.18 billion to around €2.3 billion in financial year 2022/23 and also increase the EBITDA margin to at least 8%.
The Group is benefiting from growth initiatives focusing on the profitable core markets of packaging printing, digital business models, and the e-mobility sector, which is enjoying dynamic growth.
“Over the past financial year, Heidelberg has further strengthened its resilience by significantly improving its sales and results. Financially speaking, the Group is in a better position than for quite some time. In financial year 2022/23, too, we are looking to benefit from the successful growth initiatives focusing on the core markets and our digital business models, and also from our e-mobility success story. That makes us optimistic about being able to counteract the very challenging circumstances, including the huge price increases. We will be keeping a very close eye on the markets so that we can take any necessary countermeasures. As things stand at present, though, we are expecting further growth in sales to around €2.3 billion and – primarily as a result of operational improvements – an increase in the EBITDA margin to at least 8%,” says Heidelberg CEO, Dr. Ludwin Monz.
Realignment of Heidelberg bearing fruit
In financial year 2021/22 (April 1, 2021, to March 31, 2022), Heidelberg benefited from the Group’s successful realignment over the previous two years. Sales rose by 14% to €2.183 billion, which met the target of at least €2.1 billion. Significant growth was achieved in both commercial and packaging printing, with increasing demand for virtually all products and in all regions. Customer investments in new equipment were the main driving force. Incoming orders increased by more than €450 million to €2.454 billion, which reflected this improved investment climate. The order backlog reached a level of around €900 million (previous year: €636 million).
Balance sheet quality and free cash flow improve by over €100 million on an operational level
Mainly due to the significant reduction in net working capital and to income from the sale of assets during the reporting period, the free cash flow rose from €40 million in the previous year to €88 million. Thanks to the successful repayment of loans, borrowings, and a convertible bond, the net financial debt once again fell considerably, from €67 million to €–11 million. Leverage decreased from 0.7 to –0.1. Heidelberg also made clear progress with its equity ratio. This increased to 11.1%, compared with 5.1% of the previous twelve months.
“Our efforts to improve our cash flow and balance sheet quality are also bearing fruit. Going forward, the focus will remain on achieving a positive free cash flow and further strengthening our financial situation so as to make Heidelberg even more resilient,” adds the company’s CFO, Marcus A. Wassenberg.
