HEIDELBERG makes successful start to 2022|23 financial year - sales and earnings increase in Q 1.

HEIDELBERG, Germany: Heidelberger Druckmaschinen AG (HEIDELBERG) has made a successful start to the new 2022/23 financial year. The first quarter saw significant improvements in both sales and operating profitability, thanks to the continued recovery of the markets in almost all regions and the progressive success in transforming the company. For example, the Group's sales figures between April and June grew by 20 percent year on year to EU530 million. This significant increase can largely be attributed to the rise in the number of new machines delivered. The regions of Europe and North America recorded particularly positive developments. By contrast, results in China were sometimes weaker compared to the previous year, due to the extensive lockdowns in the economically relevant cities. Thanks to higher sales and the ongoing reduction of structural costs, HEIDELBERG significantly improved its operating result (EBITDA) in the first quarter, recording an increase of EU20 million to EU35 million. In addition, it was possible to pass on sustained increases in material costs.

"The positive start to the new financial year gives us cause to be cautiously optimistic as we look forward," commented Dr. Ludwin Monz, CEO of the company. "Provided there is no downturn in the general economic environment, we are confident we will reach the annual targets we have set. We will support our growth by expanding our products and services for digital printing in the label market and launching new, networking-capable wallboxes in the electromobility sector."

Forecast for 2022/23 financial year confirmed

Despite ongoing global uncertainties, HEIDELBERG believes it has good opportunities for profitable growth in the 2022/23 financial year, too. The company continues to expect sales figures to grow to around EU2.3 billion (2021/22: EU2.183 billion), provided there is no significant downturn in the general economic environment. Profitability is also expected to improve further. HEIDELBERG is forecasting further improvement in the EBITDA margin to at least 8 percent for the 2022/23 financial year (2021/22: 7.3 percent). The net result after taxes is also expected to increase slightly compared to 2021/22 (EU33 million).

High level of demand in spite of economic uncertainties

Incoming orders of EU607 million in the first quarter showed a return to the pre-pandemic 2019/2020 level (EU615 million) - even though business in China was curbed by the two-month COVID-19...