Free cash flow at highest level for 10 years & significantly improved incoming orders in 4th quarter; to present innovations at drupa with broad customer base as key strength.
Riding on a successful Financial Year, achieving set targets, Offset major HEIDELBERG is well prepared for its drupa participation. The preliminary figures for the past financial year 2023/2024, show the company meeting forecast. What makes it special is that there have been adverse and challenging economic as well as geopolitical conditions globally which were further aggravated by cost pressure on materials, energy and personnel.
HEIDELBERG has reported having succeeded in keeping sales stable at around € 2.4 billion (previous year: € 2.435 billion) and the adjusted EBITDA margin at 7.2 percent. Free cash flow reached around € 50 million – the highest free cash flow in over 10 years. These figures underline the successful implementation of the value enhancement program by the company.
CEO Dr. Ludwin Monz says: “We were able to achieve our financial year targets in a difficult economic environment. HEIDELBERG’s financial performance was solid. Our value enhancement program is an important building block in positioning HEIDELBERG for the future.”
Value enhancement program: More financial leeway for the further development of the company
As part of the value enhancement program, HEIDELBERG has identified more than 250 measures to increase productivity and strengthen the financial base, which are being implemented on an ongoing basis. In the 2023/2024 financial year, the measures initiated at an early stage successfully compensated for the considerable negative impact on earnings from declining production volumes and rising costs. Measures to specifically optimize net working capital also had a positive impact on free cash flow.
Tania von der Goltz, CFO of HEIDELBERG, says: “The resilient development of profitability and free cash flow are proof of our financial discipline and our ability to deliver re-liable results even in a difficult environment. In a financial year that was characterized by a decline in orders across the industry, we achieved our targets and met our forecasts thanks to the value enhancement program we initiated at an early stage.”
Incoming orders were for 2023/2024, though 6 percent down on the previous year, developed better than the industry average. The fourth quarter improved significantly to about € 600 million (after a weaker third quarter of € 508 million) driven by strong business in Asia, particularly China.
Innovations at drupa – broad customer base as a strength
HEIDELBERG is preparing for a successful drupa trade fair with technological innovations that support print shops with their biggest challenges. Automation and digitalization of the value chain as well as solutions for more resource-efficient production are the focus in both of the company’s segments. Innovative products in the field of offset, digital and flexo printing, supplemented by collaborative robotics for the post-processing of print products, will demonstrate the company’s forward-looking orientation at the up-coming trade fair. HEIDELBERG will rely even more heavily on its broad and established customer base as well as its globally organized and top-class sales and service for the future success.
