Heidelberg systematically implemented the Group’s strategic reorientation in the first half of financial year 2015/2016 (April 1 to September 30, 2015) and made further progress during this period. The growth areas – services and digital – have undergone considerable expansion, while structures and processes have been made even leaner in the sheetfed business.
The takeover of the Printing Systems Group (PSG) increased service and consumables sales as planned. The five subsidiaries have been fully integrated into the Heidelberg sales organization and the management structure adapted accordingly. Half of the planned additional sales of some €100 million from the takeover have been generated after six months.
The greater focus of the research and development budget on digital printing is also becoming increasingly apparent. One example is the successful sales launch of the company’s new digital label press for the packaging market. Heidelberg has also succeeded in winning over a German start-up company from the food industry for its latest development in the field of 4D printing. Unveiling the first industrial sheetfed digital press at the drupa trade show next year will mark the next milestone in the digital strategy.
The relocation of company headquarters and the Print Media Center Commercial from Heidelberg to Wiesloch-Walldorf marks the completion of a key structural measure. This will speed up processes in the future and further reduce annual operating costs for the sites. Together with the Print Media Center Packaging, Wiesloch-Walldorf now boasts the industry’s largest demonstration center for commercial and packaging printing anywhere in the world.
“We are systematically implementing our growth strategy. New business models and a dynamic portfolio have led to a significant increase in sales,” said Dirk Kaliebe, CFO and Deputy CEO of the company. “The reorientation of Heidelberg has also made us more flexible, which means we are better able to respond to market fluctuations and can further improve profitability,” he added.
After the first six months of financial year 2015/2016, business results at Heidelberg are in line with the company’s own planning. Sales and the operating result for the half-year exceeded the previous year’s figures. The acquisition of the European Printing Systems Group (PSG) and exchange rate movements had a particularly positive impact on sales.
Order backlog has further increased at the end of the second quarter. This along with positive effects resulting from the portfolio measures are expected to improve sales and profitability in the second half-year period.
Group sales after six months increased to €1.162 billion (previous year: €996 million). Sales were up in all regions except Eastern Europe, where they remained stable. Incoming orders in the period under review improved to €1.323 billion (previous year: €1.167 billion).
“After the first half of the current financial year, we are on course to achieve our targets for the year. As in previous years, we are expecting a further increase in sales and in the result in the second half of the financial year,” continued Kaliebe.
The operating result in the period under review was up on the previous year. EBITDA excluding special items totaled €79 million (previous year: €53 million) and EBIT excluding special items €43 million (previous year: €19 million). Both these figures benefited from income from the takeover of PSG amounting to some €19 million in the current financial year, compared with income of €18 million from the Gallus transaction in the previous year.
In the Heidelberg Services segment, improvements achieved through the portfolio measures led to a better result, which at the end of the half-year was already well on track to achieve the target EBITDA margin of 9 to 11 percent.
The financial result for the half-year improved to €–30 million (previous year: €–33 million). The net result before taxes also improved, from €–32 million in the previous year to €–8 million. The net result after taxes was much better at €–14 million following a figure of €–42 million in the corresponding period of the previous year.
The net financial debt at September 30 increased slightly to €284 million (March 31, 2015: €256 million) and thus remains at a low level.
As at September 30, 2015, the Heidelberg Group had a global workforce of 11,753 plus 473 trainees (previous year: 12,393 plus 550 trainees). This includes around 380 new employees from the acquisition of PSG.
Based on solid order books, Heidelberg is aiming for sales growth of 2 to 4 percent after adjustment for exchange rate effects in the current financial year 2015/2016. As in the previous year, the company is assuming that the share of sales will be higher in the second half of the financial year than in the first.
The figures for the third quarter of financial year 2015/2016 are due to be published on February 10, 2016.