HEIDELBERG Demonstrates Resilience in Fiscal Year 2024
Heidelberg (OTS) - In the recently concluded fiscal year 2024/25, Heidelberger Druckmaschinen AG (HEIDELBERG) has successfully navigated a challenging market landscape, achieving its defined objectives. Preliminary figures indicate that the adjusted EBITDA margin was maintained at a stable 7.1%, reflecting the company's robust performance despite economic headwinds.
Although the total revenue of approximately EUR2.280 billion was slightly below last year's figure of EUR2.395 billion, HEIDELBERG effectively countered rising wage costs and expenses related to the drupa trade fair through implemented cost-reduction and efficiency measures. Particularly noteworthy is the company's performance in the fourth quarter, where the EBITDA margin doubled compared to the previous year, reaching around 10%.
For the second consecutive year, HEIDELBERG reported a significantly positive free cash flow, amounting to approximately EUR50 million, unchanged from the previous year. This figure excludes any extraordinary influences, such as those from the sale of non-essential assets.
Jürgen Otto, CEO of HEIDELBERG, commented on the company's achievements, noting the successful navigation through an unpredictable economic environment and geopolitical uncertainties. The positive free cash flow reinforces the company's sound financial trajectory, while measures to lower personnel costs are expected to enhance profitability in the upcoming fiscal year.
Looking ahead, HEIDELBERG anticipates an improvement in the adjusted EBITDA margin, aiming for a target of approximately 8% for the fiscal year 2025/26. The company closed the past fiscal year with a significant increase in order intake, especially in the fourth quarter, where orders exceeded EUR600 million.
The company's diverse global presence has allowed it to benefit from varying growth dynamics across regions. Notably, the EMEA region saw a substantial rise in order intake during the fourth quarter, while the Americas experienced minor improvements. However, the Asia-Pacific region faced a decline from previous quarters, attributed to investment hesitancy ahead of the upcoming China Print trade fair.
The core business's two segments witnessed growth, particularly in the Sheetfed product category, with Packaging Solutions accounting for approximately 52% of total order intake. Overall, the preliminary order intake for the year reached about EUR2.430 billion, marking a 6% increase over the previous year's total of EUR2.288 billion.
Dr. David Schmedding, Chief Technology and Sales Officer at HEIDELBERG, emphasized the advantages of the company's global operations during uncertain economic times. The anticipated rise in orders suggests a favorable beginning for the new fiscal year, complemented by expected boosts from the China Print trade fair scheduled for May.
Scheduled from May 15 to 19, the China Print exhibition will be a significant event in the Chinese printing industry, attracting over 100,000 visitors. HEIDELBERG is set to showcase its latest innovations aimed at enhancing efficiency and productivity, alongside integrated hybrid production solutions combining offset and digital printing.
HEIDELBERG's strategy includes expanding its business and portfolio to provide customers with integrated end-to-end solutions through automation, robotics, and software. The company aims to capitalize on the growing packaging segment, which is projected to grow at approximately 4% annually in China, offering its clients competitive advantages in this market.
The official release of audited financial results for the fiscal year 2024/25 is anticipated on June 5.
About HEIDELBERG: Heidelberger Druckmaschinen AG is a leading technology firm with a 175-year history of innovation, quality, and reliability in machinery manufacturing. The company focuses on growth in key areas such as packaging and digital printing, software solutions, and lifecycle services, aiming to maximize productivity for its clients. With a strong international network spanning around 170 countries and a workforce of approximately 9,500 employees, HEIDELBERG is well-positioned for future growth.