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PRESSIdeas Nov 2024

The November 2024 issue of PRESSIdeas magazine for the printing, packaging, publishing and labelling industry in the South East Asia market.

November 2024

HEIDELBERG incoming orders after 6 months

exceed previous yr. level

The company anticipates a very strong second half to fi nancial year 2024/2025; reports high order backlog

and strong drupa orders.

Incoming orders in

the Asia Pacifi c region

recorded the clearest

growth in the fi rst six

months of the current

fi nancial year, increasing

by approximately 10

percent.

Key Notes :

> Incoming orders after

six months above

previous year’s level

thanks to strong

drupa orders.

> High order backlog

provides sound basis

for projected sales

volume in second half

of the year, capacities

being fully utilized.

> Packaging solutions

segment remains

growth driver.

Riding on a high order backlog of € 953 million,

Heidelberger Druckmaschinen AG (HEIDELBERG)

anticipates that the second half of financial year

2024/2025 will be strong, while current developments

over the quarters reflect the pronounced seasonality

that is to be expected. This positive outlook is based

on strong incoming orders in the first half of the

year, which are 7.4 percent up on the previous year,

at € 1.273 billion. Sales of € 915 million were within

expectations, due to purchasing restraint ahead of

the drupa trade show (previous year: € 1,092 million).

“HEIDELBERG is starting a very strong second half of

the year. We are now ramping up the utilization of our

production capacities so we can work through our

order backlog in the third and fourth quarters quickly

and profitably,” says HEIDELBERG CEO Jürgen Otto.

“The forecast sales volume for new machines has

already been almost entirely met with orders and our

production operations are running at full capacity. We

can be confident that we will achieve our targets for

the year.”

HEIDELBERG is still particularly strong in and around

China. Incoming orders in the Asia Pacific region

recorded the clearest growth in the first six months of

the current financial year, increasing by approximately

10 percent.

Based on strong order levels, the company

anticipates a clear increase in sales in the second

half of the current financial year in particular. When

adjusted for special items, the EBITDA margin in the

first six months of financial year 2024/2025 was 3.4

percent (same period of previous year: 9.2 percent)

and was impacted in particular by lower sales in

Q1 and by expenses related to drupa. Strict cost

discipline had a positive impact in the reporting

period. This is another reason why EBITDA improved

significantly compared to the first quarter from € -9

million to € 40 million. During the period under review,

there were no special items that require adjustment.

Compared to the same period of the previous year

(€ 33 million), the result after taxes after six months

dropped in line with the lower adjusted EBITDA to

€ -35 million. In the second quarter, the result after

taxes was positive, at € 7 million (same quarter of

previous year: € 23 million).

After the first half-year, free cash flow was, as

anticipated, € -102 million (same period of previous

year: € -28 million). It improved significantly in the

second quarter, creeping into positive figures, at € 2

million. “Our active cost management is increasingly

bearing fruit by considerably improving free cashflow

over the course of the year,” reports HEIDELBERG

CFO Tania von der Goltz. “Consistent cost control

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