Heidelberg is reporting strong growth for the start of its financial year, generating EBITDA of €20m for the first quarter, from April 1 to June 30, up 30 per cent from €14m the prior corresponding period (pcp).
Net sales came in €541m for the quarter, up 9 per cent from €495m in the pcp, while the company had a total operating performance of €611m, increasing five per cent from €579m.
Incoming orders improved in Q1 by six per cent to €665m from €627.3m in the pcp.
In the Apac region, Heidelberg made sales of €172m, up 29 per cent from €133m in the first quarter the year before. The region now occupies 32 per cent of Heidelberg’s total revenue, in contrast to 27 per cent in the PCP. The Apac area snuck up on the Emea region which continued to be the strongest area for Heidelberg, although at 39 per cent of total revenue, it shrank from nearly half at 47 per cent the year before.
[Related: Heidelberg targets €3bn sales]
The company is attributing growth in net sales to high demand for its newly established subscription model and the launch of its Primefire digital press.
Rainer Hundsdörfer, CEO of Heidelberg says,“The strong customer demand for our new subscription portfolio and digital packaging printing presses has exceeded our expectations. Heidelberg is driving digitization in the entire industry. The establishment of the new business models is proceeding to plan and will at first make a relatively modest contribution to net sales and result, albeit one that will increase significantly in the medium term.”
Heidelberg’s Digital Technology sector generated €665m, increasing by 15 per cent from €272m in the pcp. Heidelberg says the its Digital segment benefited from higher sales in sheetfed and label businesses, especially in China.
Dirk Kaliebe, CFO, Heidelberg says, “Our financing structure is very solid. We have low leverage and are maintaining liquidity reserves we can use to finance our planned investments in new business models and the company’s digital transformation.”
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at [email protected]
Sign up to the Sprinter newsletter