HEIDELBERG (dpa-AFX) - After another slump in profits in the past fiscal year, machine manufacturer Heidelberger Druckmaschinen is back on track. The SDax-listed company announced on Thursday that it has expanded its portfolio in strategic growth markets and significantly improved its cost base. Despite the continuing difficult environment, the management team led by CEO Jürgen Otto sees tailwinds primarily in the recently improved order situation. After initial losses, the share price rose by a good two percent in morning trading.
Heidelberger Druck expects a slight increase in sales to around €2.35 billion for the 2025/26 fiscal year, which began in early April, after sales fell by five percent to €2.28 billion last year, as previously announced.
Although this year's sales target is slightly below analysts' average expectations and the group would still fall short of the sales level of two years ago, the start to the year is likely to be better than last year, according to the Executive Board. Positive momentum has already been seen from the high order intake at the China Print trade fair in May. Heidelberger Druck therefore expects a boost from the Asia-Pacific region for the year.
Despite the continuing difficult economic environment, the situation had already begun to improve in the final quarter of the last fiscal year with a significant increase in orders. According to the company, orders received rose by around 6 percent to €2.43 billion in the 2024/25 fiscal year as a whole.
Adjusted earnings before taxes, interest, and depreciation fell by 6 percent to €162 million. Due to high one-time charges related to planned job cuts, net profit plummeted by 87 percent to €5 million.
The mechanical engineering company plans to cut more than one in ten jobs at its Wiesloch-Walldorf site. Around 450 of the most recent 4,000 jobs are to be made redundant in a socially responsible manner, as the company announced in December. The company aims to reduce personnel costs by more than €100 million with this measure.
CEO Jürgen Otto believes the measures are already having an effect. The group has already achieved significant strategic and operational improvements, said the manager. "The increased efficiency and performance will further strengthen our profitability," added Otto, confirming his return target for the current year: The operating margin (adjusted EBITDA margin) is expected to rise from 7.1 percent to around 8 percent.
Meanwhile, Heidelberger Druck is changing its reporting structure starting this year. The Group will now report separate figures for the Print & Packaging Equipment, Digital Solutions & Lifecycle, and Heidelberg Technology segments. /tav/stk/mis
