In the third quarter of the financial year 2021-22, the order situation at Heidelberg recovered further still. This and the continuing positive effects from the group’s transformation led to a clear improvement in the operating result, with incoming orders in the third quarter increasing by 16 percent to €643 million. After nine months, this figure was €1,888 million, which is 33 percent higher than in the previous year.
The higher-order backlog of €951 million at the end of the quarter even exceeded the pre-pandemic level. Sales were also up on the previous year – by 20 percent at €582 million for the third quarter and by 21 percent at €1,565 million after nine months. EBITDA rose significantly in the third quarter, by 36 percent to €57 million. EBITDA after nine months amounted to €132 million, which is 21 percent higher than in the previous year.
The operating improvement was primarily due to an increased business volume and better margins as a result of the transformation. These successes are particularly impressive in view of the fact that the availability of parts is creating big challenges across the industry. Heidelberg has, however, largely managed to overcome these challenges by approving alternative components and coordinating closely with suppliers on a day-to-day basis. The company’s large vertical range of manufacture is a further advantage in this regard. With the supply chain situation still critical, the focus remains on ensuring the availability of parts.
“The success of our efforts to transform Heidelberg is becoming ever clearer. Our core business is doing well thanks to our high level of innovation and our focus on customer benefits, and our digital business models are making a key contribution, too. What’s more, the dynamic growth in demand for electromobility solutions continues unabated. In this sector, we are systematically pressing ahead with our expansion outside Germany and, in the future, we will continue the strategic development of our business model through acquisitions and collaboration. Overall, we are well-positioned for the future. Moreover, the healthy order backlog creates a sound basis as we look toward the start of the financial year 2022-23,” says Rainer Hundsdörfer, CEO of Heidelberg.
The upward sales trend and much-improved cost-efficiency thanks to the transformation have also had a positive impact on the result, with EBITDA after nine months climbing to €132 million (equivalent figure for FY 2020/2021: €109 million). In the previous year, the beneficial effects on this figure of the transformation, changes to retirement provision, and short-time working had amounted to some €150 million. Besides the substantial operating improvements, earnings from the sale of docufy (around €22 million) and a property in the UK (€26 million) provided a further boost during the current reporting period.
EBIT after three quarters totaled €74 million (previous year: €50 million). Thanks to the higher EBIT and the very significant improvement in the financial result, from €–35 million to €–24 million, the net result before taxes increased from €15 million to €50 million. After taxes, Heidelberg recorded a profit of €40 million after nine months, following a figure of €3 million in the previous year.
Low net financial debt and improved equity ratio
Influenced by the improved result, and also by positive effects from the net working capital and the sale of assets, the company’s free cash flow on 31 December 2021 was €69 million (previous year: €–10 million). The positive free cash flow and the further repayment of financial liabilities led to a net financial debt after nine months of just €6 million (March 31, 2021: €67 million). Leverage was therefore at zero (corresponding quarter of the previous year: –1.2). Boosted by the positive net result after taxes, the Group’s equity ratio rose from 5.0% on 31 March 2021 to 7.2%. The equity ratio for the Heidelberg parent company is at a stable level of around 28%.
Sales forecast for financial year 2021/2022 specified to at least €2.1 billion
Based on incoming orders and net sales achieved in the first three quarters, Heidelberg specifies that expected sales volumes will be at least € 2.1 billion (previously: at least € 2 billion) for the financial year 2021/2022. As already announced, the EBITDA margin based on sales is still expected to be between 7 and 7.5%. Ensuring the availability of parts in the struggling supply chain situation and the development of the pandemic situation remain challenging. Following significant losses in previous years, Heidelberg is expecting a slightly positive net result after taxes in the financial year 2021/2022. That being the case, it is envisaged that leverage will remain at a low level.
