• Already achieved sales: Heidelberg Boardmaster webfed flexo carton press.
    Already achieved sales: Heidelberg Boardmaster webfed flexo carton press.
Close×

The world’s biggest press manufacturer Heidelberg says it has seen a good start to the new financial year, thanks to the recovery in Asia and continued growth in the packaging segment.

The technology company’s sales in the first three months (April 1 to June 30) climbed year-on-year from €530m to €544m. The adjusted operating result (EBITDA) of €42m was around €18m up on the adjusted figure for the corresponding quarter of the previous year. The corresponding EBITDA margin was 7.7 per cent, up from the previous year of 4.6 per cent.

The net result after taxes improved to €10m, double the previous year’s €5m. On a regional level, incoming orders grew strongly in Asia, but demand in other markets was muted.

In the Packaging Solutions segment, Heidelberg recorded particularly strong growth of around 25 per cent in incoming orders. “Heidelberg is strategically well positioned in its core market of printing and can offset restrained developments in other areas,” said CEO Dr Ludwin Monz.

The new Boardmaster webfed flexo press for productive packaging printing was unveiled in May, and the company already generated initial sales in the first quarter. Heidelberg says the demand for the new Gallus One in the growth area of digital label printing also confirms the market trend.

Free cash flow improved in the first quarter compared with the prior-year figure adjusted for special items, but remained negative overall compared with the previous year at minus €27m.

The reason for this was the absence of positive special items, as had been realised in previous years. “The quarterly result shows that our value creation programme, with which we aim to significantly increase our free cash flow, remains vital,” said Heidelberg CFO Tania von der Goltz. Under the programme, the company intends to continue to offset cost increases with price increases and maintain strict cost discipline.

Heidelberg has restructured its loans, and, at the end of July, it agreed a significant increase in the credit facility with its bank consortium. This now offers a syndicated credit line of €350m over a four-year period, with an option to extend for a further year. “The newly agreed financing structure underlines the financial market’s confidence in the strategic approach we have adopted to further boost the company’s financial strength and step up our investments in growth areas,” said CFO von der Goltz.

The forecast for financial year 2023/2024 remains. Assuming the global economy does not see weaker growth than predicted by the economic research institutions, and sales remain at the same level, Heidelberg is expecting the company’s development to remain stable.

Food & Drink Business

Maxum Foods says the appointment of Adrian Lochland as the company’s first CEO is a significant milestone in the company’s growth and evolution. Lochland has been at Maxum since 2021 as executive general manager of its Animal Nutrition division.

Australia has earned its stripes as a nation of committed snackers, but this love affair with snacks isn’t without its quirks. Mintel Food & Drink associate director, Cormac Henry, says its research shows while Australians are chasing healthier options, cravings for indulgent treats remains strong. 

Bega Groups says following a 12-month review, the lack of a buyer and ongoing annual operating losses of $5-10 million are behind its decision to wind down and close peanut processing business, Peanut Company of Australia (PGA). Bega acquired the company in 2017.