Packaging print solutions is a key part of a major new strategy from the world’s biggest press manufacturer, Heidelberg, with the company intending to invest strongly to develop its labels and packaging portfolio.
Heidelberg has outlined a new dual-track strategy, which includes an expansion of its printing portfolio, and unlocking new unrelated markets. The company presented its new strategy as it revealed its year-end figures, which showed it exceeded targets.
The new business strategy will lay the foundation for future investments. Under the new dual-track strategy, Heidelberg is pursuing two key strategic approaches. Firstly, the company is looking to make an impression on the printing market beyond its business with sheetfed offset presses, especially in the packaging market and digital printing. And, secondly, as it has already done with its wallbox business for electric car charging, Heidelberg will be unlocking new markets alongside its core business.
The Packaging Solutions division now accounts for half of Heidelberg’s revenue. Sales for the year rose by 11.5 per cent to €2.44bn, slightly ahead of its target of €2.3bn, and up by 12 per cent on the previous year. EBITDA likewise was ahead of target, at 8.6 per cent against 8 per cent. Net profit almost trebled to €91m, up from the prior year’s figure of €33m.
Incoming orders dipped slightly by one per cent, while the order backlog reduced by six per cent to €848m from €901m the previous year.
Its strategy for printing includes investing in its packaging operations, and “going digital in commercial printing”. Heidelberg did have a B1 inkjet digital press, the Primefire, which was aimed at packaging printing, but pulled out of the project three years ago, saying it was ahead of its time. It intends to self-fund its investments in its growth from its free cash flow.
Recent innovations in packaging from Heidelberg include the new generation of Speedmaster XL 106 sheetfed offset presses, enabling folding carton manufacturers, in particular, to increase their net output by up to 10 per cent. The latest development is the Boardmaster flexographic web printing system, a completely new press concept, doubles the productivity of price-sensitive folding carton printing compared to the predecessor model.
Heidelberg intends to use this technology to support its strategy and growth. In line with its dual-track strategy, it is also focusing on growth in digital printing – a segment that is enjoying the strongest growth in the label market, with a rate of around six per cent. The company is looking to build on its position in this market with Gallus One, which it says is the first fully digital and highly automated label printing system. Gallus is about to celebrate its centenary, next week, by opening a new Customer Experience Centre in Switzerland.
Heidelberg said its costs would increase in the coming year, particularly energy costs, which meant it would be forced to raise prices on its products. It forecast its EBITDA would go to 7.2 per cent for the new year as a result, on sales that would remain at the same €2.44bn level as this year.
