Heidelberg full year – impact of COVID-19 is apparent

During a challenging financial year 2019/20 (April 1, 2019 to March 31, 2020), business operations at Heidelberg were impacted by the increasingly deteriorating economic environment caused by the Covid-19 pandemic. Based on preliminary figures yet to be audited, Group sales amounted to €2,349m, some 6% down on the previous year. Restrained investment activity caused by the economic circumstances had a negative impact on business, first and foremost in Europe. During the fourth quarter, macroeconomic conditions worsened considerably and unexpectedly due to the Covid-19 pandemic and this was clearly reflected in sales, which at €659m, were significantly lower than in the same quarter of the previous year (€797m).

The preliminary operating result (EBITDA) excluding the effects of restructuring was €102m, after being €180m in the previous year. The EBITDA margin excluding the effects of restructuring thus reached 4.3% and was below the previous year’s figure of 7.2% due to volume and product mix effects. Furthermore, the non-recurring expenditure for the company’s realignment (€275m) impacted the result for the financial year under review as planned. The provisional net result after taxes was €–343m (previous year: €21m).

“Financial year 2019/20 was shaped by a significant downturn in the global economic climate and that affected our customers and Heidelberg itself, too. Through our package of measures which we have announced in March, we have paved the way for Heidelberg to achieve stability, improve our liquidity and increase profitability step by step for the long term. The Covid-19 pandemic poses significant challenges for Heidelberg and the entire industry, which we will master alongside our customers and using what Heidelberg has to offer as a technology leader in the printing industry. By joining forces, we will emerge stronger from the crisis,” says Rainer Hundsdörfer, CEO of Heidelberg.

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