Heidelberg hails success of subscription print
Heidelberg has released its third-quarter results for the 2017-18 financial year. The company is continuing its ‘digital transformation’, and has successfully launched its new subscription print service.
Group sales totalled €1.657 billion ($2.61 billion AUD), slightly down from the previous year’s figure; however, when changes in exchange rates are factored in, sales show a slight increase. Incoming orders grew 16 percent from the previous quarter to €678 million (approximately $1 billion AUD).
The press-manufacturing giant has also signed initial agreements for its subscription service, where customers are ensured a performance product comprising press, services, consumables, and software over a period of several years, according to a press release.
Rainer Hundsdörfer, CEO, praised Heidelberg’s ‘systematic transformation into a modern digital technology company’. “The considerable customer demand for our new digital solutions is just what we were hoping for. This applies to the subscription models setting a new trend in our sector, our e-commerce offerings of the new Digital Unit, and our industrial digital presses for packaging and labels.
“Our medium-term target of using technological leadership, digital transformation, and operational excellence to generate sales of some €3 billion and a net profit after taxes in excess of €100 million is increasingly within our grasp,” he said.
Heidelberg’s EBITDA has also climbed to €105 million ($165 million AUD), an 11.7 percent increase from €94 million ($148 million AUD) the previous year. Dirk Kaliebe, CFO Heidelberg, said the company’s financing structure was very solid. “We have a low leverage and maintain sufficient liquidity to finance our planned investments in new business models. In addition, further acquisitions might become an option, if they help speed up our digital transformation,” he said.