Otto bought EUR84,267 in Heidelberger Druck shares on Aug. 1

Otto bought EUR84,267 in Heidelberger Druck shares on Aug. 1

Heidelberger Druckmaschinen AG (HBGRF) reported its Q1 2025 earnings, highlighting a significant improvement in profitability and a focus on strategic growth initiatives. The company celebrated its 175th anniversary, which boosted employee morale and strengthened company loyalty.

Key financial highlights include a 6.7% increase in adjusted EBITDA margin to 4.4% and a 16% year-over-year increase in sales to 466 million. The company is well-positioned to benefit from trends in the packaging market, particularly system-integrated innovations [1].

However, incoming orders were stable at 559 million, below last year's level, partly due to the impact of the Drupa trade fair in the previous year. Currency effects negatively impacted incoming orders and net sales, which would have improved by approximately 3% without these effects. The print packaging equipment segment saw a 28% decline in incoming orders, and the Asia Pacific region experienced a 23% decline in incoming orders compared to the prior year quarter. The company's equity declined by 29 million due to a quarterly loss and translation effects from currency conversion [1].

During the earnings call, management addressed various questions. The target of increasing sales in the technology segment to around 100 million remains valid despite the cooperation with Synchoria. The company expects to achieve this target by building capabilities and developing projects in the defense industry, aiming for a 100 million target in the industry segment. The first significant sales are expected next year [1].

Heidelberger Druckmaschinen AG is also focusing on cost avoidance and one-off expenses. Agreements with all German sites for cost avoidance are in place, and the company is about 80% through the program at its Wiesla site, with around 10 million in one-off expenses expected for the current year [1].

The market situation with customers is positive, with 15% tariffs in the US providing clarity and a good pipeline of orders. The momentum is improving, especially in growing regions like the Middle East and South America [1].

The 2.35 billion sales target is confirmed, and the weak US dollar does not pose a risk as it is part of the company's planning. To achieve this target, the company needs around 600 million in order intake per quarter [1].

In summary, Heidelberger Druckmaschinen AG reported a strong Q1 2025 with improved profitability and a focus on strategic growth initiatives. However, currency effects and the impact of the Drupa trade fair have had a negative impact on incoming orders and net sales.

References:
[1] https://finance.yahoo.com/news/heidelberger-druckmaschinen-ag-hbgrf-q1-070057130.html