Yahoo Finance

• Orders Received: Slightly more than EUR700 million, a 19% increase from the previous year.

• Sales: EUR403 million, down due to seasonal effects and customer wait-and-see approach.

• Adjusted EBITDA Margin: Negative at minus 2.3%.

• Free Cash Flow: Minus EUR103 million, impacted by increased inventories.

• Order Backlog: EUR923 million, with a book-to-bill ratio of 1.7.

• Packaging Solutions Orders: EUR364 million, a 17% increase year-over-year.

• Print Solutions Orders: EUR336 million, a 21% increase year-over-year.

• Net Income: Minus EUR41.9 million, compared to EUR9.8 million in the previous year.

• Earnings Per Share: Minus EUR0.13.

• Operating Cash Flow: Minus EUR101 million, compared to minus EUR20 million in the previous year.

• Equity: EUR499 million, with an equity ratio of 22.7%.

• Net Financial Position: Minus EUR34 million.

• Sales Guidance: Aiming for prior year's level of around EUR2.4 billion.

• Adjusted EBITDA Margin Guidance: Projected to improve to around 7.2% for the full year.

• Warning! GuruFocus has detected 2 Warning Signs with HBGRY.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Heidelberger Druckmaschinen AG (HBGRY) recorded its best quarterly order intake since 2016, with orders exceeding EUR 700 million, a 19% increase from the previous year.

• The company showcased strong innovation leadership at the drupa trade fair, which positively impacted its market position and order intake.

• The order backlog reached EUR 923 million, providing a solid foundation for future sales and insulating the company from major market risks.

• Heidelberger Druckmaschinen AG (HBGRY) has a strategic growth plan focusing on its core business in Print and Packaging, leveraging its strong market position and technological leadership.

• The company is confident in achieving its full-year guidance, with expected improvements in sales and adjusted EBITDA margin projected to reach around 7.2% for the full year.

Negative Points

• Sales for the first quarter were down to EUR 403 million due to seasonal effects and a customer wait-and-see approach ahead of drupa.

• The adjusted EBITDA margin was negative at minus 2.3%, impacted by the decline in sales and EUR 10 million in drupa-related expenses.

• Free cash flow was negative at minus EUR 103 million, affected by a significant upswing in inventories as the company prepares for increased factory output.

• Personnel costs remain structurally high relative to the current size of the business, posing a challenge to profitability.

• The Technology Solutions segment continues to be loss-making, with a need for strategic reassessment to achieve profitability.