Heidelberg Initiates Further Reorganization; Announces Financial Targets, Site Consolidation
Target result for financial year 2013/2014 achieved with net profit of € 4 million
Although factors such as exchange rate movements resulted in a decline in Group sales from the previous year's figure of € 2.735 billion to € 2.434 billion (€ 2.536 billion after adjustment for exchange rate movements) in reporting year 2013/2014, all result-related KPIs were far better than in the previous financial year. For example, EBITDA excluding special items rose to € 143 million in the financial year just closed (previous year: € 80 million). This led to an improvement in the EBITDA margin from about 3 percent to approx. 6 percent. Within twelve months, the result of operating activities (EBIT) excluding special items climbed from € -3 million in the previous year to € 72 million. Special items in the reporting period amounted to € -10 million (previous year: € -65 million) and the financial result was € -60 million (previous year: € -59 million). This led to a net profit for the year of € 4 million (previous year: € -117 million).
Positive cash flow and free cash flow—further reduction in net debt, with leverage
The cash flow and free cash flow were both positive in the reporting year. Reducing the company's capital commitment has compensated for payments for the Focus efficiency program totaling some € 95 million and enabled a positive free cash flow of € 22 million to be achieved (previous year: € -18 million). This reduced the net debt at the end of the financial year to € 238 million (previous year: € 261 million).
"Not only have we achieved all our results targets, but our asset and net working capital management program has also brought further successes in terms of cash flow and free cash flow and thus reducing our net debt," said Heidelberg CFO Dirk Kaliebe. "At the end of the financial year, we thus achieved our goal of reducing the leverage (net financial debt divided by EBITDA) to less than two for the first time in many years," he added.