The figures released today (6 May) for the period spanning 1 April 2021 to 31 March 2022 showed that, at €2.183bn (£1.87bn), the German manufacturer’s sales were around 14% higher than the previous year, and met the company’s target of at least €2.1bn.

The noticeable improvement in the investment climate was also reflected, Heidelberg said, particularly in the increase in incoming orders received; by more than €450m year-on-year to €2.454bn.

Both commercial printing and packaging printing recorded significant year-on-year growth during the year, with the increase in commercial printing being stronger due to the particularly weak comparative period, which was affected by the pandemic.

Demand picked up across almost all products and in all regions, with investments in new presses being the main driver. As of 31 March 2022, the order backlog stood at around €900m.

“In a challenging environment, we have grown in all core business areas, both in terms of sales and earnings,” said Dr Ludwin Monz, who took over as CEO of Heidleberg on 1 April 2022 and is chairman of the executive board.

“The high order backlog resulting from the noticeable market recovery in the past fiscal year provides a good foundation for sales in the new fiscal year. However, the effects of the war in Ukraine are currently presenting us, like most other companies, with challenges. We have to deal with the economic uncertainty and the significant increase in raw material and energy prices.”

He added: “Heidelberg has been extremely successful in coming out of the trough of the Covid-19 pandemic. We will continue to work on strengthening our core business in the printing sector. This will free us up to expand into new markets at the same time.”

The company’s EBITDA increased to €160m in the financial year, from €95m in the previous year. Adjusted for comparable effects from the previous year, the operating improvement underlying EBITDA alone amounted to more than €100m.

The EBITDA margin in relation to sales was around 7.3%, which was both above the previous year’s figure of 5% and within Heidelberg’s target.

“In recent years, we have significantly reduced our cost base, turned free cashflow positive and completely eliminated net financial debt. This is benefitting us today in these uncertain times,” said Heidelberg chief financial officer Marcus Wassenberg.

“However, we must not rest on our laurels and must continue to work on increasing our profitability.”

The company’s preliminary net result after taxes improved to €33m, compared to a prior year loss of €43m. Free cashflow for the full year stood at €88m.

Heidelberg will publish its annual financial statements for fiscal year 2021/22 on 9 June 2022.

The company's share price was up by 1% to €1.96 at the time of writing (52-week high: €3.07, low: €1.31).