Germany-based mechanical engineering company Heidelberger Druckmaschinen has reported strong performance in the first quarter (Q1) of financial year 2023/2024 (FY23/24).

In the first three months to 30 June 2023, Heidelberg registered total sales of €544m ($598.6m), up from €530m in the corresponding period a year ago.

The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q1 FY23/24 was €42m, which was above the previous year’s figure by €24m on the adjusted figure.

Its adjusted EBITDA in percentage of net sales was 7.7% in Q1 FY23/24, compared with 4.6% in the same period in 2022.

During the reported period, Heidelberg’s net result after taxes was €10m.

The company’s incoming orders grew rapidly in Asia over the quarter while demand was low in other markets.

The company’s Packaging Solutions segment recorded strong growth of approximately 25% in incoming orders in Q1 FY23/24.

In May this year, the company launched ‘Boardmaster’ for a more productive packaging printing process, which generated initial sales over the quarter.

Heidelberg CEO Ludwin Monz said: “Heidelberg is strategically well-positioned in its core market of printing and can thus cushion restrained developments in other areas.”

During the quarter, the company restructured its loans and also agreed to scale up the credit facility with its bank consortium late last month.

Heidelberg CFO Tania von der Goltz added: “The newly agreed financing structure underlines the financial market’s confidence in the strategic approach we have adopted to further boost the company’s financial strength and step up our investments in growth areas.”