Gebr. Heinemann Talking Points VIII
The outlook for 2023
“Q1 trading is very positive, +51% above last year and ahead of budget. We are confident we can reach pre-crisis turnover and that we will grow +30% year-on-year in 2023.” So said a bullish CFO Dr. Kai Deneke about the prospects for the year ahead at Gebr. Heinemann.
Investment in systems to continue modernising the company will accelerate, he added. Last year, at the Hamburg headquarters, Heinemann spent over €12 million in the development of processes and systems, and in 2023 it will almost double that amount.
“Uncertainties remain,” Deneke noted. “We must carefully manage our costs and cash flow. We don’t know how quickly the Chinese customers will return. There remains the Ukraine-Russia conflict and supply chain, though improved, remains an issue.”
‘No limits’ – The strong growth trajectory should continue through 2023, though headwinds remain (Frankfurt Airport pictured)
Deneke also hailed that return to profitability in 2022 – after a breakeven year in 2022 – as especially significant.
“This came without any special effects or conditions, from government supports to agreements with the airports. This was really about our own efforts, careful management and cost discipline.
Locations such as Istanbul will continue to drive growth as other regional markets, notably in Asia Pacific, return to strength
“From a CFO perspective, another great result was that we reached compliance with our group financing covenants (based on a syndicated loan agreed in early 2020) two quarters ahead of plan.”
In November, the company extended its syndicated loan agreement with banking partners until January 2026 – which Deneke described as “a strong sign of our banks’ great trust in us as well as in the travel market. Our financing is secured and we have sufficient funds available for the projects and investments that we have prioritised in our group strategy.”
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The Moodie Davitt eZine
Issue 323 | 5 May 2023
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