H+H International AS H1 2022 Interim Financial Report
Today, the Board of Directors of H+H International A/S (hereinafter referred to as “H+H” or “the Company”) has adopted the Interim Financial Report for the second quarter (“Q2 2022”) and the first six months of 2022 (“H1 2022”).
CHIEF EXECUTIVE OFFICER MICHAEL T. ANDERSEN QUOTE
“This was an exceptionally strong quarter for H+H fuelled by continued high activity and customer demand. I am pleased with the solid performance across the business in the first half of 2022, which demonstrates our continued ability to negotiate sales price increases with customers to offset the continued inflationary pressure. While the current macroeconomic landscape is clearly causing uncertainties and is expected to weigh on future construction activity, we maintain our financial expectations for the full year. Our focus will remain on delivering strong operational performance and continuing to service customers across our footprint.”
PERFORMANCE HIGHLIGHTS FOR Q2 2022 (Q2 2021)
- Revenue increased by 20% to DKK 1,000 million (DKK 836 million).
- Revenue growth before acquisitions and divestments measured in local currencies (“organic growth”) was 13% (39%).
- Gross profit was DKK 320 million (DKK 251 million), corresponding to a gross margin of 32% (30%).
- EBIT before special items1 was DKK 177 million (DKK 125 million), corresponding to an EBIT margin before special items of 18% (15%).
- Net profit of DKK 129 million (DKK 93 million).
- Free cash flow was DKK 165 million (DKK 172 million).
- Financial gearing was 0.5 times EBITDA at the end of Q2 2022 (0.3 times EBITDA at the end of Q2 2021).
FINANCIAL OUTLOOK FOR 2022
The financial outlook for the full year 2022 is maintained:
- Revenue growth before acquisitions and divestments measured in local currencies ("organic growth") is expected to be in the range of 15% to 20%.
- EBIT before special items is expected to be in the range of DKK 440 million to DKK 520 million.
The expectations for H+H’s financial performance in 2022 are based on certain specific and general assumptions. Please refer to the H1 2022 Interim Financial Report for more information about the specific and general assumptions.
FINANCIAL HIGHLIGHTS FOR THE PERIOD 1 JANUARY 2022 TO 30 JUNE 2022
| DKK million | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 |
| Sales volume (thousand cubic metres) | 1,182 | 1,192 | 2,269 | 2,152 |
| Revenue | 1,000 | 836 | 1,874 | 1,478 |
| Organic growth | 13% | 39% | 20% | 14% |
| Gross margin before special items | 32% | 30% | 30% | 30% |
| EBITDA before special items | 227 | 172 | 386 | 281 |
| EBIT before special items | 177 | 125 | 287 | 189 |
| EBIT margin before special items | 18% | 15% | 15% | 13% |
| Special items | (9) | - | (19) | - |
| Return on Invested Capital (ROIC) | 26% | 21% | 26% | 21% |
| NIBD/EBITDA before special items ratio | 0.5x | 0.3x | 0.5x | 0.3x |
| Free cash flow | 165 | 172 | 102 | 140 |
H1 2022 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the H1 2022 Interim Financial Report, a conference call for investors and analysts is scheduled for Friday 19 August 2022, at 10:00 a.m. CEST. On the call, Chief Executive Officer (“CEO”) Michael T. Andersen and Chief Financial Officer (“CFO”) Peter Klovgaard-Jørgensen will present the interim financial report. The presentation will be followed by a Q&A session. Investors and analysts are invited to participate via phone (PIN code: 275042):
DK: +45 78768490
UK: +44 2037696819
US: +1 6467870157
- Other participants can follow the conference call via live webcast here.
- The presentation slides for the conference call will be made available beforehand here.
- A replay of the conference call will be available afterwards on H+H’s Investor Relations website here.
For further information, please contact:
Andreas Holkjær
Head of Investor Relations and Treasury
+45 24 48 03 67
aho@hplush.com
1 No special items were recognised in the period from 1 April 2021 to 30 June 2021
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