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Interim financial report - Q1-Q3 2017

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Company announcement No: 352


H+H International A/S
Lautrupsgade 7, 6th. Floor
2100 Copenhagen Ø
Denmark
Tel.: +45 35 27 02 00
www.HplusH.com
Company reg. no. 49 61 98 12
LEI 213800GJODT6FV8QM841



Highlights for the period 1 January to 30 September 2017

  • Revenue for the third quarter remained stable in local currencies and decreased by 2% in DKK to DKK 430 million (2016: DKK 439 million). Revenue for the first three quarters increased by 2% in local currencies and decreased by 1% in DKK to DKK 1,252 million (2016: DKK 1,264 million).

  • EBITDA before special items for the third quarter was DKK 70.6 million (2016: DKK 63.7 million) and DKK 181.4 million (2016: DKK 166.1 million) for the first three quarters.

  • EBIT before special items for the third quarter was DKK 51.2 million (2016: DKK 44.9 million) and DKK 123.9 million (2016: DKK 104.8 million) for the first three quarters. EBIT margin before special items for the third quarter was 11.9% (2016: 10.2%) and 9.9% (2016: 8.3%) for the first three quarters.

  • Special items for the third quarter was DKK 4.8 million (2016: DKK 0.5 million), of which DKK 3.8 million is related to import of products sold to the UK supplied by Poland. Special items for the first three quarters was DKK 19.1 million (2016: DKK 3.1 million), of which DKK 14.1 million is related to import of products sold to the UK supplied by Poland.

  • Net profit for the third quarter was DKK 37.8 million (2016: DKK 31.6 million) and DKK 76.0 million (2016: DKK 61.7 million) for the first three quarters.

  • Investments for the third quarter was DKK 8.0 million (2016: DKK 23.3 million) and DKK 38.1 million for the first three quarters (2016: DKK 39.8 million).

  • Free cash flow for the third quarter was DKK 44.6 million (2016: 51.0 million) and DKK (43.4) million for the first three quarters (2016: DKK 75.5 million). The free cash flow has been negatively affected by the planned building of stocks in the UK and increasing net investments.

  • Net interest-bearing debt at 30 September 2017 was DKK 434.4 million (30 September 2016: DKK 385.0 million).

H+H updates its outlook for 2017:

  • Revenue growth is expected to be around 4% (measured in local currencies) against the previously announced 5-7%.

  • EBITDA before special items is expected to be DKK 230-240 million against the previously announced DKK 220-240 million.

  • Special items of approximately DKK 25 million (as previously announced) cost are expected to be incurred as a result of the Borough Green factory upgrade and resulting need to import products from Poland. The increased transportation costs are expensed in production costs at the point of sale and treated as a special item.

  • Investments excluding acquisitions and divestments are expected to be in the region of DKK 120 million as previously announced.

Quote:
“The improved profitability is due to a favourable price/volume development and results from our excellence programmes” says CEO Michael T. Andersen. “The market outlook remains positive for all markets except Russia, and we are well-positioned to take advantage of the Borough Green factory upgrade and harvest the benefits from the announced acquisition (which is awaiting customary approval by the Polish authorities) of Grupa Silikaty in Poland.”

 

For additional information please contact:
Michael T Andersen, CEO, or Bjarne Pedersen, Vice President, Business Development & IR, tel.: +45 35 27 02 00.

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