Today, the Board of Directors of H+H International A/S (hereinafter referred to as “H+H” or “the Group”) adopted the interim financial report for the first quarter of 2022 (“Q1 2022”) .
QUOTE FROM CEO MICHAEL T. ANDERSEN
“The first quarter showed a strong financial performance with organic growth of 29%, supporting the successful implementation of selling price increased to counter inflationary pressure on production costs and the negative impact on margins. EThis was further evidenced by a record EBIT before special items and a strong margin of 13% for the quarter. We are waiting the inflationary pressure to stay in place in the short and medium term, and we are ready to introduce further away Sales price increases to protect our profit margins.”
PERFORMANCE HIGHLIGHTS FOR Q1 2022 (Q1 2021)
- Revenue increased by 36% to DKK 874 million (DKK 642 million). Revenue growth before acquisitions and divestitures measured in local currencies (“organic growth”) was 29% (minus 9%).
- Gross profit was DKK 244 million (DKK 188 million), corresponding to a gross margin of 28% (29%).
- EBIT before special items1 was DKK 110 million (DKK 64 million), corresponding to an EBIT margin before exceptionals of 13% (10%).
- Net profit of 72 million DKK (49 million DKK).
- Free cash flow was negative DKK 63 million (negative DKK 32 million).
- Leverage was 0.7x EBITDA at the end of Q1 2022 (0.6x at the end of Q1 2021).
CHANGE IN THE EXECUTIVE BOARD
As advertised in company announcement no. 467 of February 28, 2022, Dr. Jörg Brinkmann will be appointed as the new Chief Executive Officer, replacing Michael T. Andersen who will leave the H+H group. The changes will take effect no later than October 1, 2022, and Michael T. Andersen will remain in his role as CEO until Dr. Jörg Brinkmann joins the company. Following the changes, the Board of Directors will consist of Dr. Jörg Brinkmann and Peter Klovgaard-Jørgensen.
FINANCIAL SALVATIONGHLIGHTS FOR THE PERIOD FROM JANUARY 1, 2022 TO MARCH 31, 2022
|million danish kroner||Q1 2022||Q1 2021|
|Sales volume (thousands of cubic meters)||1,087||960|
|Gross margin before special items||28%||29%|
|EBITDA before special items||159||109|
|EBIT before special items||110||64|
|EBIT margin before special items||13%||ten%|
|Return on Invested Capital (ROIC)||21%||16%|
|NIBD/EBITDA ratio before exceptional items||0.7x||0.6x|
|Free movement of capital||(63)||(32)|
FINANCIAL OUTLOOK FOR 2022
The financial outlook for the full year 2022 is updated as follows:
- Revenue growth before acquisitions and divestitures measured in local currencies (“organic growth”) is expected to be between 15% and 20% (previously 10% to 15%).
- EBIT before exceptional items is expected to be between DKK 440 and 520 million (previously between DKK 420 and 500 million).
The financial outlook for 2022 is based on the following specific assumptions:
- Exchange rates, mainly the pound sterling (“GBP”), the euro (“EUR”) and the Polish zloty (“PLN”), remain at end-April 2022 levels.
- Energy costs are expected to remain at end-April 2022 levels.
- Commodity costs continue to be impacted by mild inflation from end-April levels.
Q1 2022 INTERIM FINANCIAL REPORT CALL
As part of the publication of the interim financial report for the first quarter of 2022, a conference call for investors and analysts is scheduled for Monday, May 9, 2022, at 10:00 a.m. CEST. During the call, CEO Michael T. Andersen and Chief Financial Officer Peter Klovgaard-Jørgensen will present the interim financial report. The presentation will be followed by a question and answer session. Investors and analysts are invited to participate by telephone:
DK: +45 78150108
UK: +44 3333009269
USA: +1 6319131422 PIN: 92922209#
- Other participants can follow the conference call via a live webcast here.
- Presentation slides from the conference call will be available in advance here.
- A replay of the conference call will then be available on H+H’s Investor Relations website here.
For more information, please contact:
Head of Investor Relations and Treasury
+45 24 48 03 67
1 No special items were recognized during the period from January 1, 2021 to March 31, 2021