Hartmann lifted its profit margin in the second quarter of the year and continued to see progress on the American markets, while the European business was marked by intensifying price competition. We implemented a number of efficiency improvement measures in Europe and propose closing down our German factory to further strengthen our competitiveness and profitability by transferring its volume to other factories which are currently being expanded. We maintain our full-year guidance for 2015.

CEO Ulrik Kolding Hartvig: "Overall, our business generated good results in Q2, despite intensifying price competition on the European markets. We continued to see progress on the American markets, while developments in Europe underline a need to enhance efficiency. In Q2, we made a number of organisational adjustments at our European factories and at our headquarters, and today we propose closing down our German factory to further strengthen our competitiveness and profitability by transferring its volume to other factories where capacity is currently being expanded. We maintain our full-year guidance for 2015 based on the positive trend in H1 and our activities to enhance efficiency in our European business in a highly competitive market."

Q2 2015
  • Total revenue grew to DKK 481 million (2014: DKK 351 million) with operating profit* at DKK 42 million (2014: DKK 17 million), corresponding to a profit margin* of 8.8% (2014: 4.9%). Foreign exchange gains lifted revenue by DKK 28 million and operating profit by DKK 17 million.
  • In Europe, revenue was DKK 266 million (2014: DKK 282 million) and operating profit DKK 11 million (2014: DKK 12 million), corresponding to a profit margin of 4.2% (2014: 4.1%). Revenue from the sale of moulded-fibre packaging remained stable. The decrease in total revenue was attributable to lower contributions from Hartmann's other activities.
  • Revenue from our American business grew to DKK 215 million (2014: DKK 69 million) and operating profit to DKK 37 million (2014: DKK 12 million), corresponding to a profit margin of 17.0% (2014: 16.6%). The positive trend was attributable to the addition of the South American activities in early 2015 and the utilisation of the expanded production capacity in North America combined with foreign exchange gains.
  • In Q2, we made a number of organisational adjustments in our European production network and at our headquarters in order to reduce costs, increase profitability and establish a platform for enhanced efficiency at our European factories. In addition, management has today proposed closing down our factory in Germany and transferring its volume to other factories at which capacity is currently being expanded. The legally required consultations with employee representatives will take place shortly. The adjustments led to special costs of DKK 14 million in Q2, and we expect special costs of about DKK 90-110 million for 2015.
H1 2015
  • For H1 2015, total revenue grew to DKK 1,061 million (2014: DKK 764 million), and operating profit* was DKK 104 million (2014: DKK 62 million), corresponding to a profit margin* of 9.8% (2014: 8.1%). Foreign exchange gains lifted our revenue by DKK 42 million and our operating profit by DKK 25 million.
  • In Europe, revenue was DKK 608 million (2014: DKK 623 million), and operating profit was DKK 44 million (2014: DKK 50 million), corresponding to a profit margin of 7.2% (2014: 8.0%).
  • In the Americas, revenue grew to DKK 454 million (2014: DKK 142 million) and operating profit to DKK 72 million (2014: DKK 24 million), corresponding to a profit margin of 15.9% (2014: 17.1%).
  • Cash flows from operating activities rose to a net inflow of DKK 118 million (2014: an inflow of DKK 52 million), and return on invested capital was 22% (2014: 21%).
Outlook for 2015
  • We maintain our full-year guidance of revenue of DKK 2.0-2.1 billion and a profit margin before special items of 10-11.5%.

On Friday 21 August 2015 at 9.00 (CET), Hartmann will host a conference call at which CEO Ulrik Kolding Hartvig and CFO Marianne Rørslev Bock will review the financial results, the outlook and answer questions. Registration is not required. The conference call will be conducted in English and can be heard live at investor.hartmann-packaging.com, where relevant telephone numbers, conference code and the accompanying presentation will be available.

For further information, please contact:

Ulrik Kolding Hartvig
CEO
Phone: (+45) 45 97 00 57

* Operating profit refers to operating profit before special items and profit margin to profit margin before special items.

Interim report Q2 2015

distributed by