H+H INTERNATIONAL A/S Lautrupsgade 7, 6.
2100 Copenhagen Ø Denmark
+45 35 27 02 00 Telephone
info@HplusH.com www.HplusH.com CVR No. 49 61 98 12
LEI: 3800GJODT6FV8QM841
Date:
15 November 2017
Highlights for the period 1 January to 30 September 2017Revenue 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).
For further information please contact:
Michael T Andersen, CEO, or Bjarne Pedersen, Vice President, Business Development & IR, on telephone +45 35 27 02 00.
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."
H+H's core activity is the manufacture and sale of aircrete, with a revenue in 2016 of DKK 1.6 billion. The main product is blocks used for building new houses, mainly in the low-rise segment. H+H has 13 aircrete factories in Northern and Central Europe and Northwest Russia with a total output of more than 3 million cubic metres of aircrete a year and has a leading position in most of its markets. H+H has around 1,000 employees and is listed on Nasdaq Copenhagen.
Key figures - H+H Group
Q3 | Q3 | Q1-Q3 | Q1-Q3 | Full-year |
2017 | 2016 | 2017 | 2016 | 2016 |
Amounts in DKK million
Income statement | |||||
Revenue | 430.4 | 438.7 | 1,252.0 | 1,264.1 | 1,610.6 |
Gross profit | 114.4 | 115.6 | 324.5 | 320.7 | 404.8 |
EBITDA before special items | 70.6 | 63.7 | 181.4 | 166.1 | 210.6 |
EBITDA | 65.8 | 63.2 | 162.3 | 163.0 | 213.6 |
EBIT before special items | 51.2 | 44.9 | 123.9 | 104.8 | 122.3 |
EBIT | 46.4 | 44.5 | 104.8 | 101.7 | 125.4 |
Net financials | (5.1) | (4.6) | (13.4) | (15.3) | (21.5) |
Profit before tax from continuing operations | 41.3 | 39.8 | 91.4 | 86.3 | 103.9 |
Profit from continuing operations | 39.2 | 32.3 | 79.0 | 63.7 | 95.9 |
Profit/loss from discontinued operations | (1.4) | (0.7) | (3.0) | (2.1) | (6.7) |
Profit for the period | 37.8 | 31.6 | 76.0 | 61.7 | 89.2 |
Non-current assets | 874.3 | 883.8 | 874.3 | 883.8 | 901.3 |
Current assets | 411.7 | 326.1 | 411.7 | 326.1 | 309.3 |
Share capital | 107.9 | 107.9 | 107.9 | 107.9 | 107.9 |
Equity | 355.1 | 232.5 | 355.1 | 232.5 | 277.5 |
Non-current liabilities | 620.6 | 613.5 | 620.6 | 613.5 | 590.2 |
Current liabilities | 310.3 | 363.9 | 310.3 | 363.9 | 342.9 |
Total equity and liabilities | 1,286.0 | 1,209.9 | 1,286.0 | 1,209.9 | 1,210.6 |
Investments in property, plant and equipment | 8.0 | 23.3 | 38.1 | 39.8 | 83.3 |
Net Interest-bearing debt (NIBD) | 434.4 | 385.0 | 434.4 | 385.0 | 386.6 |
Cash flow from operating activities | 52.5 | 72.9 | 29.2 | 124.4 | 143.1 |
Cash flow from investing activities | (7.9) | (21.9) | (72.6) | (48.9) | (75.0) |
Free cash flow | 44.6 | 51.0 | (43.4) | 75.5 | 68.1 |
Cash flow from discontinued operations | (2.7) | (1.9) | (5.7) | (8.5) | (4.6) |
Gross margin | 26.6% | 26.4% | 25.9% | 25.4% | 25.1% |
EBIT margin before special items | 11.9% | 10.2% | 9.9% | 8.3% | 7.6% |
EBIT margin | 10.8% | 10.1% | 8.4% | 8.0% | 7.8% |
Return on invested capital before special items | 17.8% | 16.0% | 17.8% | 16.0% | 15.1% |
Return on invested capital (ROIC) | 16.2% | 18.6% | 16.2% | 18.6% | 15.5% |
Return on equity | 35.2% | 32.2% | 35.2% | 32.2% | 33.5% |
Solvency ratio (*) | 27.6% | 19.2% | 27.6% | 19.2% | 22.9% |
Net interest-bearing debt/EBITDA | 2.0 | 1.7 | 2.0 | 1.7 | 1.8 |
Share price, end of period (DKK) | 114.0 | 73.5 | 114.0 | 73.5 | 75.5 |
Book value per share, end of period (DKK) | 33.1 | 21.6 | 33.1 | 21.6 | 25.8 |
Earnings per share (adjusted) | 3.5 | 2.9 | 7.0 | 5.7 | 8.3 |
Diluted earnings per share (adjusted) | 3.5 | 2.9 | 7.0 | 5.7 | 8.3 |
*The solvency ratio for Q1-Q3 2016 is adjusted reflecting a reclassification in the balance sheet of payable customer rebates and bonuses.
Interim financial report Q1-Q3 2017
MANAGEMENT'S REVIEW RevenueRevenue for the third quarter of 2017 remained stable in local currencies (organic growth) and decreased by 2% in DKK to DKK 430.4 million. Revenue for the first three quarters increased by 2% in local currencies (organic growth) and decreased to DKK 1,252.0 million. We have seen higher prices in all core markets which have more than offset the adverse volume development.
Gross marginThe gross margin in the third quarter was 26.6%, against 26.4% in 2016. We see positive impact from the price/volume development and our excellence programmes offset inflation. Adjusted for the additional transport costs incurred in the UK due to the import of products from Poland, the gross margin would have been 27.5%.
Special itemsSpecial 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 to the UK from Poland and DKK 1.0 million is restructuring costs related to 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 to the UK supplied by H+H Poland.
EBITDAEBITDA before special items for the third quarter was DKK 70.6 million and DKK 65.8 million after special items (2016: DKK 63.7 million and DKK 63.2 million).
Higher sales prices were partly offset by volume decline and DKK (2.3) million impact from currency development.
Operating profit (EBIT)Operating profit before special items for the third quarter was DKK 51.2 million, (2016: DKK 44.9 million), a change of DKK 6.3 million.
Operating profit before special items for the first three quarters was DKK 123.8 million (2016: DKK 104.8 million) a change of DKK 19.0 million.
EBIT margin before special items for the third quarter was 11.9% and 9.9% for the first three quarters (2016: 10.2% and 8.3%).
Profit before tax from continuing operations Third-quarter profit before tax from continuing operations was DKK 41.3 million (2016: DKK 39.8 million), a change of DKK 1.5 million.Profit before tax from continuing operations
Western Europe | 40.9 | 40.8 | 111.1 | 118.2 |
Eastern Europe | 9.7 | 8.8 | 10.3 | (9.1) |
Eliminations and | ||||
unallocated items | (9.3) | (9.8) | (30.0) | (22.8) |
Total | 41.3 | 39.8 | 91.4 | 86.3 |
Q3 Q1-Q3 Amounts in DKK million 2017 2016 2017 2016
Eliminations and unallocated itemsUnallocated items in the third quarter amounted to DKK (9.2) million, on par with 2016. Unallocated items for first three quarters amounted to DKK (30.0) million, a change of DKK (7.2) million against 2016, mainly due to gain on sale of assets in 2016.
Comprehensive incomeThe total comprehensive income for the third quarter of DKK 11.4 million comprises the profit for the period of DKK 37.8 million, foreign exchange adjustments of DKK (4.4) million and actuarial losses less deferred tax of DKK (22.0) million.
Please refer to note 6 "Pension obligations" for further comments on the adjustment of the UK pension obligation.
TaxationTax for the third quarter was DKK (2.1) million (2016: DKK (7.6) million), a change of DKK 5.5 million. The tax expense is slightly offset by a positive deferred tax adjustment.
Discontinued operations and assets held for sale Discontinued operations generated a loss of DKK (1.4) million in the third quarter (2016: DKK (0.7) million).Please refer to note 11 "Discontinued operations and assets held for sale" for further comments.
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 4/18
H+H International A/S published this content on 15 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 November 2017 08:04:07 UTC.
Original documenthttp://www.hplush.dk/documents/10180/13907742/352_Interim financial report Q1-Q3 2017.pdf
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