H+H INTERNATIONAL A/S Tel. +45 35 27 02 00
info@HplusH.comwww.HplusH.com
Date:
17 August 2017
Revenue for the second quarter remained stable in local currencies (organic growth) and decreased by 3% in DKK to DKK 445.0 million (2016: DKK 457.5 million). First-half revenue increased by 3% in local currencies (organic growth) and remained stable in DKK to DKK 821.5 million (2016: DKK 825.4 million).
EBITDA before special items for the second quarter was DKK 73.6 million (2016: DKK 65.9 million) and DKK
110.5 million (2016: DKK 102.5 million) for the first half year.
EBIT before special items for the second quarter was DKK 54.5 million (2016: DKK 44.0 million) and DKK 72.5 million (2016: DKK 59.9 million) for the first-half. EBIT margin before special items for the second quarter was 12.2% (2016: 9.6%) and 8.8% (2016: 7.3%) for the first half year.
Special items for the second quarter was DKK 8.7 million (2016: DKK 1.4 million), of which DKK 4.7 million is related to import of products to the UK from Poland and DKK 4.0 million is related to the acquisition of the Grupa Silikaty. Special items for the first-half was DKK 14.3 million, (2016: DKK 2.7 million) of which DKK 10.3 million is related to import of products to the UK from Poland.
Net profit for the second quarter was DKK 36.5 million (2016: DKK 29.0 million) and DKK 38.2 million (2016: DKK 30.1 million) for the first half year.
Investments for the second quarter was DKK 7.1 million (2016: DKK 5.9 million) and DKK 30.1 million for the first half year (2016: DKK 16.5 million).
Free cash flow for the second quarter was DKK 6.6 million (2016: 65.8 million) and DKK (88.0) million for the first half year (2016: DKK 24.5 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 June 2017 was DKK 476.8 million (30 June 2016: DKK 432.4 million).
On 7 July 2017 H+H International A/S's subsidiary H+H Polska Sp. z o.o. signed an agreement with Grupa Ozarow S.A. to acquire 99.19% of the shares in its Polish calcium silicate company Grupa Silikaty Sp. z o.o. for a total consideration of PLN 36 million (DKK 64 million) (enterprise value), of which DKK 14 million will be paid at closing. Closing of the transaction is subject to customary approvals by the Polish authorities.
H+H reiterates its outlook for 2017: Revenue growth is expected to be 5-7% (measured in local currencies), and EBITDA before special items is expected to be DKK 220-240 million. Special items of approximately DKK 25 million 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
For further information please contact:
Michael T Andersen, CEO, or Bjarne Pedersen, Vice President, Business Development & IR, on telephone +45 35 27 02 00.
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.
Quote:
"Our strong focus on bringing value added solutions to our customers has been successful, as all markets have higher prices than last year" says CEO Michael T. Andersen. "Despite the adverse volume developments, we are pleased to report increased earnings, and we see all markets except Russia continue to grow.
The Polish market is the most buoyant market in our footprint, both currently and in estimated going forward. Hence, the announced entrance (await customary approval by the Polish authorities) into the calcium-silicate business should bolster our market position in Poland."
Key figures - H+H Group
Q2 | Q2 | H1 | H1 | Full-year |
2017 | 2016 | 2017 | 2016 | 2016 |
Amounts in DKK million
Income statement | |||||
Revenue | 445.0 | 457.5 | 821.5 | 825.4 | 1,610.6 |
Gross profit | 125.0 | 118.3 | 210.1 | 205.2 | 404.8 |
EBITDA before special items | 73.6 | 65.9 | 110.5 | 102.5 | 210.6 |
EBITDA | 64.9 | 64.5 | 96.2 | 99.8 | 213.6 |
EBIT before special items | 54.5 | 44.0 | 72.5 | 59.9 | 122.3 |
EBIT | 45.8 | 42.6 | 58.2 | 57.2 | 125.4 |
Net financing costs | (3.6) | (5.2) | (8.7) | (10.7) | (21.5) |
Profit before tax from continuing operations | 42.2 | 37.4 | 49.4 | 46.5 | 103.9 |
Profit from continuing operations | 37.0 | 29.7 | 39.1 | 31.5 | 95.9 |
Profit/loss from discontinued operations | (0.5) | (0.7) | (0.9) | (1.4) | (6.7) |
Profit for the period | 36.5 | 29.0 | 38.2 | 30.1 | 89.2 |
Non-current assets | 887.7 | 881.2 | 887.7 | 881.2 | 901.3 |
Current assets | 428.6 | 338.8 | 428.6 | 338.8 | 309.3 |
Share capital | 107.9 | 107.9 | 107.9 | 107.9 | 107.9 |
Equity | 343.3 | 215.5 | 343.3 | 215.5 | 277.5 |
Non-current liabilities | 641.6 | 648.5 | 641.6 | 648.5 | 590.2 |
Current liabilities | 331.4 | 356.0 | 331.4 | 356.0 | 342.9 |
Total equity and liabilities | 1,316.3 | 1,220.0 | 1,316.3 | 1,220.0 | 1,210.6 |
Investments in property, plant and equipment | 7.1 | 5.9 | 30.1 | 16.5 | 83.3 |
Net Interest-bearing debt (NIBD) | 476.8 | 432.4 | 476.8 | 432.4 | 386.6 |
Cash flow from operating activities | 48.4 | 86.7 | (23.3) | 51.5 | 143.1 |
Cash flow from investing activities | (41.8) | (20.9) | (64.7) | (27.0) | (75.0) |
Free cash flow | 6.6 | 65.8 | (88.0) | 24.5 | 68.1 |
Cash flow from discontinued operations | (0.5) | (4.2) | (3.0) | (6.6) | (4.6) |
Gross margin | 28.1% | 25.9% | 25.6% | 24.9% | 25.1% |
EBIT margin before special items | 12.2% | 9.6% | 8.8% | 7.3% | 7.6% |
EBIT margin | 10.3% | 9.3% | 7.1% | 6.9% | 7.8% |
Return on invested capital before special items | 16.5% | 13.8% | 16.5% | 13.8% | 15.1% |
Return on invested capital (ROIC) | 15.4% | 16.2% | 15.4% | 16.2% | 15.5% |
Return on equity | 34.8% | 17.4% | 34.8% | 17.4% | 33.5% |
Solvency ratio | 26.1% | 17.7% | 26.1% | 17.7% | 22.9% |
Net interest-bearing debt/EBITDA | 2.3 | 1.9 | 2.3 | 1.9 | 1.8 |
Share price, end of period (DKK) | 108,50 | 67.5 | 108,50 | 67.5 | 75.5 |
Book value per share, end of period (DKK) | 32.0 | 26.2 | 32.0 | 26.2 | 25.8 |
Earnings per share (adjusted) | 3.4 | 2.7 | 3.5 | 2.8 | 8.3 |
Diluted earnings per share (adjusted) | 3.4 | 2.7 | 3.5 | 2.8 | 8.3 |
*The solvency ratio for H1 2016 is adjusted reflecting a reclassification in the balance sheet of payable customer rebates and bonuses as well as recognition of actuarial loss related to the UK pension obligation.
Interim financial report H1 2017
MANAGEMENT'S REVIEW RevenueRevenue for the second quarter of 2017 remained stable in local currencies (organic growth) and decreased by 3% in DKK to DKK 445.0 million. First-half revenue increased by 3% in local currencies (organic growth) and remained stable in DKK to DKK 821.5 million. Sales price increases in all markets and has more than offset an adverse volume development.
Gross marginThe gross margin in the second quarter was 28.1%, against 25.9% in 2016. The higher sales prices were partly offset by higher unit costs, partly because of additional transport costs incurred in the UK due to import of products from Poland. Adjusted for the special items gross margin would have been 29.1%.
Special itemsSpecial items for the second quarter was DKK 8.7 million (2016: DKK 1.4 million), of which DKK 4.7 million is related to import of products to the UK from Poland and DKK 4.0 million is related to the acquisition of the Grupa Silikaty. Special items for the first-half was DKK
14.3 million, (2016: DKK 2.7 million) of which DKK 10.3 million is related to import of products to the UK from Poland.
EBITDAEBITDA before special items for the second quarter was DKK 73.6 million and DKK 64.9 million after special items (2016: EBITDA before special items was DKK 65.9 million and DKK 64.5 million after special items).
Higher sales prices compensate for the volume drop and the approx. DKK (3.5) million impact from currency development.
Operating profit (EBIT)Operating profit before special items for the second quarter was DKK 54.5 million, against DKK 44.0 million in 2016, a change of DKK 10.5 million.
Operating profit for the second quarter was DKK 45.8 million, against DKK 42.6 million in 2016, a change of DKK 3.2 million.
Profit before tax from continuing operationsSecond-quarter profit before tax from continuing operations was DKK 42.2 million, against a profit of DKK
37.4 million in 2016, a change of DKK 4.8 million.
Profit before tax from continuing operations
Western Europe | 49.2 | 51.5 | 70.3 | 77.4 |
Eastern Europe | 3.5 | (3.6) | (0.1) | (17.9) |
Eliminations and | ||||
unallocated items | (10.5) | (10.5) | (20.8) | (13.0) |
Total | 42.2 | 37.4 | 49.4 | 46.5 |
Q2 H1 Amounts in DKK million 2017 2016 2017 2016
Eliminations and unallocated itemsUnallocated items in the second quarter amounted to DKK (10.5) million, on par with 2016. Unallocated items for first-half amounted to DKK (20.8) million, a change of DKK (7.8) million against 2016, mainly due to gain on sale of assets in 2016.
Comprehensive incomeThe total comprehensive income for the second quarter of 2017 of DKK 21.4 million comprises the profit for the period of DKK 36.5 million, foreign exchange adjustments of DKK (12.3) million and actuarial losses less deferred tax of DKK (2.9) million.
Please refer to note 6" Pension obligations" for further comments on the adjustment of the UK pension obligation.
TaxationTax for the second quarter was DKK (5.2) million, against DKK (7.7) million in 2016, a change of DKK 2.5 million. The lower tax expenses are due to the decline in the GBP exchange rate.
Discontinued operations and assets held for sale Discontinued operations generated a loss of DKK (0.5) million in the second quarter, against a loss of DKK (0.7) million in 2016.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 4/17
H+H International A/S published this content on 17 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 August 2017 07:26:02 UTC.
Original documenthttp://www.hplush.com/documents/10180/13907742/350%20Interim%20financial%20report%20H1%202017.pdf
Public permalinkhttp://www.publicnow.com/view/F0AEE346A202F121736F22ECBACCCC5EAF6CCB62
