the high inflation environment continued to drive price increases, while market demand began to weaken

H+H International A/S

H+H International AG Q3 Half-year financial report 2022

Today, the Board of Directors of H+H International A/S (hereinafter referred to as “H+H” or “the Company”) adopted the interim financial report for the third quarter (“Q3 2022”) and the first nine months of 2022 (“Q3 2022”).

QUOTE FROM CHIEF EXECUTIVE JÖRG BRINKMANN

I am very happy to join H+H and to be part of the very committed organization. I am delighted to see the benefits of the agile business model and to see how H+H is able to offset the continued inflationary pressure with sales price increases and by taking advantage of its network of factories established over the past few years. Our focus will remain on serving customers across our entire footprint and delivering strong operational performance without losing sight of our long-term commitments. The current business environment is challenging, but at the same time, it also represents an excellent opportunity to position H+H for a successful future and realize the full potential of the business.

PERFORMANCE HIGHLIGHTS FOR Q3 2022 (Q3 2021)

  • Revenue increased by 13% to 920 million DKK (811 million DKK).

  • Revenue growth before acquisitions and divestitures measured in local currencies (“organic growth”) was 7% (13%).

  • Gross profit was DKK 254 million (DKK 250 million), corresponding to a gross margin of 28% (31%).

  • EBIT before exceptionals amounted to DKK 110 million (DKK 125 million), corresponding to an EBIT margin before exceptionals of 12% (15%).

  • Net profit of 82 million DKK (88 million DKK).

  • Free cash flow was DKK 36 million (DKK 5 million).

  • Leverage was 0.5x EBITDA at the end of Q3 2022 (0.3x EBITDA at the end of Q3 2021).

FINANCIAL OUTLOOK FOR 2022

The financial outlook for the full year 2022 is tightened:

  • Revenue growth before acquisitions and divestitures measured in local currencies (“organic growth”) is expected to be around 15% (previously 15% to 20%).

  • EBIT before exceptional items is expected to be between DKK 440 and 470 million (previously DKK 440 and 520 million).

Expectations regarding the financial performance of H+H in 2022 are based on certain specific and general assumptions. Please refer to the third quarter 2022 interim financial report for more information on the specific and general assumptions.

FINANCIAL INFORMATION FOR THE PERIOD FROM JANUARY 1, 2022 TO SEPTEMBER 30, 2022

million danish kroner

Q3 2022

Q3 2021

Q1-Q3 2022

Q1-Q3 2021

Sales volume (thousands of cubic meters)

1,019

1,176

3,288

3,328

Revenue

920

811

2,794

2,289

Organic growth

seven%

13%

16%

14%

Gross margin before special items

28%

31%

29%

30%

EBITDA before special items

160

171

546

452

EBIT before special items

110

125

397

314

EBIT margin before special items

12%

15%

14%

14%

Special items

(9)

(4)

(28)

(4)

Return on Invested Capital (ROIC)

24%

21%

24%

21%

Free movement of capital

36

5

138

145

NIBD/EBITDA ratio before exceptional items

0.5x

0.3x

0.5x

0.3x

Q1-Q3 2022 HALF-YEAR FINANCIAL REPORT TELECONFERENCE

As part of the publication of the Q1-Q3 2022 interim financial report, a conference call for investors and analysts is scheduled for Thursday, November 10, 2022, at 10:00 a.m. CEST. During the call, Chief Executive Officer (“CEO”) Jörg Brinkmann and Chief Financial Officer (“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 78 15 01 07
UK: +44 333 300 9263
USA: +1 646 722 4904

  • 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:

Nicholas Bo Kristensen
Head of Investor Relations and Treasury
+45 24 48 03 67
[email protected]

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