H+H INTERNATIONAL A/S Company announcement No. 546, 2023
CHIEF EXECUTIVE OFFICER JORG BRINKMANN QUOTE
"Our quarterly result is in line with our expectations. Our focus on the business improvement program continues and I am pleased to see first effects coming through, however, we are also impacted by higher energy costs. In light of expected low building activity in the mid-term we have decided to pause production in four factories across our footprint. This will allow us to increase efficiency of the remaining plants, while maintaining a flexible approach to restarting production when market conditions improve. It will also contribute to reduce our stock levels in line with our cash management priorities." says CEO Jörg Brinkmann.
PERFORMANCE HIGHLIGHTS FOR Q3 2023 (Q3 2022)
- Sales volume decreased by 27% to 740 thousand cubic metres (1,018 thousand cubic metres)
- Revenue growth measured in local currencies ("organic growth") was negative 24% (positive 7%)
-
Gross profit before special items was
DKK 138 million (DKK 254 million ), corresponding to a gross margin of 20% (23%). -
EBITDA before special items was
DKK 53 million (DKK 160 million ), corresponding to an EBITDA margin before special items of 8% (17%). -
EBIT before special items was
DKK 13 million (DKK 110 million ), corresponding to an EBIT margin before special items of 2% (12%) -
Free cash flow was
DKK 54 million (DKK 36 million ) - Financial gearing was 2.6 times EBITDA at the end of Q3 2023 (0.5 times EBITDA at the end of Q3 2022)
FINANCIAL HIGHLIGHTS FOR THE PERIOD
| DKK million | Q3 2023 | Q3 2022 | Q1-Q3 2023 | Q1-Q3 2022 |
| Sales volume (thousand cubic metres) | 740 | 1,018 | 2,097 | 3,288 |
| Revenue | 699 | 920 | 2,071 | 2,794 |
| Organic growth | (24)% | 7% | (25)% | 16% |
| Gross margin before special items | 20% | 28% | 23% | 29% |
| EBITDA before special items | 53 | 160 | 212 | 546 |
| EBIT before special items | 13 | 110 | 72 | 397 |
| EBIT margin before special items | 2% | 12% | 3% | 14% |
| Special items | (32) | (9) | (206) | (28) |
|
Return on | (4)% | 21% | (4)% | 21% |
| NIBD/EBITDA before special items ratio | 2.6x | 0.5x | 2.6x | 0.5x |
| Free cash flow | 54 | 36 | (323) | 138 |
FINANCIAL OUTLOOK FOR 2023
- Revenue growth measured in local currencies is expected to be negative around -25% (previously -20% to -25%)
-
EBIT before special items is expected to be in the range of
DKK 30 million toDKK 80 million (previouslyDKK 30 to 100 million)
The financial outlook for 2023 is based on the following specific assumptions:
- Sales volumes expected to decrease around -35%
-
Exchange rates, primarily GBP, EUR and PLN remain at
mid-November 2023 levels.
Q3 2023 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the Q3 2023 Interim Financial Report, a conference call for investors and analysts is scheduled for Friday
DK: +45 78 76 84 90
US: +1 646 787 0157
- Other participants can follow the conference call via live webcast here.
- The presentation slides for the conference call will be made available beforehand here.
- After the conference call, you can access the replay and transcript on H+H's Investor Relations website here.
For further information please contact:
Head of Investor Relations &
+45 24 48 03 67
Nbk@hplush.com
https://news.cision.com/h-h-international-a-s/r/interim-financial-report-q3-2023--h-h-narrows-financial-outlook-for-full-year-2023-and-taking-furthe,c3877668
https://mb.cision.com/Main/21438/3877668/2437382.pdf
https://mb.cision.com/Public/21438/3877668/808721409277cf23.xlsx
https://mb.cision.com/Public/21438/3877668/a72f4b1d13bafcf8.pdf
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