H+H International A/S - Interim financial report H1 2017Company Announcement No. 350, 2017Copenhagen, Denmark, 2017-08-17 08:00 CEST --
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
LEI 213800GJODT6FV8QM841
Highlights for the period 1 January to 30 June 2017
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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).
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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.
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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.
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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.
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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.
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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).
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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.
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Net interest-bearing debt at 30 June 2017 was DKK 476.8 million (30 June 2016: DKK 432.4 million).
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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.
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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 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.
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"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."
Please see attached PDF for full version of the report.
Kent Arentoft
Chairman of the Board of Directors
Michael T Andersen
CEO
For additional information please contact:
Michael T Andersen, CEO, or Bjarne Pedersen, Vice President, Business Development & IR,
tel.: +45 35 27 02 00.
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