Hartmann's revenue and operating profit continued to grow in Q3 2015, driven by a positive trend in the Americas, while the European business was affected by increasing price competition on several central European markets. The efficiency improvement measures launched in Europe are progressing according to plan, and production capacity in South America is being expanded as planned with the construction of two factories. We maintain our full-year guidance for 2015.
CEO Ulrik Kolding Hartvig: 'Our sale of packaging increased in Q3, and both our revenue and earnings grew despite the increasingly competitive European markets. The efficiency improvement measures taken in the European business are on track, and we are stepping up efforts to stabilise selling prices on the markets where price competition is showing a trend that will be unsustainable in the long term. Capacity utilisation is high on the American markets, and this has prompted us to boost the expansion of our South American production capacity by building two new factories, which are scheduled for completion in 2016.'
Q3 2015
- Hartmann's total revenue grew to DKK 508 million (2014: DKK 373 million) with operating profit* at DKK 52 million (2014: DKK 26 million), corresponding to a profit margin* of 10.2% (2014: 7.0%). Foreign exchange gains lifted revenue by DKK 18 million and operating profit by DKK 12 million.
- Revenue from our European business was DKK 292 million (2014: DKK 297 million), and operating profit increased to DKK 25 million (2014: DKK 21 million), corresponding to a profit margin of 8.5% (2014: 7.2%). The sale of moulded-fibre packaging grew in Q3, and the decrease in total revenue was attributable to lower contributions from Hartmann's other activities.
- Revenue from the Americas grew to DKK 216 million for Q3 (2014: DKK 77 million), and operating profit grew to DKK 33 million (2014: DKK 10 million), corresponding to a profit margin of 15.2% (2014: 13.3%). The positive trend was attributable to the addition of the South American activities in early 2015 and the utilisation of the expanded production capacity in North America, combined with foreign exchange gains.
- Special costs amounted to DKK 84 million (2014: DKK 0 million) resulting from write-downs and other costs in connection with the proposed closure of our factory in Germany in H1 2016 and organisational adjustments in Europe. See note 4 to the financial statements. Consultations with the German employee representatives are currently ongoing, and the expansion of production capacity at other factories in Europe is progressing according to plan.
9M 2015
- Total revenue for 9M 2015 grew to DKK 1,570 million (2014: DKK 1,137 million) with operating profit* at DKK 156 million (2014: DKK 88 mil-lion), corresponding to a profit margin* of 9.9% (2014: 7.7%). Foreign exchange gains lifted revenue by DKK 60 million and operating profit by DKK 37 million. Special costs amounted to DKK 97 million (2014: DKK 0 million).
- Our European business generated revenue of DKK 900 million for 9M 2015, (2014: DKK 919 million) and operating profit of DKK 69 million (2014: DKK 71 million), corresponding to a profit margin of 7.7% (2014: 7.7%).
- In the Americas, revenue grew to DKK 670 million (2014: DKK 218 million) and operating profit to DKK 105 million (2014: DKK 34 million), corresponding to a profit margin of 15.7% (2014: 15.8%).
- Cash flows from operating activities rose to a net inflow of DKK 156 million (2014: an inflow of DKK 92 million), and return on invested capital was 23% (2014: 19%).
Outlook for 2015
- We maintain our full-year guidance of revenue in the range of DKK 2.0-2.1 billion and a profit margin before special items of 10-11.5%.
For further information, please contact:
Ulrik Kolding Hartvig
CEO
Phone: (+45) 45 97 00 57
* Operating profit refers to operating profit before special items and profit margin to profit margin before special items.
