Operating profit and the profit margin improved and business performance was stable in Q1 2016. Our measures to improve efficiency in the European business began to pay off, offsetting price competition and lower revenue. Our activities in the Americas also contributed to enhancing profitability as, overall, they were not overly affected by economic developments in South America. The ongoing measures to strengthen efficiency in Europe and expand in the Americas are proceeding according to plan, and full-year 2016 guidance is maintained.
CEO Ulrik Kolding Hartvig: "Overall, the business and packaging sales were stable in the first quarter despite price competition and lower revenue in Europe. We managed to grow operating profit and raise the profit margin against the background of efficiency gains in Europe and a continued strong operating performance in the Americas. As the measures to improve our competitive position in Europe and expand production capacity in the Americas are also on track, we maintain our full-year guidance for 2016."
Q1 2016
- Revenue totalled DKK 554 million (2015: DKK 581 million), and operating profit* came to DKK 80 million (2015: DKK 62 million), corresponding to a profit margin* of 14.5% (2015: 10.6%). Foreign exchange developments reduced revenue by DKK 51 million and operating profit by DKK 5 million.
- Our European business reported revenue of DKK 333 million (2015: DKK 342 million) and an improvement in operating profit to DKK 44 million (2015: DKK 33 million), corresponding to a profit margin of 13.2% (2015: 9.6%). Efficiency gains and lower fixed costs offset the impact of the lower revenue in Q1 2016.
- Revenue from the Americas was DKK 221 million in Q1 2016 (2015: DKK 239 million), while operating profit came to DKK 43 million (2015: DKK 36 million), corresponding to a profit margin of 19.5% (2015: 14.9%). Business performance was stable and average North American selling prices rose. Overall, our South American business was not significantly impacted by macroeconomic trends such as inflation and weakening local currencies.
- Cash flows from operating activities grew to a net inflow of DKK 94 million (2015: DKK 28 million), and the return on invested capital was 24% (2015: 22%).
Outlook for 2016
- We maintain our full-year guidance of revenue in the DKK 2.1-2.2 billion range and a profit margin of 11-12.5%.
- Our total capital expenditure for 2016 is expected to amount to around DKK 350 million.
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, unless otherwise stated.
