In H1 2013, those of Hartmann's European markets that were affected by price
adjustments in 2012 continued to stabilise, and the North American business
generated both revenue growth and operating profit growth. Hartmann initiated
processes to enhance production efficiency in Europe and to expand its existing
production capacity in North America. Cash flows remained strong in the first
six months of the year. Hartmann retains its full-year guidance for revenue of
DKK 1.5-1.6 billion and a profit margin of 7.5-9.5%.
CFO and interim CEO Marianne Rørslev Bock on Hartmann's performance in H1 2013:
"We are still pursuing our strategy of improving Hartmann's competitive edge and
preparing the business for further growth. During the first half year, we have
worked diligently to increase profitability in Europe, where stabilisation has
continued following a volatile 2012. With a strengthening of the European
business and the expansion of our capacity in North America, Hartmann will have
a solid foundation for further growth."
Marianne Rørslev Bock on Hartmann's outlook:
"Based on developments in the first half year and the stabilisation in Europe,
we retain our guidance of revenue of DKK 1.5-1.6 billion and a profit margin of
7.5-9.5% in 2013."
Highlights
* For H1 2013, revenue was DKK 793 million (2012: DKK 769 million) and
operating profit* DKK 65 million (2012: DKK 62 million), equal to a profit
margin* of 8.2% (2012: 8.1%). For Q2 2013, revenue was DKK 370 million
(2012: DKK 358 million), and operating profit was DKK 21 million (2012: DKK
17 million), equal to a profit margin of 5.7% (2012: 4.7%).
* Cash flows from operating and investing activities grew to a net cash inflow
of DKK 66 million for H1 2013 (2012: a net cash inflow of DKK 52 million)
and a net cash inflow of DKK 30 million for Q2 2013 (2012: a net cash inflow
of DKK 10 million). Return on invested capital fell to 12.1% (2012: 18.2%)
due to special items.
* Hartmann's European markets continued to stabilise relative to H2 2012.
Revenue for H1 2013 was DKK 647 million (2012: DKK 639 million), and
operating profit was DKK 44 million (2012: DKK 45 million), equal to a
profit margin of 6.9% (2012: 7.0%). For Q2 2013, revenue was DKK 296 million
(2012: DKK 295 million), and operating profit was DKK 10 million (2012: DKK
9 million), equal to a profit margin of 3.5% (2012: 2.9%).Despite the
positive trends, performance remained unsatisfactory.
* In North America, revenue grew to DKK 146 million in H1 2013 (2012: DKK 130
million), and operating profit was DKK 33 million (2012: DKK 31 million),
equal to a profit margin of 22.9% (2012: 23.5%). For Q2 2013, revenue was
DKK 74 million (2012: DKK 63 million), and operating profit grew to DKK 18
million (2012: DKK 15 million), equal to a profit margin of 24.0% (2012:
23.5%).
* The expansion of Hartmann's existing production capacity in North America
was initiated in the second quarter of the year and is progressing to plan.
The investment is expected to be fully implemented in 2014.
* Special items amounted to DKK 39 million in H1 2013 (2012: DKK 0 million) as
a result of the closure of Hartmann's manufacturing facility in Finland and
a severance payment to former CEO Michael Rohde Pedersen. The closure of the
Finnish manufacturing facility is progressing to plan and is expected to
contribute DKK 10 million to operating profit annually. The effect is
expected to be fully reflected from 2014, while the effect will be limited
in 2013. The Board of Directors has initiated the process of recruiting a
new CEO, and CFO Marianne Rørslev Bock will temporarily be in charge of the
day-to-day management.
* Hartmann retains its full-year guidance of revenue of DKK 1.5-1.6 billion
and a profit margin of 7.5-9.5%.
* References to operating profit refer to operating profit before special items,
and references to profit margin refer to profit margin before special items.
For additional information, please contact:
Marianne Rørslev Bock
CFO and interim CEO
Tel.: (+45) 45 97 00 57
[HUG#1724165]
