In H1 2012, Hartmann's revenue and operating profit rose despite challenging market conditions in the European markets. A lower operating profit in Hartmann's European business was offset by continued strong growth in the North American market. Hartmann retains its full-year forecast for 2012 of revenue on a level with 2011 (DKK 1.5 billion) and a profit margin of 7.5-9%.
CEO Michael Rohde Pedersen on Hartmann's performance in H1 2012:
With growth in revenue, operating profit and cash flows, business developments were satisfactory during the first half of the year despite challenging market conditions in Europe. The North American business continued to grow, delivering a strong operating profit driven by efficiency optimisation and targeted efforts to optimise the product portfolio. Our work to strengthen Hartmann's competitive strength and create a strong platform for growth during 2013-2015 is progressing to plan, and we look forward to the next steps of our strategy.
Michael Rohde Pedersen on Hartmann's outlook:
We retain our full-year forecast for 2012 of revenue of around DKK 1.5 billion and a profit margin of 7.5-9%. We expect the second half of 2012 to be marked by continued challenging market conditions in Europe, while our performance in North America is expected to continue on a positive note.
Highlights
- Hartmann reported revenue of DKK 769 million for H1 2012 (2011: DKK 727 million) and operating profit* of DKK 62 million (2011: DKK 57 million), corresponding to a profit margin* of 8.1% (2011: 7.8%). Revenue for Q2 2012 was DKK 358 million (2011: DKK 352 million), and operating profit was DKK 17 million (2011: DKK 21 million), corresponding to a profit margin of 4.7% (2011: 6.1%).
- Cash flows from operating and investing activities continued to show a positive trend and amounted to a net cash inflow of DKK 52 million for H1 2012 (2011: a net cash inflow of DKK 48 million) and a net cash inflow of DKK 10 million for Q2 2012 (2011: a net cash inflow of DKK 10 million).
- Return on invested capital grew, standing at 18.2% at 30 June 2012 (2011: 13.3%).
- In Europe, Hartmann's revenue for H1 2012 was DKK 639 million (2011: DKK 622 million), and operating profit was DKK 45 million (2011: DKK 65 million). Revenue for Q2 2012 was DKK 295 million (2011: DKK 300 million), and operating profit was DKK 9 million (2011: DKK 26 million).
- Hartmann's North American business reported revenue of DKK 130 million for H1 2012 (2011: DKK 104 million) and operating profit of DKK 31 million (2011: DKK 8 million). Revenue for Q2 2012 was DKK 63 million (2011: DKK 52 million), and operating profit was DKK 15 million (2011: DKK 4 million).
- Based on its H1 performance and the expected market trends, Hartmann maintains its full-year forecast for 2012 of revenue on a level with 2011 (DKK 1.5 billion) and a profit margin of 7.5-9%. The challenging market conditions in some of the European markets are expected to continue to impact Hartmann's performance for the second half of the year, while the positive trends in North America are expected to continue.
* References to operating profit in this report refer to operating profit before special items, and references to profit margin refer to profit margin before special items.
For additional information, please contact:
Michael Rohde Pedersen
CEO
Tel. (+45) 45 97 00 33
