“I’m pleased with a very good first quarter for H+H despite operating in uncertain times”, says CEO Michael T. Andersen. “Market demand was strong throughout the quarter, where only the UK construction market was affected by a governmental lockdown in the last week of March. Our activities in Continental Europe are currently well performing according to original plan. A gradual reopening of construction sites in the UK has been initiated early May, but visibility remains very low”.
Financial highlights for the period 1 January to 31 March 2020
| DKK million | Q1 2020 | Q1 2019 |
| Revenue | 704 | 666 |
| Organic growth | 2% | 22% |
| EBITDA before special items | 130 | 97 |
| EBIT before special items | 85 | 55 |
| EBIT margin before special items | 12% | 8% |
| NIBD/EBITDA ratio before special items ratio | 0.9 | 1.4 |
| Special items | 0 | 0 |
| Free cash flow | (78) | (47) |
Other highlights
- On 14 January 2020, H+H International A/S’ subsidiary H+H Deutschland GmbH has closed the acquisition of 51% of the shares in Porenbetonwerk Laussnitz GmbH & Co. KG (PBWL).
- On 24 March 2020, H+H International A/S suspended its outlook following measures taken by the UK Government on 23 March 2020 that caused closure of distribution centres and buildings sites in the UK and lack of visibility due to the outbreak of Covid-19.
Events after the balance sheet date
- Since beginning of May, house builders and builder’s merchants in the UK have been planning and initiated a phased reopening of building sites and distribution centers. The pace and degree of reopening is still uncertain, and thus gives low visibility on when normal operation will be reached.
Outlook for 2020
As clarity is still limited on the recovery of the UK market and impact on other markets and demand from Covid-19, H+H will maintain the suspension of the financial outlook for 2020.
The Group will provide the market with updated financial outlook as soon as an assessment of the full-year results with reasonable confidence is possible.
Investor and analyst teleconference
H+H International A/S will host an investor and analyst teleconference on 15 May 2020 at 11:00 CEST.
To attend the conference call, please see details below.
DK: +4578150110
UK: +443333009264
US: 18335268381
https://hplush.eventcdn.net/2020q1/
For further information please contact:
CFO Peter Klovgaard-Jørgensen or IR Manager Cristina Rønde Hefting, on telephone +45 35 27 02 00.
H+H’s core activity is the manufacture and sale of wall building materials, with a revenue in 2019 of DKK 2.8 billion. The main product lines are aircrete blocks and calcium silicate units used for the residential new building segment. H+H has 29 factories in Northern and Central Europe with a total output of more than 4 million cubic metres of products annually and has a leading position in most of its markets. H+H has more than 1,600 employees and is listed on Nasdaq Copenhagen.
Attachment
