15.11.2022 15:16:21 CET | Brødrene Hartmann A/S | Interim report (Q1 and Q3)

Hartmann lifted revenue and secured positive earnings in Q3 2022 despite all-time high energy prices, continued paper price increases, general inflationary pressure, and challenging macroeconomic conditions. Hartmann specifies revenue and profitability expectations to the upper end of the previously announced guidance. Hartmann maintained market share in Q3 2022.

Revenue increased significantly mainly due to higher average selling prices across Hartmann's markets to offset rising energy prices and cost inflation. Growth was realised across markets based on stable sales volumes in Eurasia and volume growth in Americas.

Earnings and profitability grew as cost inflation and increasing energy and recycled paper prices were countered through increased selling prices in Q3 2022. Earnings and profitability improved in Americas, while Eurasia saw a decline due to a more severe impact by energy prices and cost inflation.

Hartmann maintained a reduced investment level in Q3 2022 following higher investments in previous years.

Q3 2022

  • Group revenue increased to DKK 861 million (2021: DKK 609 million).
  • Operating profit* was DKK 25 million (2021: DKK 12 million) corresponding to a profit margin of 2.9% (2021: 2.2%).
  • Investments declined to DKK 51 million (2021: DKK 122 million).

CEO Torben Rosenkrantz-Theil says: ”In the face of historically challenging conditions in Q3 2022, we successfully mitigated rising costs and delivered improved profitability through continued pricing actions across markets. Based on our solid performance year-to-date, we now specify our 2022 revenue outlook to around DKK 3.3 billion and the profit margin to be 5-7%."

2022 outlook

Based on the development in the first nine months of the year with the effect of continuous mitigating pricing actions, and despite soft markets in both Europe and Americas, Hartmann now expects to grow reported revenue to around DKK 3.3 billion (previously DKK 2.9-3.3 billion) and generate a profit margin* of 5-7% (previously 2-7%). While earnings and profit margin are expected to be negatively impacted by continued high prices of recycled paper and energy as well as rising inflation, Hartmann will continue to alleviate these effects through efforts to adjust selling prices, improve the product mix, and increase efficiency. Price adjustments will, however, continue to be implemented at a certain time lag.

The historically high volatility of energy and recycled paper prices continues to cause significantly reduced visibility and increased uncertainty about developments in the group’s cost levels. Investments** are still expected at around DKK 225 million in 2022. In addition to these ordinary investments, Hartmann will re-establish operations at the group’s Indian factory following the fire in Q2 2022 entailing investments expected to be compensated by insurance coverage.

* Operating profit and profit margin are stated before restatement for special items and hyperinflation.
** Excluding investments covered by insurance.

Contacts

  • Torben Rosenkrantz-Theil, CEO, (+45) 45 97 00 57

About Brødrene Hartmann A/S

Hartmann is the world’s leading manufacturer of moulded-fibre egg packaging and a market-leading manufacturer of fruit packaging in South America and India. The group is also the world’s largest manufacturer of technology for the production of moulded-fibre packaging. Founded in 1917, Hartmann’s market position builds on its strong technology know-how and extensive experience of sustainable moulded-fibre production dating back to 1936. Hartmann sells egg and fruit packaging to manufacturers, distributors and retail chains, which are increasingly demanding sustainable packaging solutions and specialised marketing expertise. Our versatile product portfolio is customised to accommodate customer and consumer needs in each individual market. Hartmann sells machinery and technology to manufacturers of moulded-fibre packaging in selected markets. Headquartered in Gentofte, Denmark, with a production platform consisting of 15 factories in Europe and Israel, North and South America, and India and Russia (discontinuing).

Attachments

  • Hartmann interim report Q3 2022.pdf

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