Company announcement No. 529, 2023

H+H International A/S Annual Report 2022: Strong performance in a challenging market environment

 

H+H International A/S (hereinafter referred to as “H+H” or “the Company”) hereby announces financial results for the full year ended 31 December 2022. The financial results for 2022 are within the range of the most recent financial guidance for 2022 (see company announcement No. 517 of 10 November 2022):
 

• Revenue growth measured in local currencies (“organic growth”) came in at 14% in line with recent guidance. Organic growth was mainly driven by sales price increases to counter the continued high inflation. It was offset by lower sales volumes as a result of planned upgrade of the Wittenborn factory in Germany as well as a softening of sales volumes in Poland which started in H2.
• EBIT before special items reached all-time high DKK 455 million.
• Q4, 2022 was impacted by lower volumes and higher production costs across our markets. EBIT before special items was DKK 58 million compared to DKK 94 million last year, corresponding to an EBIT margin before special items of 7% compared to 13% in 2021.

 

 

“I am pleased to see a very strong full-year result for 2022 where H+H reached its highest ever EBIT before special items of DKK 455 million. Following a strong start of 2022, we saw a change in market dynamics in the second half of the year. High inflation and increased market uncertainty led to lower demand for residential newbuild. We expect this to impact our volume growth by 10-15% and our earnings in 2023. We are well prepared to navigate in such environment”, says CEO, Jörg Brinkmann.

 

SELECTED FINANCIAL HIGHLIGHTS FOR 2022

DKK million	2022	2021	Q4 2022	Q4 2021
Revenue	3,604	3,020	810	731
Organic growth	14%	13%	9%	11%
Gross margin before special items	28%	30%	25%	30%
EBITDA before special items	657	591	111	139
EBIT before special items	455	408	58	94
EBITDA margin before special items	18%	20%	14%	19%
EBIT margin before special items	13%	14%	7%	13%
Return on invested capital, excluding goodwill	19%	20%	19%	20%
NIBD/EBITDA ratio before special items	0.7x	0.6x	0.7x	0.6x

 

FINANCIAL OUTLOOK FOR 2023

• Revenue growth measured in local currencies is expected to be around 0%
• EBIT before special items is expected to be in the range of DKK 330-400 million

 

ANNUAL REPORT CONFERENCE CALL

 

In connection with the release of the 2022 Annual Report, a conference call for investors and analysts is scheduled for Thursday 2 March 2023, at 10:00 a.m. CET. On the call, CEO Jörg Brinkmann and CFO Peter Klovgaard-Jørgensen will present the Annual Report. The presentation will be followed by a Q&A session. Investors and analysts are invited to participate via phone (PIN code: 275042):

 

DK: +45 78 76 84 90

UK: +44 203 769 6819

US: +1 646 787 0157

 

 

• Other participants can follow the conference call via live webcast here.
• The presentation slides for the conference call will be made available beforehand here.
• A replay of the conference call will be available afterwards on H+H’s Investor Relations website here.

 

In addition to the Annual Report for 2022, the following documents have today been released and made available on the Group’s website:

 

• Sustainability Report for 2022
• Annual Remuneration Report for 2022
• Corporate Governance Statement for 2022

 

Kent Arentoft	Jörg Brinkmann	Peter Klovgaard-Jørgensen
Chair	Chief Executive Officer	Chief Financial Officer

 

 

For further information please contact

Niclas Bo Kristensen

Head of Investor Relations and Treasury

+45 24 48 03 67

[email protected]

 

Disclaimer
This document contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of H+H International A/S, may cause actual developments and results to differ materially from the expectations expressed in this document. In no event shall H+H International A/S be liable for any direct, indirect or consequential damages or any other damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other action, arising out of or in connection with the use of information in this document.

 

H+H International A/S’s core activity is the manufacture and sale of wall building materials, with a revenue in 2022 of DKK 3,604 million. The main product lines are aircrete blocks and calcium silicate units used for the residential new building segment. H+H has 32 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 1,700 employees and is listed on Nasdaq Copenhagen.