Hartmann successfully maintained momentum in Q1 2018, growing both packaging and technology sales. The ongoing expansion of European production capacity continued in Q1 2018, while sales and utilisation of Hartmann's total capacity in North America progressed at a slower pace.
Hartmann introduced Perform 2018 in Q1 2018, a programme setting out to reduce costs and sustain growth in sales volumes. The programme is intended to outweigh the repercussions of the discovery of fipronil-contaminated eggs in Europe in 2017, subdued packaging sales during Easter and the slower sales and utilisation of capacity in North America.
CEO Torben Rosenkrantz-Theil: "We grew packaging sales and lifted core business earnings in the first quarter. We managed to do so although growth, as expected, was subdued. Our Q1 performance was also impacted by the slower sales and utilisation of our expanded capacity in North America. Our operating performance improved, and our new improvement programme will help us strengthen efficiency even further and assist us in reaching our targets for the year."
Q1 2018
- Consolidated revenue grew to DKK 624 million (2017: DKK 572 million), and operating profit* rose to DKK 92 million (2017: DKK 61 million), taking the profit margin to 14.7% (2017: 10.7%). The progress was driven by higher sales in the core business and growing technology sales.
- The European business grew revenue to DKK 385 million (2017: DKK 321 million) and operating profit to DKK 61 million (2017: DKK 41 million), bringing the profit margin to 16.0% (2017: 12.7%). Both revenue and earnings were supported by higher sales in Hartmann Technology combined with increased packaging volume sales.
- Although the business in the Americas sold more packaging, revenue in that market dropped to DKK 239 million (2017: DKK 251 million) due to adverse currency movements. Higher volumes and lower costs combined to lift operating profit to DKK 35 million (2017: DKK 31 million), for a profit margin of 14.6% (2017: 12.2%).
- Return on invested capital (ROIC) rose to 19% (2017: 18%).
- Currency fluctuations reduced consolidated revenue by DKK 55 million and operating profit by DKK 13 million in the first quarter of the year. Special items amounted to a net expense of DKK 6 million (2017: DKK 0 million).
Guidance for 2018
- We reiterate our guidance of revenue of DKK 2.2-2.3 billion, a profit margin of 11.5-13% and a return on invested capital of at least 18%.
- Our total capital expenditure is expected to amount to about DKK 150 million.
For further information, please contact:
Torben Rosenkrantz-Theil
CEO
Phone: (+45) 45 97 00 57
* Operating profit and profit margin are stated before special items.
