2018 in brief
Hartmann grew volumes and expanded production capacity in 2018, and we improved our operational performance by stepping up sales efforts and implementing efficiency-improving measures. In the face of higher energy costs and significant currency headwinds, Hartmann delivered a profit margin of 10.2%.
- Revenue was DKK 2,207 million (2017: DKK 2,207 million)
- The profit margin* came to 10.2% (2017: 10.7%)
- ROIC* was 17.2% (2017: 17.1%)
- Capital expenditure* was DKK 129 million (2017: DKK 208 million)
- Currency movements reduced revenue by DKK 244 million and operating profit by DKK 40 million in 2018.
Volume growth
We grew packaging sales to existing and new customers across the group's markets based on intensified sales efforts in 2018. We won market share and increased the proportion of premium products.
Capacity expansion
Hartmann expanded its capacity in Europe and South America in 2018 to capitalise on buoyant market demand and create a solid platform for continued volume growth in the years ahead. We will continue these efforts in 2019.
Perform 2018
Launched in Q1 2018, 'Perform 2018' helped grow sales and improve efficiency in 2018. The programme included a relocation of activities and organisational adjustments that will take full effect in 2019.
Capacity utilisation
Supported by our efficiency-improving measures over the past few years, the European business reported volume growth in 2018, and we lifted capacity utilisation in the Americas by moving production closer to our South American customers and stepping up sales efforts in North America.
Guidance for 2019
We anticipate continued volume growth in our core business in 2019 on the back of intensified sales efforts in all the group's markets. Against this background, total revenue after restatement for hyperinflation is expected to amount to DKK 2.2-2.4 billion, although machinery and technology sales are expected to return to normal levels after Hartmann Technology has contributed significantly to consolidated revenue over the past few years.
The profit margin is expected to be 9-11% before restatement for hyperinflation. Earnings are expected to benefit from the initiatives implemented under the 'Perform 2018' programme, which will take full effect in 2019, and to be further supported by improved capacity utilisation and enhanced production efficiency. The lower contribution from Hartmann Technology will impact negatively on earnings in combination with higher paper and energy costs as well as adverse currency effects.
Capital expenditure is expected at a level of DKK 200 million.
For further information, please contact:
Torben Rosenkrantz-Theil
CEO
(+45) 45 97 00 57
* Operating profit and profit margin are stated before special items, and profit margin, return on invested capital and capital expenditure are commented before restatement for hyperinflation.
