Following a period of challenging markets, Hartmann lifted total packaging volumes and grew its core business in the first quarter of 2017. As expected, operating profit declined as the ongoing establishment of and ramp-up at new factories in the Americas drove up production costs and depreciation charges. The European packaging business reported a solid performance, and the North American market showed signs of recovery towards the end of the quarter, while the business in South America struggled due to macroeconomic developments. Hartmann Technology reported lower revenue and earnings than in Q1 2016. The capacity expansion programmes in Europe and the Americas are proceeding according to plan, and full-year 2017 guidance is maintained.
CEO Ulrik Kolding Hartvig: "Our core business made progress, and we lifted packaging volumes in the first quarter of 2017. Technology sales were lower than in the same period of last year, and, as we had expected, operating profit declined as capacity at our new factories was still not utilised. The outlook remains positive and we maintain our guidance for 2017."
Q1 2017
- Total revenue grew to DKK 572 million (2016: DKK 554 million), and operating profit came to DKK 61 million (2016: DKK 80 million), corresponding to a profit margin of 10.7% (2016: 14.5%).
- The European business reported revenue of DKK 321 million (2016: DKK 333 million) and operating profit of DKK 41 million (2016: DKK 44 million), taking the profit margin to 12.7% (2016: 13.2%). The core business benefited from increasing packaging volumes, successful efficiency-improving measures and lower energy costs. Hartmann Technology's sales and earnings were down on Q1 2016.
- Revenue from the Americas grew to DKK 251 million (2016: DKK 221 million), driven by foreign exchange movements, while operating profit dropped to DKK 31 million (2016: DKK 43 million), bringing the profit margin to 12.2% (2016: 19.5%). Profitability was impacted by the ongoing establishment of and ramp-up at new factories.
- The return on invested capital was 18% (2016: 24%).
Guidance for 2017
- We maintain our full-year guidance of revenue of DKK 2.2-2.3 billion and a profit margin of 11-12.5%.
- Our total capital expenditure is still expected to be some DKK 250 million, and we also reiterate our guidance of a return on invested capital of about 18%.
For further information, please contact:
Ulrik Kolding Hartvig
CEO
Phone: (+45) 45 97 00 57
