Skip to main content

Hartmann delivered strong performance in Q3 2019

Written by Customer Service on . Posted in Public Companies.

Hartmann reported strong revenue and earnings growth in Q3 2019 on the back of a solid core business performance and higher machinery and technology sales. Hartmann now expects revenue to reach the upper end of the DKK 2.2-2.4 billion range with a profit margin around 11%, and continued investments in new capacity lay the groundwork for additional volume growth in the years ahead.Group revenue increased to DKK 591 million (2018: DKK 453 million)Revenue from packaging sales grew to DKK 547 million (2018: DKK 446 million)Operating profit* increased to DKK 81 million (2018: DKK 26 million) corresponding to a profit margin* of 13.3% (2018: 5.4%)Capital expenditure* increased to DKK 58 million (2018: DKK 32 million)Currency movements reduced revenue by DKK 30 millionCEO Torben Rosenkrantz-Theil says: “Sales of sustainable moulded-fibre packaging were strong in Q3 2019, and our technology and machinery business also contributed to the positive development. Based on this momentum, we are on track to deliver higher revenue and earnings this year, and we will continue to invest in production capacity to be able to meet current and future demand.”Sustaining volume growth
Hartmann continued to grow packaging sales in all markets in Q3. Sales were particularly strong in Europe and North America.
Lifting machinery sales
As expected, Hartmann Technology was a driving force behind the strong Q3 performance. Overall, sales of machinery and technology are still expected to normalise in 2019 at a level down from the 2018 high.
Improving profitability
The solid core business performance combined with higher machinery sales drove a strong improvement in profitability in the third quarter. The Q3 performance was further supported by substantial licence income.
Investing in new capacity
Hartmann expanded its European production capacity in the third quarter and prepared additional capacity for commissioning in Q4. The work to expand capacity in Brazil, the USA and Europe in 2020 continued.
Guidance for 2019
Hartmann now expects total revenue to reach the upper end of the previously announced DKK 2.2-2.4 billion range after restatement for hyperinflation. The profit margin is expected to reach
around 11% before restatement for hyperinflation against the previous guidance of a profit margin between 9% and 11% before restatement for hyperinflation.The group’s performance in the final quarter of the year is expected to be favourably affected by continued volume growth, higher average selling prices and efficient core business operations and adversely affected by a normalised, reduced contribution from Hartmann Technology compared with 2018.Capital expenditure is expected to amount to about DKK 250 million before restatement for hyperinflation, compared with the previous estimate of about DKK 300 million. The adjustment is
attributable to protracted administrative processing related to the establishment of Hartmann’s new factory in Brazil and a resulting postponement of the group’s capacity expansion investments. Still, the new capacity is expected to be put into operation in 2020.

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.AttachmentInterim report Q3 2019

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.