9.5.2023 14:00:32 CEST | Brødrene Hartmann A/S | Interim report (Q1 and Q3)

Hartmann recorded significantly increased revenue and earnings in Q1 2023. The positive development was driven by adjusted selling prices and favourable product mix, substantial temporary surplus from energy cost coverage as well as increased capacity utilisation and efficiencies. The results were achieved despite continued general inflationary pressure and markets that remain volatile and with low visibility.

In a continued inflationary environment, the solid revenue increase was attributable to both Americas, in particular North America, and Eurasia. Both segments were supported by higher average selling prices and improved product mix, while market volume was impeded by reduced egg supply.  

Higher revenue, substantial temporary surplus from energy cost coverage as well as increased capacity utilisation and efficiencies entailed a significant increase in operating profit in Q1 2023. The downward trend on energy prices from Q4 2022 continued in Q1 2023, yet remaining significantly above normalised level. All raw material prices are expected to remain high and volatile in 2023.

As expected, the investment level increased in Q1 2023. DKK 38 million related to re-establishment of the factory in India - of which the majority was reimbursed by insurance.

Q1 2023

• Group revenue grew to DKK 913 million (2022: DKK 753 million).
• Operating profit* amounted to DKK 157 million (2022: DKK 42 million).
• Investments increased to DKK 65 million (2022: DKK 34 million).

CEO Torben Rosenkrantz-Theil says: ”Despite continued inflationary pressure and reduced egg supply, we delivered a solid financial performance in Q1 2023. Pricing actions across markets and volume growth in North America, where we also increased capacity utilisation, contributed positively. In addition, we were aided by a substantial temporary surplus from energy cost coverage. We still expect energy prices to remain volatile and higher than pre-crisis level.” 

Guidance for 2023 was updated 1 May 2023, cf. company announcement no. 6/2023. Here, Hartmann announced the expectation to generate consolidated revenue of DKK 3.4-3.8 billion for an operating profit* of DKK 300-400 million. Investments are expected at around DKK 300 million, excluding the insurance covered re-establishment of the factory in India. 

* Operating profit is presented before special items and restatement for hyperinflation.

Contacts

• Torben Rosenkrantz-Theil, CEO, (+45) 2728 2856

About Brødrene Hartmann A/S

Hartmann is the world’s leading manufacturer of moulded-fibre egg packaging and a market-leading manufacturer of fruit packaging in South America and India. The group is also the world’s largest manufacturer of technology for the production of moulded-fibre packaging. Founded in 1917, Hartmann’s market position builds on its strong technology know-how and extensive experience of sustainable moulded-fibre production dating back to 1936. Hartmann sells egg and fruit packaging to manufacturers, distributors and retail chains, which are increasingly demanding sustainable packaging solutions and specialised marketing expertise. Our versatile product portfolio is customised to accommodate customer and consumer needs in each individual market. Hartmann sells machinery and technology to manufacturers of moulded-fibre packaging in selected markets. Headquartered in Gentofte, Denmark, with a production platform consisting of 15 factories in Europe and Israel, North and South America, and India and Russia (discontinuing).

Attachments

• Hartmann interim report Q1 2023.pdf