7.3.2023 14:45:11 CET | Brødrene Hartmann A/S | Annual Financial Report

2022 was an extraordinarily turbulent year with unprecedented increases in energy and raw material prices, high inflationary pressure, macroeconomic challenges, and geopolitical tension. Despite the challenges, Hartmann delivered solid business performance driven by necessary pricing actions across markets and cost containment efforts.

The cost of Hartmann’s two most important raw materials – energy and recycled paper – rose to new heights continuing a sharp upwards trend from 2021. The cost level was accelerated by Russia’s invasion of Ukraine driving natural gas and electricity prices up in all markets and to all-time highs in Europe during Q3 2022.

The overall demand for egg packaging was lower than expected and impacted by two opposite effects. High inflation rates reduced the consumers’ disposable income entailing a trade down effect where expensive protein sources such as meats and fish were replaced by eggs. At the same time, egg supply declined due to severe outbreaks of avian flu and surging feed costs causing unusually high egg prices. Despite general market softness, Hartmann grew volumes and increased market share in several markets.

CEO Torben Rosenkrantz-Theil says: “Despite historical high cost levels and soft demand, we successfully grew revenue and secured a satisfactory profit margin of 7.5%. 2023 is expected to be another volatile year with poor visibility on energy and raw material prices, challenging macroeconomics, avian flu, high inflation, and unpredictable geopolitics. We are however confident that we will once again navigate Hartmann through troubled waters.”

2022 results

• Group revenue increased to DKK 3,350 million (2021: DKK 2,666 million).
• Operating profit before restatement for special items and hyperinflation was DKK 252 million (2021: DKK 251 million) corresponding to a profit margin of 7.5% (2021: 9.5%).
• Investments decreased to DKK 186 million (2021: DKK 527 million).

Conference call 8 March at 9.00 (CET)
Hartmann will host a conference call at which CEO Torben Rosenkrantz-Theil and CFO Flemming Steen will review the financial results, the outlook and answer questions. Registration is not required. The conference call will be conducted in English and can be heard live here and at investor.hartmann-packaging.com, where the accompanying presentation will be available.

Participants should dial the numbers provided below and enter PIN 348024.
Denmark: + 45 78 76 84 90
UK: + 44 (0) 20 37 69 68 19
US: + 1 64 67 87 01 57

Contacts

• Torben Rosenkrantz-Theil, CEO, (+45) 4597 0057

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 Annual report 2022.pdf
• hartmann-2022-12-31-en.zip