15.11.2023 14:57:30 CET | Brødrene Hartmann A/S | Quarterly report

Hartmann delivered Q3 2023 revenue as expected and operating profit recovered compared to the same quarter last year, where performance was significantly impacted by historically high raw material prices. Guidance for 2023 was narrowed within existing outlook ranges. 

While the Americas segment continued to increase revenue, the overall decline was attributable to the development in Eurasia, where revenue in the comparison quarter in 2022 was lifted by temporary charges linked to historically high energy prices.  

Operating profit reached a normalised level compared to Q3 2022, where earnings were significantly impacted by high raw material prices. Q3 2023 progress was attributable to both segments. In Eurasia, earnings mainly arose from lower raw material prices and improved price mix, and in the Americas from higher revenue, volume growth and cost improvements. In Q3 raw material prices remained volatile and above pre-energy crisis levels.

Investments mainly related to continued and ongoing capacity expansion across the segments.

Q3 2023

• Group revenue declined to DKK 823 million (2022: DKK 861 million).
• Operating profit* increased to DKK 81 million (2022: DKK 25 million).
• Investments came to DKK 61 million (2022: DKK 51 million). 

CEO Torben Rosenkrantz-Theil says: ”Overall, financial performance was in line with expectations and guidance for 2023 was narrowed. Against Q3 2022, characterised by unusually high energy and paper prices, the results of the present quarter were at a more normalised level, and driven by both the Eurasia and Americas segments.”  

Based on the financial performance in Q3 and year-to-date, Hartmann narrowed its full-year guidance ranges. Hartmann now expects to generate revenue in the lower end of the range of DKK 3.4-3.8 billion due to the development of energy prices, where temporary energy charges are expected to have reduced effect on revenue. Assuming stable energy prices for the balance of the year operating profit* is now expected in the upper half of the range of DKK 375-475 million as the raw material price development is expected to recover the earnings level. The investment outlook of around DKK 300 million excluding the insurance covered re-establishment of the factory in India is unchanged.

* 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 Q3 2023.pdf