Annual report 2015: Unpacking our potential

Hartmann generated strong results that were in line with our expectations for 2015 and form a platform for meeting our financial targets for 2017. The integration of the South American activities, the expansion in North America and the ongoing activities to enhance efficiency in Europe progressed according to plan. We expect the positive trend to continue in 2016 through expansion of capacity and optimisation of operations across our markets.

CEO Ulrik Kolding Hartvig says: Our business generated positive results in line with our expectations for 2015, and we continue to balance growth against efficiency improvement measures for continued stable and profitable growth. The year 2016 will be another exciting year with a key focus on establishing our new American factories, strengthening our European business and developing products in order to create added value for our customers.

Q4 2015

Hartmann lifted revenue to DKK 564 million (2014: DKK 478 million) and operating profit* to DKK 78 million (2014: DKK 75 million), corresponding to a profit margin* of 13.9% (2014: 15.8%).The positive development was mainly attributable to the addition of the South American activities and utilisation of the expanded production capacity in North America. Europe generated revenue of DKK 348 million (2014: DKK 377 million), and operating profit was DKK 43 million (2014: DKK 57 million), corresponding to a profit margin of 12.4% (2014: 15.1%). The development could be attributed to a lower contribution from Hartmann Technology and the group's combined heat and power plant in Denmark, while increased sales of moulded-fibre packaging contributed positively to the development. For the Americas, revenue reached DKK 216 million (2014: DKK 100 million), and operating profit grew to DKK 41 million (2014: DKK 25 million), corresponding to a profit margin of 19.0% (2014: 25.2%). The development was driven by the addition of the South American activities and organic growth in North America.

2015

Revenue was DKK 2,133 million (2014: DKK 1,615 million), operating profit increased to DKK 234 million (2014: DKK 163 million), lifting the profit margin to 11.0% (2014: 10.1%), and special costs amounted to DKK 101 million (2014: DKK 7 million). Return on invested capital was 21.7% (2014: 22.3%). The Board of Directors proposes dividends of DKK 9.50 (2014: DKK 9.50) per share. Hartmann's European business reported revenue of DKK 1,248 million (2014: DKK 1,296 million), operating profit of DKK 112 million (2014: DKK 128 million) and a profit margin of 9.0% (2014: 9.9%). The North and South American activities generated revenue of DKK 886 million (2014: DKK 319 million), and operating profit reached DKK 146 million (2014: DKK 60 million), corresponding to a profit margin of 16.5% (2014: 18.7%).

Outlook for 2016 and targets for 2017

In 2016, revenue is expected to be DKK 2.1-2.2 billion and the profit margin 11-12.5%. We maintain our financial targets for 2017 of revenue of DKK 2.2-2.4 billion and a profit margin of 12-14%.

On Wednesday 9 March at 9.00 (CET), Hartmann will host a conference call at which CEO Ulrik Kolding Hartvig and CFO Marianne Rørslev Bock 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 at investor.hartmann-packaging.com, where relevant telephone numbers, conference code and the accompanying presentation will be available.

For further information, please contact:

Ulrik Kolding Hartvig
CEO
Phone: (+45) 45 97 00 57

* Operating profit refers to operating profit before special items and profit margin to profit margin before special items.

Annual report 2015


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Source: Brødrene Hartmann A/S via Globenewswire
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