March 4, 2021 01:51 ET | Source: HH International A/SHH International A/S
Today, the board of directors of HH International A/S (hereinafter referred to as "HH" or "the Group") approved the 2020 annual report.
Chief Executive Michael T. Andersen (Michael T. Andersen) quoted: “In a year marked by lockdown after the global pandemic, the second-best EBIT in HH history and the highest after-tax profit in history were An amazing achievement. This proves our continued strong strategy execution and all the dedication and hard work of HH employees. In addition, with the release of our first independent sustainability report for 2020, we can An important milestone has been reached in the journey of continuous development, marking our goal of achieving net zero emissions (possibly net negative emissions) from our products and operations by 2050."
Financial review (2019 figures in parentheses) Total revenue, including acquisitions and divestitures, fell by 7% to DKK 2.654 billion (DKK 2.84 billion). Revenue in local currency, excluding acquisitions and divestitures (organic growth), fell by 6%.
The negative organic growth was mainly due to the national blockade in the United Kingdom and the general weakness of the Polish market, but was partially offset by the strong growth in the first quarter of 2020, when the weather conditions of the wall construction were very good.
AAC accounted for 68% (71%) of total revenue, while CSU accounted for 32% (29%).
The gross profit margin before special items was 31% (31%), which was negatively affected by lower output and higher input costs, but was offset by lower transportation costs, efficiency improvements and price increases.
EBITDA before special items decreased by 3% to 521 million Danish kroner (549 million Danish kroner), which corresponds to an EBITDA margin of 20% (19%) before special items. The relatively high EBITDA margin was mainly due to price increases and the impact of the entire group's flexible plan, partially offset by the decline in sales.
The EBIT before special projects was 332 million Danish kroner (366 million Danish kroner), and the corresponding EBIT margin before special projects was 13% (13%).
Profit after tax is 251 million Danish kronor (150 million Danish kroner).
Capital expenditures total 134 million DKK (126 million DKK). Initially, the level of capital expenditure in 2020 was expected to be higher, but the group re-evaluated its capital expenditure plan as part of the resiliency plan launched after the COVID-19 pandemic. These plans include postponing the construction of the Polish CSU plant at Radar near Gdansk until 2021.
For targeted guidance, the annual operating capital expenditure level in the next few years is expected to be approximately 200 million Danish kroner.
Driven by strong EBITDA and positive changes in working capital, free cash flow reached 219 million DKK (264 million DKK).
The return on invested capital (ROIC) is 18% (20%).
The expectation of HH's 2021 financial performance is based on the following specific assumptions:
Share Repurchase Program HH's board of directors decided to launch a share repurchase program of up to DKK 100 million. For more information on the share repurchase program, please see a separate company announcement.
The 2020 full-year conference call is related to the release of the 2020 annual report. The conference call for investors and analysts is scheduled for today, March 4, 2021, at 10:00 AM Central European Time. During the conference call, CEO Michael T. Andersen and CFO Peter Klovgaard-Jørgensen will present annual reports. After the speech, there will be a question and answer session.
The conference call can be conducted via the webcast here.
The presentation slides of the conference call will be provided here in advance.
A replay of the conference call will be available on HH's investor relations website.
Other annual publications In addition to the 2020 annual report, HH today also released its first independent 2020 sustainability report. The 2020 Sustainability Report is available here.
In addition, the following documents were released today and made available on the expert group website:
For more information, please contact: Andreas Holkjær Investor Relations and Money Manager 45 24 48 03 67 aho@HplusH.com
The core business of HH International A/S is the manufacture and sale of wall building materials, with revenue of DKK 2.654 billion in 2020. The main product line is aerated concrete blocks and calcium silicate units for new residential construction. HH has 29 factories in northern and central Europe, with a total annual output of more than 4 million cubic meters, and is in a leading position in most markets. HH has more than 1,500 employees and is listed on NASDAQ Copenhagen.