XCSE:HH ESEF Annual Report
H+H INTERNATIONAL A/S (XCSE:HH)
ESEF Annual Report
2024-05-28
For: 2024-03-31
View Original
Added on
September 23, 2026
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 1/15
Interim financial report
Q1-2024
Company announcement No. 558, 2024
15 May 2024
Interim Financial Report, Q1-2024
1 January 2024 – 31 March 2024
CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE
“In the first quarter, we saw signs of market improvements in the UK and Poland resulting in 13% higher sales
volumes. Our business improvement program delivered in line with our expectations. However, gross margin in Q1
is still impacted by planned de-stocking and effects from unfavourable gas hedges. We expect this to improve going
forward. Across regions we are preparing for future growth by enhancing operational efficiencies and dedicated
investments to de-bottleneck plants and expand customer offerings” says CEO Jörg Brinkmann.
PERFORMANCE HIGHLIGHTS FOR Q1 2024 (Q1 2023)
▪ Sales volume increased by 13% to 719k m3 (634 k m
3
)
▪ Revenue growth measured in local currencies (“organic growth”) was negative 4% (negative 25%)
▪ Gross profit before special items was DKK 109 million (DKK 154 million), corresponding to a gross margin
of 17% (24%)
▪ EBITDA before special items was DKK 26 million (DKK 72 million), corresponding to an EBITDA margin
before special items of 4% (11%).
▪ EBIT before special items was negative DKK 21 million (positive DKK 21 million), corresponding to an EBIT
margin before special items of negative 3% (3%).
▪ Free cash flow was negative DKK 91 million (DKK negative 309 million).
▪ Financial gearing was 5.1 times EBITDA before special items at the end of Q1 2024 (1.4 times EBITDA at
the end of Q1 2023).
▪ Special items for the quarter was DKK 129 million, of which 93 million relates to the settlement of the gas
contract in accordance with plan.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 2/15
Interim financial report
Q1-2024
FINANCIAL HIGHLIGHTS FOR THE PERIOD
DKK million
Q1 2024
Q1 2023
Sales volume (thousand cubic metres)
719
634
Revenue
644
641
Organic growth
(4)%
(25)%
Gross margin before special items
17%
24%
EBITDA before special items
26
72
EBITDA margin before special items
4%
11%
EBIT before special items
(21)
21
EBIT margin before special items
(3)%
3%
Special items
(129)
(9)
Return on Invested Capital (ROIC)
(16)%
15%
NIBD/EBITDA before special items ratio
5.1x
1.4x
Free cash flow
(91)
(309)
FINANCIAL OUTLOOK FOR 2024
• Revenue growth measured in local currencies is expected to be ranging from -5% to +5%
• EBIT before special items is expected to be in the range of DKK 50 million to DKK 150 million
The financial outlook for 2024 is based on the following specific assumptions:
• Building activity in line with 2023 level
• Price discipline maintained in our key markets
• Exchange rates, primarily GBP, EUR and PLN remain at mid-May 2024 levels
Q1 2024 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the Q1 2024 Interim Financial Report, a conference call for investors and analysts
is scheduled for Wednesday 15 May 2024, at 12:00 p.m. CEST. On the call, Chief Executive Officer (“CEO”) Jörg
Brinkmann and Chief Financial Officer (“CFO”) Bjarne Pedersen will present the Q1 interim financial report. The
presentation will be followed by a Q&A session. Investors and analysts are invited to participate via phone (PIN
code: 275042):
DK: +45 78 76 84 90
UK: +44 203 769 6819
US: +1 646 787 0157
• Other participants can follow the conference call via live webcast here.
• The presentation slides for the conference call will be made available beforehand here.
• After the conference call, you can access the replay and transcript on H+H’s Investor Relations website here.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 3/15
Interim financial report
Q1-2024
KEY FIGURES – H+H GROUP
Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts.
Q1 Q1 Full-year
Amounts in DKK million 2024 2023 2023
Income statement
Revenue 644 641 2,672
Gross profit before special items 109 154 564
EBITDA before special items 26 72 244
EBITDA (103) 63 58
EBIT before special items (21) 21 57
EBIT (150) 12 (230)
Result before tax (167) 2 (283)
Result for the period (130) (7) (246)
Balance sheet
Assets 3,477 3,655 3,454
Invested capital 2,405 2,223 2,435
Net working capital 390 540 359
Equity 1,560 1,901 1,678
Net Interest-bearing debt (NIBD) 1,006 804 887
Cash flow
Cash flow from operating activities (65) (272) (209)
Cash flow from investing activities (26) (37) (137)
Free cash flow (91) (309) (346)
Cash flow from financing activities 122 386 131
Financial ratios
Organic growth (4)% (25)% (25)%
Gross margin before special items 17% 24% 21%
EBITDA margin before special items 4% 11% 9%
EBITDA margin (16)% 10% 2%
EBIT margin before special items (3)% 3% 2%
EBIT margin (23)% 2% (9)%
Return on invested capital (ROIC) (excl. Goodwill) (16)% 15% (9)%
Solvency ratio 42% 49% 46%
Financial gearing before special items ratio 5.1x 1.4x 3.6x
Share data
Share price, end of period (DKK) 70 108 89
Book value per share, end of period (DKK) 96 117 95
Earnings per share (7.9) (0.3) (15.0)
Diluted earnings per share (7.9) (0.3) (15.0)
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 4/15
Interim financial report
Q1-2024
MANAGEMENT’S REVIEW
CURRENT BUSINESS DEVELOPMENT
In the first quarter, there was an improvement in our
UK and Polish markets, in line with improvements in
consumer demand and business activities.
Conversely, the German market continues to face
challenges, with a decrease in market volumes and
an apparent stalling in its economic recovery.
Despite mixed market conditions, our adjustments
to business operations in 2023 have enabled us to
maintain financial stability and overall, market
activity was in line with our expectations.
The price development was in line with our
expectation. 2023 saw significant price increases in
the beginning of the year followed by adjustments in
line with inflation development. Since then, both
input cost and prices have declined, which is
affecting our organic growth.
In Germany, price increases were implemented in
the beginning of the year. In the UK, prices have
decreased following annual negotiations, after
maintaining prices throughout 2023 and in Poland,
prices have remained stable from Q4 2023 to Q1
2024.
Regional development
In the UK, inflation is on a decline, but the mortgage
environment remains challenging. The job market
remains robust and mortgage approvals were over
60,000 new mortgages in February 2024, which is
the first time since September 2022, albeit lower
than pre-pandemic levels. In the first quarter,
building registrations have dropped by 20% year-to-
date compared to the same period last year.
In the UK, we are investing in the efficiency of our
Borough Green plant, located south of London,
which is expected to increase the plant's capacity by
up to 20%. The upgrade is progressing to schedule
and is anticipated to be completed in the second
quarter of 2024.
In Poland, the solid momentum from Q4 2023
persisted into the first quarter of 2024, with the
number of building starts and permits increasing by
over 30% for March year-to-date compared to the
previous year. In December, funding for the Polish
government's safe 2% mortgage scheme was
exhausted. A successor program, is currently under
development and is expected to launch in the
second half of 2024. The details and assumptions of
this new program are still under discussion.
Demand in Germany remains low, with a 25%
decrease in building permits for February year-to-
date compared to same period previous year. The
swift and steep increase in interest rates, high
construction costs, and the lack of efficient
government support programs have worsened the
investment climate.
Gas unwinding
As outlined in the 2023 Annual Report, H+H has
decided to settle unfavourable gas contracts that
were established in the summer of 2022.
Consequently, a one-off loss of DKK 93 million was
recorded in the first quarter and classified as special
items. Additionally, the sale of unused hedged gas
back to the market led to a further loss of DKK 17
million, also recognised as special items. Thus, the
total cost related to unfavourable gas, classified as
special items in Q1 2024, amounted to DKK 110
million.
INCOME STATEMENT FOR THE FIRST QUARTER OF
2024
Revenue
Total revenue amounted to DKK 644 million for Q1
2024 which is at a similar level as Q1 2023 (DKK 641
million).
Revenue growth measured in local currencies
(“organic growth”) was negative 4% in Q1 2024
compared to negative 25% in Q1 2023.
Revenue in the CWE region decreased by 29% to DKK
245 million compared to DKK 345 million in Q1 2023.
Organic growth in the region was negative 30% as a
result of lower sales volumes and lower prices
despite prices in first quarter in 2024 being higher
than prices in Q4 2023.
Revenue in the United Kingdom increased by 26% to
DKK 184 million compared to DKK 146 million in Q1
2023. Organic growth of 22% in Q1 2024 was mainly
driven by higher volumes, partly offset by lower
prices.
Revenue, external
Amounts in DKK million 2024 2023
Central Western Europe 245 345
United Kingdom 184 146
Poland 215 150
Total 644 641
Q1
Revenue
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 5/15
Interim financial report
Q1-2024
Sale in Poland was strong in Q1 2024 and revenue
increased by 43% to DKK 215 million compared to
DKK 150 million in Q1 2023. Organic growth was 31%
driven by the increased demand, partly offset by
lower prices.
Gross profit before special items
Gross profit amounted to DKK 109 million compared
to DKK 154 million in Q1 2023, corresponding to
gross margins of 17% and 24%, respectively.
The reduced gross margin is mainly driven by de-
stocking, where same period last year saw a big
stock build. This offsets positive impact from lower
direct unit costs and the saving effects from the
2023 restructuring program.
EBITDA before special items
EBITDA before special items amounted to DKK 26
million compared to DKK 72 million in Q1 2023,
corresponding to EBITDA before special items
margins of 4% and 11%, respectively.
Depreciation and amortisation
Depreciation and amortisation in Q1 2024 amounted
to DKK 47 million compared to DKK 51 million in Q1
2023. The decline in depreciation is mainly due to
the closure of plants in 2023.
EBIT before special items
EBIT before special items amounted to negative DKK
21 million in Q1 2024, compared to positive DKK 21
million in Q1 2023, corresponding to EBIT margins
before special items of negative 3% and positive 3%,
respectively.
Special items
Special items of DKK 129 million for Q1 2024 mainly
relates to the difference between the fixed price and
the market price for the remaining contract period
for the unwinding gas contracts, DKK 93 million, loss
on unused gas sold, DKK 17 million and restructuring
costs of DKK 19 million. Please refer to Note 9 and
Note 11 for more information about special items for
the period.
Net financials
Net financials amount to an expense of DKK 17
million in Q1 2024, compared to an expense of DKK
10 million in Q1 2023. The development is mainly
driven by higher net interest-bearing debt.
Result before tax
Result before tax amounted to negative DKK 167
million in Q1 2024, compared to positive DKK 2
million in Q1 2023.
Tax
Tax for the period amounted to a net income of DKK
37 million compared to a net expense of DKK 9
million in Q1 2023.
Result for the period
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 129 million
and to non-controlling interests by DKK 1 million
compared to a loss of DKK 5 million and DKK 2
million, respectively, for Q1 2023.
Comprehensive income
Other comprehensive income for Q1 2024 amounted
to a profit of DKK 11 million compared to a loss of
DKK 29 million in Q1 2023. The year-on-year
development was mainly driven by a positive
development in actuarial gains net of tax partly
offset by the fair value adjustments of gas hedges of
negative DKK 10 million.
CASH FLOW
Operating activities
Cash flow from operating activities amounted to
negative DKK 65 million in Q1 2024 compared to DKK
negative 272 million in Q1 2023.
Despite lower earnings in Q1 2024 compared to Q1
2023, the operating cash flow is showing positive
development. This improvement is driven by positive
net working capital, resulting from reduced stock
and increased liabilities related to gas contract
settlements.
Investing activities
Cash flow from investing activities in Q1 2024
amounted to negative DKK 26 million compared to
negative DKK 37 million in Q1 2023.
Financing activities
Cash flow from financing activities amounted to
positive DKK 122 million in the first quarter of 2024
compared to DKK 386 million in Q1 2023 where
borrowings were increased by DKK 150 million.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 6/15
Interim financial report
Q1-2024
BALANCE SHEET
On 31 March 2024, the balance sheet total
amounted to DKK 3,477 million compared to DKK
3,655 million on 31 March 2023 mainly driven by a
decrease in inventories of DKK 121 million.
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 1,006
million as of 31 March 2024 corresponding to an
increase of DKK 119 million since 31 December 2023
and an increase of DKK 202 million since 31 March
2023. The development is in line with expectations
driven by a positive development in inventory due to
de-stocking offset by negative working capital items.
The Company’s net interest-bearing debt excluding
leasing totalled DKK 865 million on 31 March 2024
(DKK 701 million as per 31 March 2023).
Equity
The consolidated equity decreased by DKK 118
million compared to 31 December 2023 and
decreased by DKK 341 million compared to 31 March
2023.
MOST MATERIAL RISKS AND
UNCERTAINTIES
For most material risk and uncertainties, please refer
to Note 3 “Risks Management” and to Note 4
“Significant accounting estimates and judgements”.
EVENTS AFTER THE BALANCE SHEET DATE
No events have occurred after the balance sheet
date that will have a material effect on the parent
company’s or the H+H Company’s financial position.
FINANCIAL OUTLOOK FOR 2024
• Revenue growth measured in local currencies
is expected to be ranging from -5% to +5%
• EBIT before special items is expected to be in
the range of DKK 50 million to DKK 150 million
ASSUMPTIONS FOR THE FINANCIAL
OUTLOOK FOR 2024
Specific assumptions
The expectations for H+H’s financial performance in
2024 are based on certain specific and general
assumptions. Management believes that the most
significant of these assumptions relate to the
following items:
• Building activity in line with 2023 level
• Price discipline maintained in our key markets
• Exchange rates, primarily GBP, EUR and PLN
remain at mid-May 2024 levels
General assumptions
The expectations for H+H’s financial performance
are also based on certain general assumptions.
Management believes that the most significant
assumptions underlying H+H’s expectations relate
to:
• sales volumes and product mix;
• price competition;
• developments in the market for building
materials;
• distribution factors;
• weather conditions;
• macro-economic and geopolitical developments;
and
operational uptime at H+H’s production plants,
including the supply of relevant energy and raw
materials.
Equity
Q1 Q1
Amounts in DKK million 2024 2023
1 January 1,678 1,938
Result for the period (130) (7)
Actuarial gains/losses on pension
plans
15 (36)
Value adjustments of derivative
financial instruments
(10) -
Foreign exchange adjustments 6 7
Purchase of treasury shares - (2)
Share based payment 1 1
31 March 1,560 1,901
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 7/15
Interim financial report
Q1-2024
FINANCIAL CALENDAR 2024
H1 2024 Interim Financial Report
14 Aug 2024
Q3 2024 Interim Financial Report
20 Nov 2024
FORWARD-LOOKING STATEMENTS
The Interim Financial Report contains forward-
looking statements. Such statements are subject to
risks and uncertainties, as various factors, many of
which are beyond the control of H+H, may cause
actual developments and results to differ materially
from the expectations expressed in this document.
In no event shall H+H be liable for any direct,
indirect, or consequential damages or any other
damages whatsoever resulting from loss of use,
data, or profits, whether in an action of contract,
negligence, or other action arising out of or in
connection with the use of information in this
document.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 8/15
Interim financial report
Q1-2024
STATEMENT BY THE EXECUTIVE BOARD AND THE BOARD OF DIRECTORS
The Executive Board and the Board of Directors have today discussed and approved the interim financial report for
H+H International A/S for the first quarter of 2024.
The interim financial report, which has not been audited or reviewed by H+H’s auditors, has been prepared in
accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and the Danish disclosure
requirements for the interim financial reports of listed companies.
It is our opinion that the interim financial report gives a true and fair view of H+H’s assets, liabilities, and financial
position on 31 March 2024 and of the results of H+H’s operations and its cash flows for the period 1 January to 31
March 2024.
Furthermore, it is our opinion that management’s review provides a fair account of developments in H+H’s
operations and financial conditions, the results for the period and H+H’s overall financial position, as well as a
description of the most significant risks and uncertainties that H+H faces.
Copenhagen, 14 May 2024
EXECUTIVE BOARD
Jörg Brinkmann
CEO
Bjarne Pedersen
CFO
BOARD OF DIRECTORS
Kent Arentoft
Chair
Jens-Peter Saul
Vice chair
Stewart Antony Baseley
Volker Christmann
Kajsa von Geijer
Miguel Kohlmann
Helen MacPhee
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 9/15
Interim financial report
Q1-2024
CONDENSED INCOME STATEMENT
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q1 Q1 Full-year
Amounts in DKK million 2024 2023 2023
Revenue 644 641 2,672
Cost of goods sold (535 ) (487 ) (2,108 )
Gross profit before special items 109 154 564
Sales costs (35 ) (37 ) (149 )
Administrative costs (46 ) (46 ) (197 )
Other operating income and costs, net (2 ) 1 26
EBITDA before special items 26 72 244
Depreciation, amortisation and impairments (47 ) (51 ) (187 )
EBIT before special items (21 ) 21 57
Special items, net (129 ) (9 ) (287 )
EBIT (150 ) 12 (230 )
Financial income 4 2 24
Financial expenses (21 ) (12 ) (77 )
Result before tax (167 ) 2 (283 )
Tax 37 (9 ) 37
Result for the period (130 ) (7 ) (246 )
Result for the period attributable to:
H+H International A/S' shareholders (129 ) (5 ) (248 )
Non-controlling interest (1 ) (2 ) 2
Result for the period (130 ) (7 ) (246 )
Earnings per share (EPS-Basic) (7.9 ) (0.3 ) (15.0 )
Diluted earnings per share (EPS-D) (7.9 ) (0.3 ) (15.0 )
Group
Q1 Q1 Full-year
Amounts in DKK million 2024 2023 2023
Result for the period (130 ) (7 ) (246 )
Items that may be reclassified subsequently to profit or loss:
Fair value adjustments of derivative financial instruments (12 ) - (20 )
Gain/(loss) on derivative financial instruments transferred to the income
statements
Tax on fair value adjustment - - 3
Foreign exchange adjustments, foreign entities 6 7 63
(4 ) 7 56
Items that will not be reclassified subsequently to profit or loss:
Actuarial gains and losses 19 (45 ) (68 )
Tax on actuarial gains and losses (4 ) 9 15
Other comprehensive income after tax 11 (29 ) 3
Total comprehensive income for the period (119 ) (36 ) (243 )
Group
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 10/15
Interim financial report
Q1-2024
CONDENSED BALANCE SHEET
Group
31 March 31 December 31 March
Amounts in DKK million 2024 2023 2023
ASSETS
Non-current assets
Goodwill 422 422 420
Other intangible assets 232 240 259
Property, plant and equipment 1.792 1.773 1.814
Deferred tax assets 47 31 11
Financial assets 2 2 5
Total non-current assets 2.495 2.468 2.509
Current assets
Inventories 565 657 686
Receivables 243 190 242
Cash 174 139 218
Total current assets 982 986 1.146
TOTAL ASSETS 3.477 3.454 3.655
EQUITY AND LIABILITIES
Equity
Share capital 165 165 175
Retained earnings 1.412 1.526 1.780
Other reserves (102 ) (99 ) (148 )
Equity attributable to H+H International A/S’ shareholders 1.475 1.592 1.807
Equity attributable to non-controlling interests 85 86 94
Total equity 1.560 1.678 1.901
Non-current liabilities
Pension obligations 31 59 60
Provisions 69 31 37
Deferred tax liability 34 54 95
Credit institutions 1.039 907 919
Deferred payments, acquisition of subsidiary 99 99 105
Lease liabilities 117 95 79
Total non-current liabilities 1.389 1.245 1.295
Current liabilities
Lease liabilities 24 24 24
Trade payables 252 278 266
Income tax - 5 34
Deferred payment, acquisition of subsidiary 7 7 7
Provisions 79 7 6
Other payables 166 210 122
Total current liabilities 528 531 459
Total liabilities 1.917 1.776 1.754
TOTAL EQUITY AND LIABILITIES 3.477 3.454 3.655
Net interest-bearing debt 1.006 887 804
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 11/15
Interim financial report
Q1-2024
CONDENSED CASH FLOW STATEMENT
CONDENSED STATEMENT OF CHANGES IN EQUITY
Q1 Q1
Amounts in DKK million 2024 2023
Operating result (EBIT)
(150 ) 12
Depreciation, amortisation and impairment
Change in working capital
(34 ) (301 )
Change in provisions and pension contribution
Other non-cash adjustments
Operating activities before financial items and tax (42 ) (248 )
Financial items, net
(17 ) (10 )
Income tax paid
(6 ) (14 )
Operating activities (65 ) (272 )
Acquisition of property, plant and equipment and intangible assets (26 ) (37 )
Investing activities (26 ) (37 )
Proceeds from borrowings - 150
Bank overdraft and other debt 132 28
Payment of lease liabilities (10 ) (8 )
Purchase of treasury shares - (2 )
Financing activities 122 168
Total cash flow for the period 31 (141 )
Cash and cash equivalents, opening 139 358
Foreign exchange adjustments of cash 4 1
Cash and cash equivalents at 31 March 174 218
Amounts in DKK million
Share
capital
Hedging
reserve
Translation
reserve
Retained
earnings
H+H
shareholders
share
Non con-
trolling
interests’
share
Total
Equity at 1 January 2024 165 (7 ) (92 ) 1,526 1,592 86 1,678
Total changes in equity
Result for the period - - (129 ) (129 ) (1 ) (130 )
Other comprehensive income - (10 ) 6 15 11 - 11
Total comprehensive income - (10 ) 6 (114 ) (118 ) (1 ) (119 )
Share-based payment - - 1 1 - 1
Total changes in equity in 2024 - (10 ) 6 (113 ) (117 ) (1 ) (118 )
Equity at 31 March 2024 165 (17 ) (86 ) 1,413 1,475 85 1,560
Equity at 1 January 2023 175 - (155 ) 1,822 1,842 96 1,938
Total changes in equity
Result for the period - - - (5 ) (5 ) (2 ) (7 )
Other comprehensive income - - 7 (36 ) (29 ) - (29 )
Total comprehensive income - - 7 (41 ) (34 ) (2 ) (36 )
Share-based payment - - - 1 1 - 1
Purchase of treasury shares - (2 ) (2 ) - (2 )
Total changes in equity in 2023 - - 7 (42 ) (35 ) (2 ) (37 )
Equity at 31 March 2023 175 - (148 ) 1,780 1,807 94 1,901
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 12/15
Interim financial report
Q1-2024
NOTES
1. Accounting policies
The interim financial report for the period 1 January to 31 March 2024 has been prepared in accordance with the
IAS 34 “Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for the
interim financial reports of listed companies. The application of IAS 34 means that the disclosures are more limited
than in a complete annual report, but that the interim financial report complies with the recognition and
measurement principles in the International Financial Reporting Standards (IFRS). The interim financial report has
not been reviewed by H+H’s auditors.
The accounting policies are consistent with those applied in the 2023 Annual Report, which includes a full
description of the accounting policies applied.
2. Adoption of new and revised IFRSs
H+H International A/S has adopted all new or revised and amended International Financial Reporting Standards
(IFRSs) and interpretations (IFRIC) issued by IASB and endorsed by the EU effective for the financial year 2024. It is
assessed that the revisions and amendments have not had a material impact on the consolidated financial
statements.
3. Risk Management
H+H’s principal risks and the external factors that may affect H+H are provided in the 2023 Annual Report. These
are unchanged as of 31 March 2024.
4. Significant estimates and judgements
Determining the carrying amounts of some assets and liabilities requires Management to make judgements,
estimates and assumptions concerning future events. The estimates and assumptions made are based on historical
experience and other factors that are believed by Management to be sound under the circumstances but that, by
their nature, are uncertain and unpredictable. Financial statement items in which more significant accounting
estimates and judgements are applied are listed in Note 2 of the 2023 Annual report for H+H International A/S.
The estimates and assumptions may be incomplete or inaccurate, and unforeseen events or circumstances may
occur. Moreover, the H+H Group is subject to risks and uncertainties that may lead to the actual outcomes vary
from these estimates and assumptions. It may be necessary to change estimates and assumptions made previously
as a result of changes in the factors on which these were based or as a result of new knowledge or subsequent
events.
5. Seasonal fluctuations
The sales pattern for H+H’s products is seasonal. Sales in the second and third quarters are traditionally higher
than during the rest of the year. As a part of H+H’s cost base is not directly variable with revenue, deviations from
projected sales may result in considerable fluctuations in the Company’s earnings. As a result of the current
market situation the seasonal fluctuations are lower than in previous years.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 13/15
Interim financial report
Q1-2024
6. Income statement classified by function
The above table shows an extract of the income statement adapted to show depreciation and amortisation
classified by function.
7. Geographical information
When presenting information on geographical areas, information on revenue is based on countries with the
exception of the “Central Western Europe” region which comprises Germany, Switzerland, Denmark, Sweden, the
Czech Republic, Netherlands and Belgium.
Revenue for Germany for Q1 2024 amounted to DKK 150 million (2023: DKK 230 million).
Amounts in DKK million Q1 2024 Q1 2023
Revenue 644 641
Cost of goods sold (565) (521)
Gross profit including depreciation and amortisation 79 120
Sales cost (46) (49)
Administrative costs (52) (51)
Other operating income and costs (2) 1
EBIT before special items (21) 21
Special items, net (129) (9)
EBIT (150) 12
Depreciation and amortisation comprise:
Depreciation of property, plant and equipment 26 34
Amortisation of intangible assets 21 17
Total 47 51
Depreciation, amortisation and impairment are allocated to:
Production costs 30 34
Sales costs 11 12
Administration costs 6 5
Total 47 51
Amounts in DKK million Q1 2024 Q1 2023
Central Western Europe 245 345
United Kingdom 184 146
Poland 215 150
644 641
Revenue
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 14/15
Interim financial report
Q1-2024
8. Special items, net
As disclosed in the 2023 annual report H+H has decided to settle the remaining gas contracts entered in the
summer of 2022. As a consequence the day one loss, reflecting the loss at the time of falling outside the own-use
exemption has been recognised as special items in Q1 2024 amounting to DKK 93 million. In addition, a loss of gas
sold back to the market in Q1 2024 has been recognised as special items amounting to DKK 17 million.
Other special items for the first quarter of 2024 comprise restructuring costs of DKK 19 million.
9. Pension obligations
H+H has defined-benefit pension plans in the UK, Switzerland, and Germany. The UK and Swiss pension plans are
managed by a pension fund to which payments are made, whereas the German pension plan is funded from
current earnings. H+H’s pension obligations predominantly relate to the plans in the UK.
For interim periods, H+H’s defined-benefit pension obligations are based on valuations from external actuaries
carried out at the end of prior financial year considering any subsequent movements in the obligation due to
pension costs, contributions etc. up until the reporting date. Actuarial calculations are updated or extrapolated
quarterly.
The UK pension obligation on 31 March 2024 amounts to DKK 18 million, compared to DKK 47 million on 31
December 2023. The decrease is driven by payments, interest, value adjustment and currency adjustment.
10. Derivative financial instruments
In Q1 2024, H+H settled its commodity forward gas contracts, and therefore no assets or liabilities are measured at
fair value as of 31 March 2024. The fair value adjustment related to the forward gas contracts with the underlying
hedged item not realised yet amounts to DKK 17 million and are recognised in Equity and will be transferred to the
profit & loss statement upon utilisation.
11. Financial resources and cash flow
On 31 March 2024, net interest-bearing debt, totalled DKK 1,006 million, corresponding to an increase of DKK 119
million since the beginning of the year. The increase in net interest-bearing debt since the beginning of the year
was primarily driven by lower earnings due to a lower activity level as well as a negative working capital
development.
H+H’s financing is subject to usual financial covenants, which have been fulfilled in the first quarter of 2024 and
are also expected to be fulfilled for the full year 2024.
Amounts in DKK million Q1 2024 Q1 2023
Restructuring costs 19 9
Inefficient part of gas hedges, including settlement 110 -
Total 129 9
Impact of special items on EBIT
Cost of goods sold 115 5
Sales and administrative costs 14 4
EBIT before special items 129 9
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 15/15
Interim financial report
Q1-2024
12. Share-based payment
The performance-share-units schemes for 2023, 2022 and 2021 are active and presented in the 2023 Annual
Report.
In April 2024, the Board of Directors of H+H International A/S implemented a new long-term incentive programme
(“LTIP”) being a performance share unit (“PSU”) program. At initiation, a total of approximately 160,300 PSUs were
granted to the participants, including 47,850 PSUs to CEO Jörg Brinkmann and 17,600 PSUs to CFO, Bjarne
Pedersen. Based on the average share price for H+H shares trading on the Nasdaq Copenhagen stock exchange
during the first ten days after the release of the 2023 Annual Report on 5 March 2024, the theoretical value per
PSU is DKK 68.02, corresponding to a total theoretical value of DKK 10.9 million if all 160,300 were to vest. The
vesting period for the PSUs is approximately three years, with vesting being in 2027 when the audited annual
report for 2026 is published.
13. Tax
14. Related parties
Related parties of H+H with significant influence include the Board of Directors and the Executive Board of the
Company and their close family members. Related parties also include companies in which the aforementioned
persons have control or significant interests.
Transactions with related parties
H+H did not enter into any significant transactions with members of the Board of Directors or with members of the
Executive Board, except for compensation and benefits received as a result of their membership of either the
Board of Directors, employment with H+H or shareholdings in H+H.
15. Share capital
There have been no movements in the share capital in the last five years except for the changes stated in Note 19
“Share capital and treasury shares” of the 2023 Annual Report.
16. Events after the balance sheet date
No events have occurred after the balance sheet date that will have a material effect on the parent company’s or
the H+H Group’s financial position.
Amounts in DKK million Q1 2024 Q1 2023
Current tax 21 (10)
Movement in deferred tax 16 1
Tax 37 (9)