XCSE:HH ESEF Annual Report
H+H INTERNATIONAL A/S (XCSE:HH)
ESEF Annual Report
2024-08-28
For: 2024-06-30
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Added on
September 22, 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
H1-2024
Company announcement No. 565, 2024 13 August 2024
Interim Financial Report, H1 2024
CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE
“Second quarter confirmed the positive market trends in the UK and Poland leading to strong organic growth in
both countries in line with expectations. As a consequence, we are reinstalling capacity and will reopen our
mothballed plant in Pollington (UK) to be prepared for future market growth. In Germany we are not seeing a
recovery and new build activity is again significantly below last year. Consequently, we are not seeing the full
potential of our business improvement results yet. The likely sale of land in Warsaw will bring our financial gearing
closer to our long-term financial target” says CEO Jörg Brinkmann.
PERFORMANCE HIGHLIGHTS FOR Q2 2024 (Q2 2023)
▪ Sales volume increased by 8% to 779k m³ (723 k m³), driven by growth in the UK and Poland, offset by the
German market, which is weaker than last year.
▪ Revenue growth measured in local currencies (“organic growth”) was negative 3% (negative 26%). We see
stable pricing across our markets compared to Q1 2024.
▪ Gross profit before special items was DKK 132 million (DKK 178 million), corresponding to a gross margin
of 18% (24%). The decrease in gross margin is driven by de-stocking and excess gas costs.
▪ EBIT before special items was negative DKK 5 million (positive DKK 38 million), corresponding to an EBIT
margin before special items of negative 1% (positive 5%).
▪ Financial gearing was 6.5 times EBITDA before special items at the end of Q2 2024 (2.0 times EBITDA at
the end of Q2 2023), which aligns with our expectations, and anticipated to decrease over the upcoming
quarters. Additionally, the potential land sale in Warsaw will further improve the financial gearing.
OTHER KEY EVENTS
▪ Temporary closure of the Borough Green plant in the UK during July. Until now and during the coming
ramp-up phase the expected financial loss (EBIT before special items) of the lost production and directly
related costs are in the region of DKK 10-15 million.
▪ Decision on re-opening the mothballed plant in Pollington to secure future supply in 2025.
▪ H+H has agreed on a conditional sale of land and buildings of its closed down factory in Warsaw to Polish
residential developer ROBYG Group for a price of PLN 110 million (approximately DKK 190 million).
FINANCIAL OUTLOOK FOR 2024 NARROWED
The German market situation and the temporary closure of the Borough Green plant in the UK during July are
leading us to narrow our guidance. Potential land sale in Warsaw will be made in cash and be treated as a special
item, having no impact on full-year guidance expectations and will reduce net debt by approximately DKK 190
million.
▪ Revenue growth measured in local currencies is expected to around 0% (from -5% to +5%)
▪ EBIT before special items is expected to be in the range of DKK million 50 to 100 (from 50 to 150)
H1 2024 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the H1 2024 Interim Financial Report, a conference call for investors and analysts
is scheduled for Wednesday 14 August 2024, at 10:00 p.m. CEST. The presentation will be followed by a Q&A
session. Participants can follow the conference call via live webcast 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 2/15
Interim financial report
H1-2024
KEY FIGURES – H+H GROUP
Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts.
Q2 Q2 H1 H1 Full-year
Amounts in DKK million 2024 2023 2024 2023 2023
Income statement
Revenue 725 731 1,369 1,372 2,672
Gross profit before special items 132 178 241 332 564
EBITDA before special items 41 87 67 159 244
EBITDA 28 78 (75) 150 58
EBIT before special items (5) 38 (26) 59 57
EBIT (18) (127) (168) (115) (230)
Result before tax (39) (139) (206) (137) (283)
Result for the period (29) (101) (159) (108) (246)
Balance sheet
Assets 3,424 3,764 3,424 3,764 3,454
Invested capital 2,330 2,341 2,330 2,341 2,435
Net working capital 287 534 287 534 359
Equity 1,543 1,787 1,543 1,787 1,678
Net Interest-bearing debt (NIBD) 993 875 993 875 887
Cash flow
Cash flow from operating activities 56 (116) (9) (295) (209)
Cash flow from investing activities (34) (45) (60) (82) (137)
Free cash flow 22 (161) (69) (377) (346)
Cash flow from financing activities (30) 264 92 340 131
Financial ratios
Organic growth (3)% (26)% (4)% (26)% (25)%
Gross margin before special items 18% 24% 18% 24% 21%
EBITDA margin before special items 6% 12% 5% 12% 9%
EBITDA margin 4% 11% (5)% 11% 2%
EBIT margin before special items (1)% 5% (2)% 4% 2%
EBIT margin (2)% (17)% (12)% (8)% (9)%
Return on invested capital (ROIC) (excl. Goodwill) (12)% 2% (12)% 2% (9)%
Solvency ratio 42% 45% 42% 45% 46%
Financial gearing before special items ratio 6.5x 2.0x 6.5x 2.0x 3.6x
Share data
Share price, end of period (DKK) 100 82 100 82 89
Book value per share, end of period (DKK) 94 102 94 102 102
Earnings per share (1.7) (5.8) (9.8) (6.2) (15.0)
Diluted earnings per share (1.7) (5.8) (9.8) (6.2) (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 3/15
Interim financial report
H1-2024
MANAGEMENT’S REVIEW
CURRENT BUSINESS DEVELOPMENT
Volumes and prices
In the second quarter, the trends from the first
quarter were confirmed in Poland and UK where we
are growing. Conversely, Germany shows no signs of
recovery in the short to mid-term.
The overall price development met our expectations.
In Germany, the price increases implemented at the
start of the year held steady through the second
quarter. Prices in the UK have remained stable since
the beginning of the year, while in Poland, we
managed to increase price in the second quarter
over first quarter. However, compared to last year,
our overall prices are lower following a significant
drop in input costs since the beginning of last year.
During this quarter, our sales volumes grew by 8%,
and we achieved -3% organic growth. This was partly
driven by country mix of -5% and negative price
growth of -5%.
Regional market development
UK
In the UK, mortgage approvals have been stable
since the start of the year and building registrations
have been increasing. We remain optimistic on the
overall outlook in the UK following the recent
election with a victory for the Labour Party. Labour’s
flagship policy, "Get Britain Building Again," aims to
construct over 1.5 million homes over 5 years.
Poland
In Poland, building starts and permits continues to
increase. However, the demand for home loans has
slowed following the conclusion of applications
under the "2% Safe Credit" program. Excluding the
impact of the 2% loan program, mortgage issuance
remains stable.
The successor program "Kredyt na Start / Loan for
Start" is set to launch at the beginning of 2025, with
a potential allocation of up to PLN 11 billion over five
years. The program is still under negotiation and will
require approval from ruling coalition partners.
Germany
The outlook in Germany continues to show no signs
of recovery in the short to mid-term. On top of
higher interest rates, high construction costs
resulting from regulation and the absence of
effective government support programs has further
deteriorated the investment climate and building
permits and mortgage loans are on a downward
trend.
OTHER KEY EVENTS
Operations resumed at Borough Green
As stated in company announcement no. 560 on July
5, 2024, production at H+H UK Limited’s Borough
Green facility was temporarily closed and the plant is
now back in operations and consequently, is being
gradually ramped up. Until now and during the
coming ramp-up phase the expected financial loss
(EBIT before special items) of the lost production and
directly related costs are in the region of DKK 10-15
million.
To support the market in the UK and because of the
Borough Green closure, we will reopen the
mothballed Pollington factory to ensure future
supply. The factory is expected to ramp up
operations during Q4 2024.
Further restructuring needed in Germany
In the current environment, we are concentrating on
our business improvement programme, "Project
One," with the strategic objective of integrating CWE
into a single business. This involves presenting one
face to the customer, simplifying and streamlining
our product portfolio, and enhancing plant
utilisation and uptime to achieve higher efficiency.
These efforts will position us well for when the
market recovers.
To support the further restructuring, we expect to
spend up to additional DKK 20 million in special
items. The restructuring primarily relates to sales
and administration.
Sale of land in Warsaw
H+H has agreed to a conditional sale of land and
buildings from its closed factory in Warsaw to Polish
residential developer ROBYG Group for a price of
PLN 110 million net of tax (approximately DKK 190
million). The factory was closed as part of the factory
network restructuring program carried out in 2023.
We remain committed to the Polish market, with the
Warsaw market now being supplied from other
nearby factories. The completion of the transaction
is contingent upon a tax ruling and statutory pre-
emption rights of the City of Warsaw. Completion is
expected to take place no later than November
2024. For more information, please see company
announcement no. 564.
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
H1-2024
INCOME STATEMENT FOR THE SECOND QUARTER
OF 2024
Revenue
Total revenue amounted to DKK 725 million for Q2
2024 which is at a similar level as Q2 2023 (DKK 731
million).
Revenue growth measured in local currencies
(“organic growth”) was negative 3% in Q2 2024
compared to negative 26% in Q2 2023.
Revenue in the CWE region decreased by 25% to DKK
268 million compared to DKK 355 million in Q2 2023.
Organic growth in the region was negative 25% as a
result of lower sales volumes and slightly lower
prices vs. same period last year.
Revenue in the United Kingdom increased by 11% to
DKK 247 million compared to DKK 222 million in Q2
2023. Organic growth of 9% in Q2 2024 was driven
by higher volumes partly offset by lower prices vs.
same period last year.
Sales in Poland continued to be strong in Q2 2024
and revenue increased by 36% to DKK 210 million
compared to DKK 154 million in Q2 2023. Organic
growth was 30% driven by increased volumes, with
prices on par with same period last year.
Gross profit before special items
Gross profit amounted to DKK 132 million compared
to DKK 178 million in Q2 2023, corresponding to
gross margins of 18% and 24%, respectively.
The decrease in gross margin is driven by de-stocking
and excess gas costs. At the end of the quarter, there
are no more stock with excess gas costs and gas is
purchased at normal market rates.
At the end of the quarter stock levels are now at
levels where no further reductions are expected.
EBITDA before special items
EBITDA before special items amounted to DKK 41
million compared to DKK 87 million in Q2 2023,
corresponding to EBITDA before special items
margins of 6% and 12%, respectively.
Depreciation and amortisation
Depreciation and amortisation in Q2 2024 amounted
to DKK 46 million compared to DKK 49 million in Q2
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
5 million in Q2 2024, compared to positive DKK 38
million in Q2 2023, corresponding to EBIT margins
before special items of negative 1% and positive 5%,
respectively.
Special items
Special items of DKK 13 million for Q2 2024 relates
to restructuring costs. Please refer to Note 8 for
more information about special items for the period.
Net financials
Net financials amount to an expense of DKK 21
million in Q2 2024, compared to an expense of DKK
12 million in Q2 2023. The development is mainly
driven by higher net interest-bearing debt and
higher interest rates.
Result before tax
Result before tax amounted to negative DKK 39
million in Q2 2024, compared to negative DKK 139
million in Q2 2023.
Tax
Tax for Q2 2024 amounted to a income of DKK 10
million compared to a net income of DKK 38 million
in Q2 2023.
Result for the period
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 28 million
and to non-controlling interests by DKK 1 million
compared to a loss of DKK 101 million and DKK 0
million, respectively, for Q2 2023.
Comprehensive income
Other comprehensive income for Q2 2024 amounted
to a profit of DKK 12 million compared to a loss of
DKK 10 million in Q2 2023. The year-on-year
development was mainly driven by the development
in foreign exchange adjustment and
actuarial gains offset by the fair value adjustment
recognised in 2023.
Revenue, external
Amounts in DKK million 2024 2023 2024 2023
Central Western Europe 268 355 513 700
United Kingdom 247 222 431 368
Poland 210 154 425 304
Total 725 731 1,369 1,372
Revenue
Q2
H1
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
H1-2024
INCOME STATEMENT FOR THE FIRST SIX MONTHS
OF 2024
Revenue
Total revenue for the first six months of 2024
amounts to DKK 1,369 million compared to DKK
1,372 million in the first six months of 2023. Organic
growth was negative 4% in the first six months of
2024 compared to negative 26% for the first six
months of 2023.
Gross profit before special items
Gross profit in the first six months of 2024 decreased
by 27% to DKK 241 million compared to DKK 332
million in 2023, corresponding to gross margins of
18% and 24%, respectively. The decrease in gross
margin is driven by de-stocking and excess gas costs.
EBITDA before special items
EBITDA before special items in the first six months of
2024 decreased by 58% to DKK 67 million compared
to DKK 159 million in 2023, corresponding to EBITDA
margins of 5% and 12%, respectively.
Depreciation and amortisation
Depreciation and amortisation in the first six months
of 2024 amounted to DKK 93 million compared to
DKK 100 million in first six months of 2023. The
decrease is mainly due to closure of plants in 2023.
EBIT before special items
EBIT for the first six months of 2024 decreased by
DKK 85 million compared to the first six months of
2023, corresponding to EBIT margins of negative 2%
and positive 4%, respectively.
Special items
Special items of DKK 142 million for the first six
months in 2024 relates to the difference between
the fixed price and the market price for the
remaining contract period for the settled gas
contracts, DKK 93 million, loss of unused gas sold,
DKK 17 million and restructuring costs of DKK 32
million. Please refer to Note 8 for more information
about special items for the period.
Net financials
Net financials amounted to an expense of DKK 38
million in first six months 2024, compared to an
expense of DKK 22 million in first six months of 2023.
The development is mainly driven by increase in
interest expenses from an increased debt position
and interest rates.
Result before tax
Result before tax for the first six months of 2024
amounted to a loss of DKK 206 million, compared to
a loss of DKK 137 million in first six months of 2023.
Tax
Tax for the period amounted to a net income of DKK
47 million compared to a net income of DKK 29
million in first six months of 2023.
Result for the period
Result for the first six months of 2024 decreased by
DKK 51 million to a loss of DKK 159 million,
compared to a loss of DKK 108 million in 2023.
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 161 million
and a profit to non-controlling interest by DKK 2
million compared to a loss of DKK 108 million and
DKK 0 million, respectively, for the first six months of
2023.
Comprehensive income
Other comprehensive income for the first six months
of 2024 was positive DKK 23 million compared to
negative DKK 39 million for the first six months of
2023.
CASH FLOW
Operating activities
Cash flow from operating activities amounted to DKK
56 million in Q2 2024 compared to DKK negative 116
million in Q2 2023.
This improvement compared to same period 2023 is
driven by positive net working capital development,
resulting primarily from de-stocking as our stock
level has been reduced with more than DKK 250
million since June 2023.
Cash flow from operating activities in the first six
months of 2024 was negative DKK 9 million
compared to negative DKK 295 million in H1 2023
due to the positive development in net working
capital.
Investing activities
Cash flow from investing activities in Q2 2024
amounted to negative DKK 34 million compared to
negative DKK 45 million in Q2 2023.
Cash flow from investing activities in first six months
of 2024 was negative DKK 60 million, compared to
negative DKK 82 million in the first half of 2023.
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
H1-2024
Financing activities
Cash flow from financing activities amounted to
negative DKK 30 million in the second quarter of
2024 compared to DKK 264 million in Q2 2023.
Cash flow from financing activities amounted to DKK
92 million in first half of 2024 compared to DKK 340
million in 2023 where H+H drew on credit facilities,
due to the development in earnings and working
capital.
BALANCE SHEET
On 30 June 2024, the balance sheet total amounted
to DKK 3,424 million compared to DKK 3,764 million
on 30 June 2023 mainly driven by a decrease in
inventories of DKK 263 million.
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 993
million as of 30 June 2024 corresponding to an
increase of DKK 106 million since 31 December 2023
which is driven by negative operating results, capex
and new leases partly off-set by positive NWC
impact.
Equity
The consolidated equity decreased by DKK 135
million compared to 31 December 2023 and
decreased by DKK 244 million compared to 30 June
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
except for the two events described on page 3 and
Note 15 in relation to sale of land in Warsaw and
temporary production stop at the Borough Green
production facility.
FINANCIAL OUTLOOK FOR 2024
▪ Revenue growth measured in local currencies
is expected to be around 0%.
▪ EBIT before special items is expected to be in
the range of DKK 50 million to DKK 100 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.
FINANCIAL CALENDAR 2024
Q3 2024 Interim Financial Report
19 Nov 2024
Equity
H1 H1
Amounts in DKK million 2024 2023
1 January 1,678 1,938
Result for the period (159) (108)
Actuarial gains/losses on pension
plans
22 (38)
Value adjustments of derivative
financial instruments
(7) (43)
Foreign exchange adjustments 8 42
Purchase of treasury shares - (2)
Share based payment 1 (2)
30 June 1,543 1,787
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
H1-2024
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
H1-2024
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 six months 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 30 June 2024 and of the results of H+H’s operations and its cash flows for the period 1 January to 30
June 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, 13 August 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
H1-2024
CONDENSED INCOME STATEMENT
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q2 Q2 H1 H1 Full-year
Amounts in DKK million 2024 2023 2024 2023 2023
Revenue 725 731 1,369 1,372 2,672
Cost of goods sold (593 ) (553 ) (1,128 ) (1,040 ) (2,108 )
Gross profit before special items 132 178 241 332 564
Sales costs (28 ) (41 ) (63 ) (78 ) (149 )
Administrative costs (57 ) (57 ) (103 ) (103 ) (197 )
Other operating income and costs, net (6 ) 7 (8 ) 8 26
EBITDA before special items 41 87 67 159 244
Depreciation, amortisation and impairments (46 ) (49 ) (93 ) (100 ) (187 )
EBIT before special items (5 ) 38 (26 ) 59 57
Special items, net (13 ) (165 ) (142 ) (174 ) (287 )
EBIT (18 ) (127 ) (168 ) (115 ) (230 )
Financial income 7 3 11 5 24
Financial expenses (28 ) (15 ) (49 ) (27 ) (77 )
Result before tax (39 ) (139 ) (206 ) (137 ) (283 )
Tax 10 38 47 29 37
Result for the period (29 ) (101 ) (159 ) (108 ) (246 )
Result for the period attributable to:
H+H International A/S' shareholders (28 ) (101 ) (161 ) (108 ) (248 )
Non-controlling interest (1 ) - 2 - 2
Result for the period (29 ) (101 ) (159 ) (108 ) (246 )
Earnings per share (EPS-Basic) (1.7 ) (5.8 ) (9.8 ) (6.2 ) (15.0 )
Diluted earnings per share (EPS-D) (1.7 ) (5.8 ) (9.8 ) (6.2 ) (15.0 )
Group
Q2 Q2 H1 H1 Full-year
Amounts in DKK million 2024 2023 2024 2023 2023
Result for the period (29 ) (101 ) (159 ) (108 ) (246 )
Items that may be reclassified subsequently to profit or loss:
Fair value adjustments of derivative financial instruments - (43 ) (12 ) (43 ) (20 )
Gain/(loss) on derivative financial instruments transferred to the income
statements
Tax on fair value adjustment - - - - 3
Foreign exchange adjustments, foreign entities 2 35 8 42 63
Items that will not be reclassified subsequently to profit or loss:
Actuarial gains and losses 9 (1 ) 28 (46 ) (68 )
Tax on actuarial gains and losses (2 ) (1 ) (6 ) 8 15
Other comprehensive income after tax 12 (10 ) 23 (39 ) 3
Total comprehensive income for the period (17 ) (111 ) (136 ) (147 ) (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
H1-2024
CONDENSED BALANCE SHEET
Group
30 June 31 December 30 June
Amounts in DKK million 2024 2023 2023
ASSETS
Non-current assets
Goodwill 422 422 421
Other intangible assets 224 240 253
Property, plant and equipment 1,791 1,773 1,740
Deferred tax assets 93 31 14
Financial assets 2 2 5
Total non-current assets 2,532 2,468 2,433
Current assets
Inventories 458 657 721
Receivables 269 190 288
Cash 165 139 322
Total current assets 892 986 1,331
TOTAL ASSETS 3,424 3,454 3,764
EQUITY AND LIABILITIES
Equity
Share capital 165 165 165
Retained earnings 1,388 1,526 1,682
Other reserves (98 ) (99 ) (156 )
Equity attributable to H+H International A/S’ shareholders 1,455 1,592 1,691
Equity attributable to non-controlling interests 88 86 96
Total equity 1,543 1,678 1,787
Non-current liabilities
Pension obligations 13 59 55
Provisions 57 31 38
Deferred tax liability 44 54 65
Credit institutions 1,015 907 1,094
Deferred payments, acquisition of subsidiary 92 99 99
Lease liabilities 117 95 78
Total non-current liabilities 1,338 1,245 1,429
Current liabilities
Lease liabilities 26 24 25
Trade payables 271 278 278
Income tax 3 5 10
Deferred payment, acquisition of subsidiary 6 7 7
Provisions 68 7 31
Other payables 169 210 197
Total current liabilities 543 531 548
Total liabilities 1,881 1,776 1,977
TOTAL EQUITY AND LIABILITIES 3,424 3,454 3,764
Net interest-bearing debt 993 887 875
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
H1-2024
CONDENSED CASH FLOW STATEMENT
CONDENSED STATEMENT OF CHANGES IN EQUITY
Q2 Q2 H1 H1
Amounts in DKK million 2024 2023 2024 2023
Operating result (EBIT)
(18 ) (127 ) (168 ) (115 )
Depreciation, amortisation and impairment
Change in working capital
Change in provisions and pension contribution
(45 ) (10 ) 46 (18 )
Other non-cash adjustments
(3 ) 9 1 7
Operating activities before financial items and tax 80 (83 ) 38 (238 )
Financial items, net
(21 ) (12 ) (38 ) (22 )
Income tax paid
(3 ) (21 ) (9 ) (35 )
Operating activities 56 (116 ) (9 ) (295 )
Acquisition of property, plant and equipment and intangible assets (34 ) (45 ) (60 ) (82 )
Investing activities (34 ) (45 ) (60 ) (82 )
Proceeds from borrowings - - - 150
Bank overdraft and other debt (24 ) 271 108 207
Payment of lease liabilities (6 ) (7 ) (16 ) (15 )
Purchase of treasury shares - - - (2 )
Financing activities (30 ) 264 92 340
Total cash flow for the period (8 ) 103 23 (37 )
Cash and cash equivalents, opening 174 218 139 358
Foreign exchange adjustments of cash (1 ) 1 3 1
Cash and cash equivalents at 30 June 165 322 165 322
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 - - (161 ) (161 ) 2 (159 )
Other comprehensive income - (7 ) 8 22 23 - 23
Total comprehensive income - (7 ) 8 (139 ) (138 ) 2 (136 )
Share-based payment - - - 1 1 - 1
Total changes in equity in 2024 - (7 ) 8 (138 ) (137 ) 2 (135 )
Equity at 30 June 2024 165 (14 ) (84 ) 1,388 1,455 88 1,543
Equity at 1 January 2023 175 - (155 ) 1,822 1,842 96 1,938
Total changes in equity
Result for the period - - - (108 ) (108 ) - (108 )
Other comprehensive income - (43 ) 42 (38 ) (39 ) - (39 )
Total comprehensive income - (43 ) 42 (146 ) (147 ) - (147 )
Share-based payment - - - (2 ) (2 ) - (2 )
Purchase of treasury shares - (2 ) (2 ) - (2 )
Share capital decrease (10 ) - 10 - -
Total changes in equity in 2023 (10 ) - 42 (140 ) (151 ) - (151 )
Equity at 30 June 2023 165 (43 ) (113 ) 1,682 1,691 96 1,787
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
H1-2024
NOTES
1. Accounting policies
The interim financial report for the period 1 January to 30 June 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 30 June 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.
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
H1-2024
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 Q2 2024 amounted to DKK 164 million (2023:
DKK 235 million) and DKK 314 million for the first six months of 2024 (2023: DKK 465 million).
Amounts in DKK million Q2 2024 Q2 2023 H1 2024 H1 2023
Revenue 725 731 1,369 1,372
Cost of goods sold (622) (584) (1,187) (1,105)
Gross profit including depreciation and amortisation 103 147 182 267
Sales cost (40) (53) (86) (102)
Administrative costs (62) (63) (114) (114)
Other operating income and costs (6) 7 (8) 8
EBIT before special items (5) 38 (26) 59
Special items, net (13) (165) (142) (174)
EBIT (18) (127) (168) (115)
Depreciation and amortisation comprise:
Depreciation of property, plant and equipment 38 40 64 80
Amortisation of intangible assets 8 9 29 20
Total 46 49 93 100
Depreciation, amortisation and impairment are allocated to:
Production costs 29 31 59 65
Sales costs 12 12 23 24
Administration costs 5 6 11 11
Total 46 49 93 100
Amounts in DKK million 2024 2023 2024 2023
Central Western Europe 268 355 513 700
United Kingdom 247 222 431 368
Poland 210 154 425 304
Total 725 731 1,369 1,372
Q2
H1
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
H1-2024
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 six months of 2024 comprise restructuring costs of DKK 32 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 net pension obligation on 30 June 2024 amounts to DKK 1 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 30 June 2024. The fair value adjustment related to the forward gas contracts with the underlying
hedged item not realised as of 30 June 2024 amounts to DKK 14 million and are recognised in Equity and will be
transferred to the profit & loss statement upon utilisation.
11. Financial resources and cash flow
On 30 June 2024, net interest-bearing debt, totalled DKK 993 million, corresponding to an increase of DKK 106
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, new leases and upgrades of certain plants.
H+H’s financing is subject to usual financial covenants, which have been fulfilled in the first six months of 2024 and
are also expected to be fulfilled for the full year 2024.
SPECIAL ITEMS, NET
Amounts in DKK million Q2 2024 Q2 2023 H1 2024 H1 2023
Impairment of assets, closed down factories - 97 - 97
Restructuring costs 13 46 32 55
Inefficient part of gas hedges, including settlement - 22 110 22
Total 13 165 142 174
Impact of special items on EBIT
Cost of goods sold 1 43 116 48
Sales and administrative costs 12 25 26 29
Depreciation, amortisation and impairments - - - 97
EBIT before special items 13 68 142 174
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
H1-2024
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
H+H has agreed to a conditional sale of land and buildings from its closed factory in Warsaw to Polish residential
developer ROBYG Group for a price of PLN 110 million net of tax (approximately DKK 190 million). The factory was
closed as part of the factory network restructuring program carried out in 2023. The completion of the transaction
is contingent upon a tax ruling and statutory pre-emption rights of the City of Warsaw. Completion is expected to
take place no later than November 2024.
Production at H+H UK Limited’s Borough Green facility was temporarily closed and the plant is now back in
operations and consequently, is being gradually ramped up. Until now and during the coming ramp-up phase the
expected financial loss (EBIT before special items) of the lost production and directly related costs are in the region
of DKK 10-15 million.
Amounts in DKK million Q2 2024 Q2 2023 H1 2024 H1 2023
Current tax (5) (6) (9) (16)
Movement in deferred tax 15 44 56 45
Tax 10 38 47 29