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2014-05-19

Brødrene Hartmann A/S: Hartmann improved operations and profit margin in Q1 2014

Hartmann continued to deliver a positive performance in Q1 2014, lifting both
operating profit and profit margin. Our European earnings grew, while the
profit margin for our North American business fell due to exchange rate
fluctuations and higher energy prices as well as costs related to the ongoing
expansion of our production capacity. We retain our full-year guidance for
2014 of revenue of DKK 1.6-1.7 billion and a profit margin of 9.0-10.5%.

CEO Ulrik Kolding Hartvig says:

"We maintained the positive development in Q1, reporting good results with a
lift in our profit margin through selling more premium products and
continuing our streamlining efforts. The ongoing capacity expansion in North
America is progressing as planned, and in Europe we invested in efficiency
improvements and capacity utilisation."

On Hartmann's outlook, Ulrik Kolding Hartvig says:

"With our results for Q1 and the development of our business, we maintain our
expectations for 2014 of revenue coming to DKK 1.6-1.7 billion and a profit
margin of 9.0-10.5%. We are headed in the right direction and will reach
these targets by further increasing the share of premium products and
optimising operations so as to utilise our capacity in the best possible
way."

Highlights

* Revenue for Q1 2014 was DKK 413 million (2013: DKK 423 million), and
operating profit* was DKK 45 million (2013: DKK 44 million), corresponding
to a profit margin* of 10.8% (2013: 10.3%).
* Europe generated revenue of DKK 341 million for Q1 2014 (2013: DKK 351
million), and operating profit grew to DKK 38 million (2013: DKK 34
million), corresponding to a profit margin of 11.1% (2013: 9.7%). Our
earnings growth in Europe was driven by an increase in the proportion of
premium products and the effects of initiatives implemented to enhance
efficiency.
* Revenue for our North American business was maintained at DKK 72 million
(2013: DKK 72 million), and operating profit was DKK 13 million (2013: DKK
16 million), corresponding to a profit margin of 17.6% (2013: 21.7%). North
America showed a positive business performance, with the decline in
earnings being attributable to exchange rate fluctuations and higher energy
prices as well as costs related to the ongoing expansion of our production
capacity.
* Cash flows from operating activities amounted to a net cash inflow of DKK 9
million (2013: a net cash inflow of DKK 47 million), and the return on
invested capital (ROIC) increased to 23% (2013: 17%).
* We retain our full-year guidance of revenue of DKK 1.6-1.7 billion and a
profit margin of 9.0-10.5%.

* References to operating profit are to operating profit before special items,
and references to profit margin are to profit margin before special items.

For additional information, please contact:

Ulrik Kolding Hartvig
CEO
Tel.: (+45) 45 97 00 79

Interim report Q1 2014
http://hugin.info/2034/R/1786845/613373.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Brødrene Hartmann A/S via Globenewswire

HUG#1786845

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