Interim financial report for H1 2020, including reinstated 2020 outlook

Company announcement No. 395, 2020

“The current market situation has shown the strength of the more diversified geographical footprint H+H has today with three core markets, to better absorb unexpected market developments such as Covid-19”, says CEO Michael T. Andersen. “The UK market was severely hit in Q2 from the lockdown end of March, whereas, the other markets contributed with positive organic growth despite covid-19. Our Q2 results are positively supported by strict pricing strategies in Germany and Poland and a strong operating cash flow.”

Financial highlights for the period 1 January to 30 June 2020

DKK million	Q2 2020	Q2 2019	H1 2020	H1 2019
Revenue	596	770	1.300	1.436
Organic growth	(22)%	7%	(11)%	13%
Organic growth excluding the UK market	2%	5%	7%	8%
EBITDA before special items	104	156	234	253
EBIT before special items	57	114	142	169
EBIT margin before special items	10%	15%	11%	12%
NIBD/EBITDA ratio before special items ratio	0.8	1.2	0.8	1.2
Special items	0	0	0	0
Free cash flow	108	86	30	39

 

 

 

 

 

 

 

 

Trading update

• Following measures taken by the UK Government on 23 March 2020 distribution centres and building sites closed in the UK
• H+H halted UK production beginning of April as stock levels were high and demand limited. Governmental support programs for employees on furlough have been utilized in the period
• At the beginning of May, house builders and builder’s merchants in the UK initiated a phased reopening of building sites and distribution centres
• In early June, all Housebuilders’ sales centres and merchants opened and in the end of June, H+H started production again to facilitate the increasing demand. In early August all three factories were running  
• H+H UK was severely hit in Q2 2020 with very limited actively in April. Coming from a low level, sales volumes increased throughout the quarter and continued the trend in July, showing a recovery of the market. As of July, most building construction sites are being reported as open and productivity levels increased as distancing rules are softening
• The German market performed better than initial expectations and above last year and continued the performance in July despite Covid-19
• The Polish market performed slightly below an extraordinary high activity level in 2019, driven by increased competition on the CSU market but partly offset by good performance in AAC

Outlook for 2020