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H+H International A/S's 2024 Financial Results and Insights for 2025

H+H International A/S recently announced its financial results for the year 2024 and shared an optimistic outlook for 2025, as articulated by CEO Jörg Brinkmann. Under his leadership, the company has undergone significant transformations over the past two years, making strides to become a stronger and more resilient entity capable of future growth.

Brinkmann highlighted that decisive actions, such as streamlining operations and reinforcing their German business, along with innovations like the HOME initiative, have been pivotal in enhancing operational efficiency. He remarked, “We are making the necessary adjustments that will bolster our position in the market, although full recovery may take some time.” The results reflect a significant year-on-year improvement, which is encouraging for stakeholders.

Key Financial Highlights for 2024

• - Sales Volume: The sales volume has shown an increase, reaching 2,967 thousand cubic meters compared to 2,745 thousand cubic meters in 2023.
• - Total Revenue: Revenue rose to DKK 2,747 million, up from DKK 2,672 million the previous year.
• - Gross Margin: The gross margin before special items stands at an impressive 21%, consistent with last year's performance.
• - EBITDA Margin: EBITDA margin has improved significantly to 9%, reflecting healthy operational effectiveness.
• - Free Cash Flow: The company generated a notable free cash flow of DKK 219 million, a stark improvement from a negative free cash flow of DKK 346 million in 2023.

The improvements are indicative of H+H's commitment to repositioning itself in the face of challenging market conditions, particularly highlighting enhancements in operational efficiencies and cost management strategies.

Outlook for 2025

Looking ahead, H+H projects revenue growth of 5% to 10% in local currencies for 2025. The anticipated EBIT before special items is expected to range from DKK 120 million to DKK 180 million.

However, the outlook takes into consideration several external factors:

• - Market Growth: Modest volume growth is expected primarily in the UK, but the outlook does not hinge on a market recovery in Germany.
• - Cost Adjustments: Price increases will be aligned with cost inflation, a strategy aimed at sustaining profitability amidst rising expenses.
• - Cost Discipline: The emphasis remains on exercising price discipline in key markets to maintain competitive positioning and financial integrity.
• - Macro-Economic Factors: The company acknowledges an uncertain macroeconomic and geopolitical environment that may impact overall performance.

Management will also focus on significant capital expenditures, projected at around DKK 200 million, to bolster future operational capabilities.

Q4/FY 2024 Conference Call

As part of the annual report release, H+H International is hosting a conference call aimed at investors and analysts on March 5, 2025. This event will allow stakeholders to gain deeper insights into the company's performance and engage in a Q&A session following the presentation.

Both the annual report for 2024 and other governance documents have been made available on H+H’s official website, providing transparency and comprehensive insights into the company's operational strategies and financial pathways.

Conclusion

H+H International A/S has exhibited resilience and growth in its latest financial results, with a clear strategy for moving forward into 2025. As the company continues to navigate challenges in the global market, its focus on strategic adjustments and operational efficiency will be crucial in securing a robust position within the industry. Investors and stakeholders will likely keep a watchful eye on the forecasts provided and the effectiveness of the ongoing initiatives in the upcoming year.