#Denmark #Copenhagen #H+H International #Jörg Brinkmann #UK Housing Market

H+H International A/S Q1 2025 Financial Report

H+H International A/S has released its interim financial report for the first quarter of 2025, showcasing a steady start to the year in alignment with expectations. CEO Jörg Brinkmann highlighted the company's positive trajectory, particularly in the UK housing market, which has exhibited significant momentum. The company is positioning itself to meet escalating long-term demand by enhancing its capacity within the UK. Furthermore, Brinkmann anticipates realizing the full benefits of these strategic changes by the latter half of the year.

In discussing other markets, Brinkmann noted that while Poland's underlying fundamentals remain robust, the company faced challenges in volume comparisons with a strong Q1 from the previous year. The German market, however, presents persistent hurdles. The CEO expressed a cautious optimism, attributing potential improvements to how the newly elected German government may implement regulatory changes and financial support aimed at rejuvenating the new-build sector.

The financial performance metrics for the first quarter are noteworthy:

• - Organic Revenue Growth: The company observed a 3% growth in local currencies, reversing a 4% contraction from last year.
• - Sales Volume: A slight decrease of 2% was recorded, mainly attributed to the situations in Poland and Germany, which was partially counterbalanced by the UK performance.
• - Gross Profit: Before special items, gross profit surged to DKK 146 million, compared to DKK 109 million in Q1 2024, leading to a gross margin improvement from 17% to 22%. This progression can be traced back to increased sales prices coupled with normalized input costs.
• - EBIT: The earnings before interest and taxes stood at DKK 16 million, recovering from a previously reported negative DKK 21 million, translating to a margin improvement from negative 3% to 2%.
• - Gearing Ratio: By the conclusion of Q1 2025, financial gearing was recorded at 2.7 times EBITDA, a significant reduction from 5.1 times the previous year, showcasing improvements in financial health.

Looking ahead, H+H International has maintained its financial outlook for 2025. The company anticipates organic revenue growth between 5% and 10%. Moreover, the EBIT before special items is projected to fall within the DKK 120 million to DKK 180 million range.

To facilitate further understanding of these financial results, H+H International has arranged a dedicated conference call for investors and analysts set for May 21, 2025, at 10:00 a.m. CEST. This session will provide participants with the opportunity to dive deeper into the company’s quarterly performance and future trajectory, followed by a Q&A segment.

Those interested can join the conference call via live webcast or dial in directly, using the respective regional numbers provided in their release. For expanded inquiries, Niclas Bo Kristensen, Head of Investor Relations, is available for contact.

In conclusion, H+H International A/S is navigating through challenging yet promising waters in its markets, laying the groundwork for future growth and stability despite current market headwinds. The strategic focus on enhancing productivity and meeting consumer demands could put the company on a path to fulfilling its yearly performance targets.