Q1 2025 H+H International A/S Earnings Call Transcript
Key Points
- H+H International AS (FRA:J0H) reported that all key performance indicators have developed positively compared to the previous year, indicating an overall improvement in business stability.
- The UK market is showing signs of recovery with increased new build activity, leading to higher sales volumes and an optimistic mid-term trend.
- Poland remains a stable market with strong fundamentals, contributing positively to the group's results despite a slight decline in organic growth compared to the previous year.
- The company is shifting its focus from restructuring to profitable growth, emphasizing efficiency in plant networks and capacity to meet rising demand.
- H+H International AS maintains its financial guidance for 2025, expecting organic growth of 5% to 10% and EBIT before special items in the range of DKK120 million to DKK180 million.
- The German market remains challenging with low building activity and no immediate signs of recovery, impacting overall business efficiency.
- The ramp-up of capacity in the UK is causing inefficiencies and higher costs, affecting the gross margin negatively.
- Cash flow from operating activities was negative in Q1 2025, impacted by a negative development in working capital and payouts related to special items from 2024.
- The company faces challenges in maintaining optimal production and distribution patterns in the UK, leading to increased costs.
- There is uncertainty regarding the timing and impact of potential government initiatives in Germany to stimulate the housing market.
Welcome to H+H International Q1 2025 financial results presentation. Today's call is being recorded. (Operator Instructions) I will now turn the call over to your speakers. Please begin.
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Yes. Thank you, and good morning, and welcome to H+H conference call for the first quarter of '25. My name is Niclas and I'm the Head of Investor Relations and Treasury. Joining me this morning is our CEO, Joerg Brinkmann; and our CFO, Bjarne Pedersen. Yesterday evening, interim financial report and supporting documents, including the presentation for this call was published and uploaded to our Investor Relations website.
During today's call, management will present the Q1 financial report, after which there will be a Q&A session. This call is scheduled to last a maximum of 1 hour. Please note that this conference call is also being recorded and will be made available on our Investor Relations website after the call.
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