Annual report 2014: Accelerating growth

Hartmann delivered on the expectations for 2014, lifting both revenue and profit margin. The development was driven by increased sales of retail packaging across Hartmann's markets and by a positive effect of the capacity expansion in North America. Based on good results in 2014, expansion in North America and acquisition of South American activities in early 2015, we are launching the strategy 'Unpacking our potential' along with new financial targets for 2017.

CEO Ulrik Kolding Hartvig says: "2014 was a good year for Hartmann with increased sales of retail packaging and good results in both Europe and North America. Q4 turned out to be both historically strong and a milestone in Hartmann's development, with the expansion of production capacity in North America taking effect and the acquisition of South America's leading manufacturer of moulded-fibre packaging, effective from the start of 2015."

"Based on our expansion in the Americas, we are launching 'Unpacking our potential', Hartmann's new strategy for enhancing our efficiency and accelerating growth in the years ahead. In 2015, we expect revenue of DKK 2.0-2.1 billion and a profit margin of 10-11.5%. By the end of 2017, we intend to further lift revenue to DKK 2.2-2.4 billion and the profit margin to 12-14%."

Q4 2014

Total revenue came to DKK 478 million (2013: DKK 410 million), with operating profit*up at DKK 75 million (2013: DKK 44 million), corresponding to a profit margin* of 15.8% (2013: 10.8%).
In Europe, revenue grew to DKK 377 million (2013: DKK 337 million) and operating profit to DKK 57 million (2013: DKK 37 million), corresponding to a profit margin of 15.1% (2013: 10.8%). The positive development was driven by sales growth
In North America, revenue grew to DKK 100 million (2013: DKK 73 million) and operating profit to DKK 25 million (2013: DKK 14 million), corresponding to a profit margin of 25.2% (2013: 18.9%). The progress is attributable to increased sales and a higher proportion of premium products, just as the currency development contributed favourably.

2014

Hartmann's total revenue came to DKK 1,615 million in 2014 (2013: DKK 1,579 million), and operating profit grew to DKK 163 million (2013: DKK 148 million), corresponding to a profit margin of 10.1% (2013: 9.4%). Return on invested capital was 22.3% (2013: 23.0%).
The Board of Directors proposes dividends of DKK 9.50 per share (2013: DKK 9.50).
In Europe, revenue grew to DKK 1,296 million (2013: DKK 1,287) and operating profit to DKK 128 million (2013: 109 million), corresponding to a profit margin of 9.9% (2013: 8.5%).
In North America, revenue grew to DKK 319 million (2013: DKK 292 million) with operating profit at DKK 60 million (2013: DKK 63 million), corresponding to a profit margin of 18.7% (2013: 21.6%).

Outlook for 2015 and financial targets for 2017

In 2015, revenue is expected to be DKK 2.0-2.1billion and the profit margin 10-11.5%.
In 2017, revenue will reach DKK 2.2-2.4 billion and the profit margin 12-14%.

On Tuesday 10 March 2015 at 9.00 (CET), Hartmann will host a conference call at which CEO Ulrik Kolding Hartvig and CFO Marianne Rørslev Bock will review the financial results, the outlook and answer questions. Registration is not required. The conference call will be conducted in English and can be heard live at investor.hartmann-packaging.com, where relevant telephone numbers and the accompanying presentation will be available.

For further information, please contact:

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

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

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