DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 1/14
Interim financial report
Q3-2024
Company announcement No. 569, 2024 19 November 2024
Interim Financial Report, Q3 2024
CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE
“Overall, I am very pleased with our Q3 performance. Our gross margin improved to 24%, better reflecting the
underlying performance of the business and our restructuring program over the last two years. On top of this
Poland and the UK markets are slowly improving building activity. Consequently, we are increasing output from
the plant network and have successfully completed the re-opening of our UK plant in Pollington. Another key
highlight of the quarter was the successful completion of the sale of the closed down plant in Warsaw, which
brings our financial gearing closer to our long-term target.” says CEO Jörg Brinkmann.
PERFORMANCE HIGHLIGHTS FOR Q3 2024 (Q3 2023)
▪ Sales volume increased by 5% driven by growth in the UK and Poland, offset by the German market, which
is weaker than last year.
▪ Revenue growth measured in local currencies (“organic growth”) was 2% (negative 24%).
▪ Gross profit before special items was DKK 174 million (DKK 138 million), corresponding to a gross margin
of 24% (20%). The increase is driven by higher sales prices, normalised gas costs and adversely impacted
by some de-stocking and the stand-still of the Borough Green plant in July.
▪ EBIT before special items was DKK 53 million (DKK 13 million), corresponding to an EBIT margin before
special items of 7% (2%).
▪ Financial gearing was 4.4 times EBITDA before special items at the end of Q3 2024 (2.6 times EBITDA at
the end of Q3 2023).
OTHER KEY EVENTS
▪ Sale of closed down plant in Warsaw for PLN 110 million completed after the balance sheet date. We
expect our year-end financial gearing to be around 3 times EBITDA before special items.
▪ Re-opening of Pollington 1 in the UK completed.
UPDATED FINANCIAL OUTLOOK FOR 2024
▪ Revenue growth measured in local currencies is expected to around 0% (Unchanged).
▪ EBIT before special items is expected to be in the range of DKK million 50 to 80 (from 50 to 100).
Q3 2024 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the Q3 2024 Interim Financial Report, a conference call for investors and analysts
is scheduled for Wednesday 20 November 2024, at 10:00 p.m. CET. The presentation will be followed by a Q&A
session. Participants can follow the conference call via live webcast here.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 2/14
Interim financial report
Q3-2024
KEY FIGURES – H+H GROUP
Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts.
FORWARD-LOOKING STATEMENTS
The Interim Financial Report contains forward-looking statements. Such statements are subject to risks and
uncertainties, as various factors, many of which are beyond the control of H+H, may cause actual developments
and results to differ materially from the expectations expressed in this document.
In no event shall H+H be liable for any direct, indirect, or consequential damages or any other damages
whatsoever resulting from loss of use, data, or profits, whether in an action of contract, negligence, or other action
arising out of or in connection with the use of information in this document.
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2024 2023 2024 2023 2023
Income statement
Revenue 729 699 2,098 2,071 2,672
Gross profit before special items 174 138 415 470 564
EBITDA before special items 101 53 168 212 244
EBITDA 92 23 17 105 58
EBIT before special items 53 13 27 72 57
EBIT 44 (19) (124) (134) (230)
Result before tax 26 (35) (180) (172) (283)
Result for the period 19 (29) (140) (137) (246)
Balance sheet
Assets 3,435 3,615 3,435 3,615 3,454
Invested capital 2,242 2,405 2,242 2,405 2,435
Net working capital 212 437 212 437 359
Equity 1,546 1,760 1,546 1,760 1,678
Net Interest-bearing debt (NIBD) 887 844 887 844 887
Cash flow
Cash flow from operating activities 135 87 126 (208) (209)
Cash flow from investing activities (13) (33) (73) (115) (137)
Free cash flow 122 54 53 (323) (346)
Cash flow from financing activities (32) (129) 60 211 131
Financial ratios
Organic growth 2% (24)% (1)% (25)% (25)%
Gross margin before special items 24% 20% 20% 23% 21%
EBITDA margin before special items 14% 8% 8% 10% 9%
EBITDA margin 13% 3% 1% 5% 2%
EBIT margin before special items 7% 2% 1% 3% 2%
EBIT margin 6% (3)% (6)% (6)% (9)%
Return on invested capital (ROIC) (excl. Goodwill) (11)% (4)% (11)% (4)% (9)%
Solvency ratio 42% 46% 42% 46% 46%
Financial gearing before special items ratio 4.4x 2.6x 4.4x 2.6x 3.6x
Share data
Share price, end of period (DKK) 92 71 92 71 89
Book value per share, end of period (DKK) 94 107 94 107 102
Earnings per share 1.0 (1.8) (8.7) (8.4) (15.0)
Diluted earnings per share 1.0 (1.8) (8.7) (8.4) (15.0)
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 3/14
Interim financial report
Q3-2024
MANAGEMENT’S REVIEW
CURRENT BUSINESS DEVELOPMENT
Volumes and prices
Sales volumes grew by 5% in quarter compared to
the same period last year, and we achieved 2%
organic growth. This was partly driven by country
mix of -3% and positive price growth of 1%.
The markets in Poland and the UK continued a
positive trend and in particular Poland saw a strong
volume development. In contrast, Germany
continues to go backwards and show no indications
of recovery in the short to mid term.
The price development remained stable. In
Germany, list price increases were announced during
the quarter. In Poland, prices are in line with
previous quarter which is higher than third quarter
last year.
Regional market development
UK
In the UK, building registrations have shown signs of
improvement throughout the year, though growth
has been from a low starting point. Mortgage
approvals have risen, a positive trend influenced by
recent interest rate cuts. Despite being below pre-
pandemic levels, these approvals are significantly
higher than last year. Consumer confidence has
improved from late 2023, with optimism supported
by lower interest rates and the new Labour
government which has the country's ongoing
housing shortage on their agenda. The Autumn
Budget did not reveal any specific new programs to
address the country’s housing shortage.
Poland
In Poland, the building market shows strong growth
in developer permits and project starts, while
individual housing growth remains moderate.
Mortgage demand has slowed significantly following
the end of the "2% Safe Credit" program, though
levels remain above pre-program figures. No new
mortgages are being processed under the previous
program. A potential successor program, "Kredyt na
Start / Loan for Start," is currently under discussion,
with timing details yet to be determined.
Germany
The construction industry in Germany continues to
operate on low activity levels. With the economy in
recession since the first quarter of 2023 and rising
building costs new residential construction has been
hit hard and there is a sharp decline in building
permits. General election is set for February 2025.
OTHER KEY EVENTS
Sale of the closed down plant in Warsaw completed
After the balance sheet date, the conditions for the
sale of the closed down plan in Warsaw to a Polish
residential developer (as announced in a press
release on 29 October 2024) have been fulfilled and
the sale is therefore final.
The sales price of PLN 110 million (approximately
DKK 190 million) have been paid in cash in October
and the gain will be classified as special items in the
fourth quarter, having no impact on the full-year
financial outlook. We expect our year-end financial
gearing to be around 3 times EBITDA before special
items.
To ensure efficient service and timely deliveries in
the future, we maintain a strategically located
logistics hub near Warsaw.
Re-opening of Pollington 1 in the UK completed
The re-opening of our Pollington plant has been
completed. The re-opening will provide us with
additional capacity to support our partners in the UK
market.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 4/14
Interim financial report
Q3-2024
INCOME STATEMENT FOR THE THIRD QUARTER OF
2024
Revenue
Total revenue amounted to DKK 729 million for Q3
2024 which is an increase of DKK 30 million
compared to Q3 2023 (DKK 699 million).
Revenue growth measured in local currencies
(“organic growth”) was positive 2% in Q3 2024
compared to negative 24% in Q3 2023.
Revenue in the CWE region decreased by 9% to DKK
271 million compared to DKK 299 million in Q3 2023.
Organic growth in the region was negative 9% as a
result of lower sales volumes and slightly higher
prices vs. same period last year.
Revenue in the United Kingdom increased by 4% to
DKK 234 million compared to DKK 226 million in Q3
2023. Organic growth of 2% in Q3 2024 was driven
by higher volumes partly offset by lower prices vs.
same period last year.
Sales in Poland continued to be strong in Q3 2024
and revenue increased by 29% to DKK 224 million
compared to DKK 174 million in Q3 2023. Organic
growth was 21% driven by both higher volumes and
prices compared to same period as last year.
Gross profit before special items
Gross profit amounted to DKK 174 million compared
to DKK 138 million in Q3 2023, corresponding to
gross margins of 24% and 20%, respectively.
Gross margin is driven by higher sales prices and
normalised gas costs vs. last year. Further, the
margin in the quarter was adversely impacted by
some de-stocking and the stand-still of the Borough
Green plant in July.
EBITDA before special items
EBITDA before special items amounted to DKK 101
million compared to DKK 53 million in Q3 2023,
corresponding to EBITDA before special items
margins of 14% and 8%, respectively.
Depreciation and amortisation
Depreciation and amortisation in Q3 2024 amounted
to DKK 48 million compared to DKK 40 million in Q3
2023 due to plant upgrades completed during 2024.
EBIT before special items
EBIT before special items amounted to DKK 53
million in Q3 2024, compared to DKK 13 million in Q3
2023, corresponding to EBIT margins before special
items of 7% and 2%, respectively.
Special items
Special items of DKK 9 million for Q3 2024 relates to
restructuring costs. Please refer to Note 8 for more
information about special items for the period.
Net financials
Net financials amount to an expense of DKK 18
million in Q3 2024, compared to an expense of DKK
16 million in Q3 2023. The development is driven by
increase in interest expenses from an increased debt
position and higher increased interest rates during
the period
Result before tax
Result before tax amounted to DKK 26 million in Q3
2024, compared to negative DKK 35 million in Q3
2023.
Tax
Tax for Q3 2024 amounted to a net expense of DKK 7
million compared to a net income of DKK 6 million in
Q3 2023.
Result for the period
Result for the period amount to DKK 19 million and
is attributable to H+H International A/S’
shareholders by DKK 17 million and to non-
controlling interests by DKK 2 million compared to a
loss of DKK 29 million in Q3 2023, allocated with a
loss of DKK 30 million and income of DKK 1 million,
respectively.
Comprehensive income
Other comprehensive income for Q3 2024 amounted
to a loss of DKK 16 million compared to a profit of
DKK 2 million in Q3 2023. The year-on-year
development was mainly driven by actuarial gains
offset by the fair value adjustment recognised in
2023.
Revenue, external
Amounts in DKK million 2024 2023 2024 2023
Central Western Europe 271 299 784 999
United Kingdom 234 226 665 594
Poland 224 174 649 478
Total 729 699 2,098 2,071
Q3
Q1-Q3
Revenue
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 5/14
Interim financial report
Q3-2024
INCOME STATEMENT FOR THE FIRST NINE MONTHS
OF 2024
Revenue
Total revenue for the first nine months of 2024
amounts to DKK 2,098 million compared to DKK
2,071 million in the first nine months of 2023.
Organic growth was negative 1% in the first nine
months of 2024 compared to negative 25% for the
first nine months of 2023.
Gross profit before special items
Gross profit in the first nine months of 2024
amounted to DKK 415 million compared to DKK 470
million in 2023, corresponding to gross margins of
20% and 23%, respectively. The decrease in gross
margin is driven by de-stocking and excess gas costs
in H1 2024 partly off-set by the positive
development in Q3 2024.
EBITDA before special items
EBITDA before special items in the first nine months
amounted to DKK 168 million compared to DKK 212
million in 2023, corresponding to EBITDA margins of
8% and 10%, respectively.
Depreciation and amortisation
Depreciation and amortisation in the first nine
months of 2024 amounted to DKK 141 million
compared to DKK 140 million in first nine months of
2023.
EBIT before special items
EBIT before special items amounted to DKK 27
million for the first nine months of 2024, compared
to DKK 72 million the first nine months of 2023,
corresponding to margins of 1% and 3%,
respectively.
Special items
Special items of DKK 151 million for the first nine
months in 2024 relate to settlement of gas hedges of
DKK 110 million and restructuring costs of DKK 41
million. Please refer to Note 8 for more information
about special items for the period.
Net financials
Net financials amounted to an expense of DKK 56
million in first nine months 2024, compared to an
expense of DKK 38 million in first nine months of
2023. The development is driven by increase in
interest expenses from an increased debt position
and higher increased interest rates during the
period.
Result before tax
Result before tax for the first nine months of 2024
amounted to a loss of DKK 180 million, compared to
a loss of DKK 172 million in first nine months of
2023.
Tax
Tax for the period amounted to a net income of DKK
40 million compared to a net income of DKK 35
million in first nine months of 2023.
Result for the period
Result for the first nine months of 2024 decreased by
DKK 3 million to a loss of DKK 140 million, compared
to a loss of DKK 137 million in 2023.
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 144 million
and a profit to non-controlling interest by DKK 4
million compared to a loss of DKK 138 million and
DKK 1 million, respectively, for the first nine months
of 2023.
Comprehensive income
Other comprehensive income for the first nine
months of 2024 was positive DKK 8 million compared
to negative DKK 37 million for the first nine months
of 2023. The positive development is mainly due to
negative fair value adjustments of derivatives and
actuarial losses in 2023.
CASH FLOW
Operating activities
Cash flow from operating activities before financial
items and tax amounted to DKK 170 million in Q3
2024 compared to DKK 107 million in Q3 2023.
Cash flow from operating activities before financial
items and tax in the first nine months of 2024 was
DKK 208 million compared to cash out-flow of DKK
131 million in 2023. The improvement is mainly
driven by a de-stocking in 2024 versus a stock build-
up in 2023.
Investing activities
Cash flow from investing activities in Q3 2024
amounted to a cash out-flow of DKK 13 million
compared to a cash out-flow DKK 33 million in Q3
2023.
Cash flow from investing activities in first nine
months of 2024 was a cash out-flow DKK 73 million,
compared to a cash out-flow of DKK 115 million in
2023.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 6/14
Interim financial report
Q3-2024
Financing activities
Cash flow from financing activities were a cash out-
flow of DKK 32 million in the third quarter of 2024
compared to a cash out-flow of DKK 129 million in
Q3 2023.
Cash in-flow from financing activities in the first 9
months amounted to DKK 60 million compared to a
cash in-flow of DKK 211 million in 2023 where H+H
drew on credit facilities, due to the development in
earnings and working capital.
BALANCE SHEET
On 30 September 2024, the balance sheet total
amounted to DKK 3,435 million compared to DKK
3,615 million on 30 September 2023 mainly driven
by a decrease in inventories of DKK 293 million.
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 887
million as of 30 September 2024 which is on par with
31 December 2023.
Equity
The consolidated equity decreased by DKK 132
million compared to 31 December 2023 and
decreased by DKK 214 million compared to 30
September 2023.
MOST MATERIAL RISKS AND
UNCERTAINTIES
For most material risk and uncertainties, please refer
to Note 3 “Risks Management” and to Note 4
“Significant accounting estimates and judgements”.
EVENTS AFTER THE BALANCE SHEET DATE
After the balance sheet date, the conditions for the
sale of the closed down plant in Warsaw to a Polish
residential developer (as announced in a press
release on 29 October 2024) have been fulfilled and
the sale is therefore final. The assets and related
liabilities have been presented as assets held for
sale.
No other events have occurred after the balance
sheet date that will have a material effect on the
H+H Groups financial position.
UPDATED FINANCIAL OUTLOOK FOR 2024
▪ Revenue growth measured in local currencies
is expected to be around 0% (Unchanged).
▪ EBIT before special items is expected to be in
the range of DKK 50 million to DKK 80 million
(from DKK 50-100 million).
ASSUMPTIONS FOR THE FINANCIAL OUTLOOK
Specific assumptions
The expectations for H+H’s financial performance in
2024 are based on certain specific and general
assumptions. Management believes that the most
significant of these assumptions relate to the
following items:
▪ Building activity in line with 2023 level
▪ Price discipline maintained in our key markets
▪ Exchange rates, primarily GBP, EUR and PLN
remain at mid-November 2024 levels
General assumptions
The expectations for H+H’s financial performance
are also based on certain general assumptions.
Management believes that the most significant
assumptions underlying H+H’s expectations relate
to:
▪ sales volumes and product mix;
▪ price competition;
▪ developments in the market for building
materials;
▪ distribution factors;
▪ weather conditions;
▪ macro-economic and geopolitical
developments; and
▪ operational uptime at H+H’s production
plants, including the supply of relevant energy
and raw materials.
FINANCIAL CALENDAR 2024
2024 Annual Report
4 Mar 2025
2024 Annual General Meeting
8 Apr 2025
Q1 2025 Interim Financial Report
20 May 2025
H1 2025 Interim Financial Report
14 Aug 2025
Q3 2025 Interim Financial Report
11 Nov 2025
Equity
Q1-Q3 Q1-Q3
Amounts in DKK million 2024 2023
1 January 1,678 1,938
Result for the period (142) (137)
Actuarial gains/losses on pension
plans
7 (41)
Value adjustments of derivative
financial instruments
(4) (17)
Foreign exchange adjustments 5 21
Purchase of treasury shares - (2)
Share based payment 2 (2)
30 September 1,546 1,760
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 7/14
Interim financial report
Q3-2024
STATEMENT BY THE EXECUTIVE BOARD AND THE BOARD OF DIRECTORS
The Executive Board and the Board of Directors have today discussed and approved the interim financial report for
H+H International A/S for the first nine months of 2024.
The interim financial report, which has not been audited or reviewed by H+H’s auditors, has been prepared in
accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and the Danish disclosure
requirements for the interim financial reports of listed companies.
It is our opinion that the interim financial report gives a true and fair view of H+H’s assets, liabilities, and financial
position on 30 September 2024 and of the results of H+H’s operations and its cash flows for the period 1 January
to 30 September 2024.
Furthermore, it is our opinion that management’s review provides a fair account of developments in H+H’s
operations and financial conditions, the results for the period and H+H’s overall financial position, as well as a
description of the most significant risks and uncertainties that H+H faces.
Copenhagen, 19 November 2024
EXECUTIVE BOARD
Jörg Brinkmann
CEO
Bjarne Pedersen
CFO
BOARD OF DIRECTORS
Kent Arentoft
Chair
Jens-Peter Saul
Vice chair
Stewart Antony Baseley
Volker Christmann
Kajsa von Geijer
Miguel Kohlmann
Helen MacPhee
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 8/14
Interim financial report
Q3-2024
CONDENSED INCOME STATEMENT
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2024 2023 2024 2023 2023
Revenue 729 699 2,098 2,071 2,672
Cost of goods sold (555 ) (561 ) (1,683 ) (1,601 ) (2,108 )
Gross profit before special items 174 138 415 470 564
Sales costs (29 ) (37 ) (92 ) (115 ) (149 )
Administrative costs (53 ) (46 ) (156 ) (149 ) (197 )
Other operating income and costs, net 9 (2 ) 1 6 26
EBITDA before special items 101 53 168 212 244
Depreciation, amortisation and impairments (48 ) (40 ) (141 ) (140 ) (187 )
EBIT before special items 53 13 27 72 57
Special items, net (9 ) (32 ) (151 ) (206 ) (287 )
EBIT 44 (19 ) (124 ) (134 ) (230 )
Financial income 6 1 17 6 24
Financial expenses (24 ) (17 ) (73 ) (44 ) (77 )
Result before tax 26 (35 ) (180 ) (172 ) (283 )
Tax (7 ) 6 40 35 37
Result for the period 19 (29) (140) (137) (246)
Result for the period attributable to:
H+H International A/S' shareholders 17 (30 ) (144 ) (138 ) (248 )
Non-controlling interest 2 1 4 1 2
Result for the period 19 (29 ) (140 ) (137 ) (246 )
Earnings per share (EPS-Basic) 1.0 (1.8 ) (8.7 ) (8.4 ) (15.0 )
Diluted earnings per share (EPS-D) 1.0 (1.8 ) (8.7 ) (8.4 ) (15.0 )
Group
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2024 2023 2024 2023 2023
Result for the period 19 (29 ) (140 ) (137 ) (246 )
Items that may be reclassified subsequently to profit or loss:
Fair value adjustments of derivative financial instruments - 18 (12 ) (25 ) (20 )
Gain/(loss) on derivative financial instruments transferred to the income
statements
Tax on fair value adjustment - - - - 3
Foreign exchange adjustments, foreign entities (3 ) (21 ) 5 21 63
Items that will not be reclassified subsequently to profit or loss:
Actuarial gains and losses (20 ) (1 ) 9 (47 ) (68 )
Tax on actuarial gains and losses 4 (2 ) (2 ) 6 15
(16 ) (3 ) 7 (41 ) (53 )
Other comprehensive income after tax (16 ) 2 8 (37 ) 3
Total comprehensive income for the period 3 (27 ) (132 ) (174 ) (243 )
Group
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 9/14
Interim financial report
Q3-2024
CONDENSED BALANCE SHEET
Group
30 September 31 December 30 September
Amounts in DKK million 2024 2023 2023
ASSETS
Non-current assets
Goodwill 422 422 420
Other intangible assets 227 240 248
Property, plant and equipment 1,696 1,773 1,739
Deferred tax assets 83 31 15
Financial assets 2 2 5
Total non-current assets 2,430 2,468 2,427
Current assets
Inventories 395 657 688
Receivables 286 190 253
Cash 249 139 247
Total current assets 930 986 1,188
Assets classified as held for sale 75 - -
TOTAL ASSETS 3,435 3,454 3,615
EQUITY AND LIABILITIES
Equity
Share capital 165 165 165
Retained earnings 1,391 1,526 1,649
Other reserves (98 ) (99 ) (151 )
Equity attributable to H+H International A/S’ shareholders 1,458 1,592 1,663
Equity attributable to non-controlling interests 88 86 97
Total equity 1,546 1,678 1,760
Non-current liabilities
Pension obligations 24 59 47
Provisions 46 31 38
Deferred tax liability 44 54 64
Credit institutions 994 907 978
Deferred payments, acquisition of subsidiary 93 99 99
Lease liabilities 70 95 88
Total non-current liabilities 1,271 1,245 1,314
Current liabilities
Lease liabilities 26 24 25
Trade payables 274 278 340
Income tax 2 5 1
Deferred payment, acquisition of subsidiary 6 7 7
Provisions 69 7 4
Other payables 195 210 164
Total current liabilities 572 531 541
Total liabilities 1,843 1,776 1,855
Liabilities related to assets classified as held for sale 46 - -
TOTAL EQUITY AND LIABILITIES 3,435 3,454 3,615
Net interest-bearing debt 887 887 844
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 10/14
Interim financial report
Q3-2024
CONDENSED CASH FLOW STATEMENT
CONDENSED STATEMENT OF CHANGES IN EQUITY
Q3 Q3 Q1-Q3 Q1-Q3
Amounts in DKK million 2024 2023 2024 2023
Operating result (EBIT)
Depreciation, amortisation and impairment
Change in working capital
Change in provisions and pension contribution
Other non-cash adjustments
Operating activities before financial items and tax 170 107 208 (131 )
Financial items, net
(18 ) (16 ) (56 ) (38 )
Income tax paid
(17 ) (4 ) (26 ) (39 )
Operating activities 135 87 126 (208 )
Acquisition of property, plant and equipment and intangible assets (13 ) (33 ) (73 ) (115 )
Investing activities (13 ) (33 ) (73 ) (115 )
Proceeds from borrowings - - - 150
Bank overdraft and other debt (21 ) (122 ) 87 85
Payment of lease liabilities (11 ) (7 ) (27 ) (22 )
Purchase of treasury shares - - - (2 )
Financing activities (32 ) (129 ) 60 211
Total cash flow for the period 90 (75 ) 113 (112 )
Cash and cash equivalents, opening 165 322 139 358
Foreign exchange adjustments of cash (6 ) - (3 ) 1
Cash and cash equivalents at 30 September 249 247 249 247
Amounts in DKK million
Share
capital
Hedging
reserve
Translation
reserve
Retained
earnings
H+H
shareholders
share
Non con-
trolling
interests’
share
Total
Equity at 1 January 2024 165 (7 ) (92 ) 1,526 1,592 86 1,678
Total changes in equity
Result for the period - - (144 ) (144 ) 2 (142 )
Other comprehensive income - (4 ) 5 7 8 - 8
Total comprehensive income - (4 ) 5 (137 ) (136 ) 2 (134 )
Share-based payment - - - 2 2 - 2
Total changes in equity in 2024 - (4 ) 5 (135 ) (134 ) 2 (132 )
Equity at 30 September 2024 165 (11 ) (87 ) 1,391 1,458 88 1,546
Equity at 1 January 2023 175 - (155 ) 1,822 1,842 96 1,938
Total changes in equity
Result for the period - - - (138 ) (138 ) 1 (137 )
Other comprehensive income - (17 ) 21 (41 ) (37 ) - (37 )
Total comprehensive income - (17 ) 21 (179 ) (175 ) 1 (174 )
Share-based payment - - - (2 ) (2 ) - (2 )
Purchase of treasury shares - (2 ) (2 ) - (2 )
Share capital decrease (10 ) - 10 - -
Total changes in equity in 2023 (10) - 21 (173) (179) 1 (178)
Equity at 30 September 2023 165 (17 ) (134 ) 1,649 1,663 97 1,760
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 11/14
Interim financial report
Q3-2024
NOTES
1. Accounting policies
The interim financial report for the period 1 January to 30 September 2024 has been prepared in accordance with
the IAS 34 “Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for
the interim financial reports of listed companies. The application of IAS 34 means that the disclosures are more
limited than in a complete annual report, but that the interim financial report complies with the recognition and
measurement principles in the International Financial Reporting Standards (IFRS). The interim financial report has
not been reviewed by H+H’s auditors.
The accounting policies are consistent with those applied in the 2023 Annual Report, which includes a full
description of the accounting policies applied, except for the addition mentioned below.
Assets held for sale
Non-current assets and related liabilities are classified as held for sale when it is virtually certain their carrying
amount will be recovered through a sale transaction rather than through continuing use. Non-current assets are
measured at the lower of the carrying amount and fair value less costs to sell. Costs to sell are the incremental
costs directly attributable to the transaction, excluding financial costs and income tax. Property, plant and
equipment, intangible assets and right-of-use assets are not depreciated or amortised once classified as held for
sale. Assets and liabilities held for sale are presented separately as current items in the statement of the financial
position.
2. Adoption of new and revised IFRSs
H+H International A/S has adopted all new or revised and amended International Financial Reporting Standards
(IFRSs) and interpretations (IFRIC) issued by IASB and endorsed by the EU effective for the financial year 2024. It is
assessed that the revisions and amendments have not had a material impact on the consolidated financial
statements.
3. Risk Management
H+H’s principal risks and the external factors that may affect H+H are provided in the 2023 Annual Report. These
are unchanged as of 30 September 2024.
4. Significant accounting estimates and judgements
Determining the carrying amounts of some assets and liabilities requires Management to make judgements,
estimates and assumptions concerning future events. The estimates and assumptions made are based on historical
experience and other factors that are believed by Management to be sound under the circumstances but that, by
their nature, are uncertain and unpredictable. Financial statement items in which more significant accounting
estimates and judgements are applied are listed in Note 2 of the 2023 Annual report for H+H International A/S.
The estimates and assumptions may be incomplete or inaccurate, and unforeseen events or circumstances may
occur. Moreover, the H+H Group is subject to risks and uncertainties that may lead to the actual outcomes vary
from these estimates and assumptions. It may be necessary to change estimates and assumptions made previously
as a result of changes in the factors on which these were based or as a result of new knowledge or subsequent
events.
5. Seasonal fluctuations
The sales pattern for H+H’s products is seasonal. Sales in the second and third quarters are traditionally higher
than during the rest of the year. As a part of H+H’s cost base is not directly variable with revenue, deviations from
projected sales may result in considerable fluctuations in the Company’s earnings.
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 12/14
Interim financial report
Q3-2024
6. Income statement classified by function
The above table shows an extract of the income statement adapted to show depreciation and amortisation
classified by function.
7. Geographical information
When presenting information on geographical areas, information on revenue is based on countries with the
exception of the “Central Western Europe” region which comprises Germany, Switzerland, Denmark, Sweden, the
Czech Republic, Netherlands and Belgium. Revenue for Germany for Q3 2024 amounted to DKK 181 million (2023:
DKK 197 million) and DKK 495 million for the first nine months of 2024 (2023: DKK 662 million).
8. Special items, net
As disclosed in the 2023 annual report H+H decided to settle the remaining gas contracts entered in the summer of
2022. As a consequence, the day one loss, reflecting the loss at the time of falling outside the own-use exemption
has been recognised as special items in Q1 2024 amounting to DKK 93 million. In addition, a loss of gas sold back to
the market in Q1 2024 has been recognised as special items amounting to DKK 17 million.
Other special items for the first nine months of 2024 comprise restructuring costs of DKK 41 million.
Amounts in DKK million Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023
Revenue 729 699 2,098 2,071
Cost of goods sold (585) (585) (1,772) (1,690)
Gross profit including depreciation and amortisation 144 114 326 381
Sales cost (40) (46) (126) (148)
Administrative costs (60) (53) (174) (167)
Other operating income and costs 9 (2) 1 6
EBIT before special items 53 13 27 72
Special items, net (9) (32) (151) (206)
EBIT 44 (19) (124) (134)
Depreciation and amortisation comprise:
Depreciation of property, plant and equipment 37 17 101 97
Amortisation of intangible assets 11 23 40 43
Total 48 40 141 140
Depreciation, amortisation and impairment are allocated to:
Production costs 30 24 89 89
Sales costs 11 9 34 33
Administration costs 7 7 18 18
Total 48 40 141 140
Amounts in DKK million Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023
Central Western Europe 271 299 784 999
United Kingdom 234 226 665 594
Poland 224 174 649 478
729 699 2,098 2,071
Revenue
Amounts in DKK million Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023
Impairment of assets, closed down factories - 2 - 99
Restructuring costs 9 16 41 71
Inefficient part of gas hedges, including settlement - 14 110 36
Total 9 32 151 206
Impact of special items on EBIT
Cost of goods sold - 23 116 79
Sales and administrative costs 9 7 35 28
Depreciation, amortisation and impairments - 2 - 99
EBIT before special items 9 32 151 206
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 13/14
Interim financial report
Q3-2024
9. Assets and liabilities classified as held for sale
H+H has agreed to a conditional sale of its closed down plant in Warsaw and consequently classified these assets
to assets held for sale. In addition, a lease of land relating to the sold assets have been classified as liabilities
relating to assets held for sale.
10. Pension obligations
H+H has defined-benefit pension plans in the UK, Switzerland, and Germany. The UK and Swiss pension plans are
managed by a pension fund to which payments are made, whereas the German pension plan is funded from
current earnings. H+H’s pension obligations predominantly relate to the plans in the UK.
For interim periods, H+H’s defined-benefit pension obligations are based on valuations from external actuaries
carried out at the end of prior financial year considering any subsequent movements in the obligation due to
pension costs, contributions etc. up until the reporting date. Actuarial calculations are updated or extrapolated
quarterly.
The net pension obligation on 30 September 2024 amounts to DKK 24 million, compared to DKK 47 million on 31
December 2023. The decrease is driven by payments, interest, value adjustment and currency adjustment.
11. Derivative financial instruments
In Q1 2024, H+H settled its commodity forward gas contracts, and therefore no assets or liabilities are measured at
fair value as of 30 September 2024. The fair value related to previous forward contracts for gas for the period Q4
2024 – Q1 2026 amounts to DKK 11 million as of 30 September 2024. These adjustments are recognised in Equity.
The balance will be transferred to the profit & loss statement up until expiry of the previous forward contracts.
12. Financial resources and cash flow
On 30 September 2024, net interest-bearing debt, totalled DKK 887 million which is the same as per 31 December
2023.
H+H’s financing is subject to usual financial covenants, which have been fulfilled in the first nine months of 2024
and are also expected to be fulfilled for the full year 2024.
13. Share-based payment
The performance-share-units schemes for 2023, 2022 and 2021 are active and presented in the 2023 Annual
Report.
In April 2024, the Board of Directors of H+H International A/S implemented a new long-term incentive programme
(“LTIP”) being a performance share unit (“PSU”) program. At initiation, a total of approximately 160,300 PSUs were
granted to the participants, including 47,850 PSUs to CEO Jörg Brinkmann and 17,600 PSUs to CFO Bjarne
Pedersen. Based on the average share price for H+H shares trading on the Nasdaq Copenhagen stock exchange
during the first ten days after the release of the 2023 Annual Report on 5 March 2024, the theoretical value per
PSU is DKK 68.02, corresponding to a total theoretical value of DKK 10.9 million if all 160,300 were to vest. The
vesting period for the PSUs is approximately three years, with vesting being in 2027 when the audited annual
report for 2026 is published.
14. Tax
Amounts in DKK million Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023
Current tax (6) 16 (15) -
Movement in deferred tax (1) (10) 55 35
Tax (7) 6 40 35
DRAF
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 14/14
Interim financial report
Q3-2024
15. Related parties
Related parties of H+H with significant influence include the Board of Directors and the Executive Board of the
Company and their close family members. Related parties also include companies in which the aforementioned
persons have control or significant interests.
Transactions with related parties
H+H did not enter into any significant transactions with members of the Board of Directors or with members of the
Executive Board, except for compensation and benefits received as a result of their membership of either the
Board of Directors, employment with H+H or shareholdings in H+H.
16. Share capital
There have been no movements in the share capital in the last five years except for the changes stated in Note 19
“Share capital and treasury shares” of the 2023 Annual Report.
17. Events after the balance sheet date
After the balance sheet date the conditions for the sale of land and buildings from H+H Polska Sp. z o.o. to a Polish
residential developer (as announced in a press release on 29 October 2024) have been fulfilled and the sale is
therefore final. The sales price of PLN 110 million (approximately DKK 190 million) have been paid in cash in
October and the gain will be classified as special items in the fourth quarter, having no impact on the full-year
financial outlook. The assets and related liabilities have been presented as assets held for sale.
No other events have occurred after the balance sheet date that will have a material effect on H+H Groups
financial position.