2010 was characterised by major changes at Hartmann; both in terms of the day-
to-day operations and the management of the business. A range of improvements
were implemented in production during the year, which contributed to
strengthening Hartmann's underlying operations and offset the effects of
significantly higher raw material prices in 2010. With the adjustment of the
organisation towards the end of the year and the launch of the strategy
"Competitive edge - driving growth", the efforts to enhance Hartmann's
competitive strength and expand its market position will continue in the years
ahead.
CEO Michael Rohde Pedersen on the developments in 2010:
During the past year, we have consolidated our business and lifted our
competitive strength through continued focus on operational improvements,
adjustment and simplification of our organisation as well as by forming closer
relations with a number of our major customers. The positive trend witnessed in
these areas made up for the negative impact of significantly higher paper prices
and costs relating to major management and organisational changes implemented at
Hartmann in 2010.
Also in 2010, our sales of egg packaging rose, and we successfully increased the
share of high-value packaging in supermarkets. We will need to sustain this
trend because it will help our customers to achieve the best possible results in
their product marketing efforts and help us to improve our earnings.
Michael Rohde Pedersen on Hartmann's prospects:
The efforts to create a stronger Hartmann are well underway, and our leading
position within the development, production and sales of moulded-fibre egg
packaging makes us well-positioned for generating profitable growth in the
coming years.
As early as in 2010, we expect to be able to lift our operating profit to DKK
105-125 million, from DKK 73 million in 2010. In the long term, we will improve
Hartmann's earnings through growth, aiming to achieve an EBIT margin in a 7-10%
range. In this way, we will continually secure an attractive return on invested
capital (ROIC >15%) for our shareholders, and we aim to distribute any excess
capital in order to generally maintain Hartmann's equity ratio at a maximum of
45%.
For further information, please contact:
Michael Rohde Pedersen
CEO
Tel. +45 45 97 00 00
Highlights
· Hartmann's revenue for 2010 was DKK 1,483 million (2009: DKK 1,380
million), its operating profit was DKK 73 million (2009: DKK 79 million) and its
EBIT margin 4.9% (2009: 5.7%)
· The Board of Directors proposes a dividend of DKK 2.25 per share, equal to
32% of the profit for the year.
· Hartmann appointed a new management in H2 2010, and its organisation was
adjusted in order to enhance Hartmann's competitive strength and earnings
capacity.
· Hartmann is launching the strategy "Competitive edge - driving growth"
which will further improve Hartmann's competitive strength and secure profitable
growth towards 2016
· Hartmann's revenue for 2011 is expected to be on a level with 2010, while
its operating profit is expected to come to DKK 105-125 million, corresponding
to an EBIT margin of 7-8.5%.
[HUG#1497480]
