H+H international A/S: H+H lowers its financial guidance for full year 2023
Company announcement No. 538, 2023
In light of the continuous challenging market conditions and lower-than-anticipated volumes for the second quarter, we update our financial outlook for the full year of 2023.
Following a challenging start to the year with very low new build activities across our markets an increase in demand was expected in the second quarter. The activity has increased but not to the anticipated levels. Current interest rate levels and re-pricing of mortgage products are leading to significant uncertainty for residential new build projects impacting the building activity across all our markets which we assume will remain throughout 2023.
CHIEF EXECUTIVE OFFICER JORG BRINKMANN QUOTE
"In common with the rest of the residential new build sector H+H is facing challenging market conditions. Current uncertainty around interest rate levels is causing future homeowners to postpone their buying decisions. We have a healthy balance sheet and are taking the necessary steps to navigate through this by actively adjusting our plant structure and reducing our fixed costs. There is still an underlying structural demand for housing across our markets and our current actions put us in a favourable position for when the market improves" says CEO Jörg Brinkmann.
Consequently, we anticipate a sales volume decrease of approximately -25% to -30% across our markets, most of the decline coming from Poland. The lower sales volume outlook directly impacts our guidance, with updated organic growth to be negative, ranging from -15% to -20%, down from the previous estimate of around 0%. EBIT before special items is now projected within the range of DKK 100-175 million, down from the previous estimate of DKK 330-400 million.
UPDATED FINANCIAL OUTLOOK FOR FULL-YEAR 2023
DKK Million Updated Previous
Organic growth -15% to -20% Around 0%
EBIT before special items 100-175 330-400
The financial outlook for 2023 is based on the following specific assumptions:
- Sales volumes expected to decrease to around -25 to -30% of which most is coming from Poland
- Exchange rates, primarily GBP, EUR and PLN remain at end-May 2023 levels
Jörg Brinkmann Peter Klovgaard-Jørgensen
Chief Executive Officer Chief Financial Officer
For further information please contact
Niclas Bo Kristensen
Head of Investor Relations & Treasury
+45 24 48 03 67
This document 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 International A/S, may cause actual developments and results to differ materially from the expectations expressed in this document. In no event shall H+H International A/S 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.