Hartmann increased its market share in turbulent 2021

8.3.2022 16:50:40 CET | Brødrene Hartmann A/S | Annual financial report

In 2021, Hartmann has worked with persistence and determination to expand the group’s presence and market share and to secure its revenues in turbulent markets that have been affected by historically strong increases in recycled paper and energy prices and by highly volatile egg packaging demand during the COVID-19 pandemic. .

The year 2021 saw a sharp increase in costs in the wake of sharp increases in the prices of recycled paper and energy, the two most important raw materials for Hartmann’s production. In some markets, the price of recycled paper jumped more than 60%, while the price of natural gas increased more than sevenfold in December 31, 2021 compared to the end of 2020. Faced with these difficult conditions, Hartmann continued and intensified efforts to improve production efficiency, but the group also had to increase average selling prices. These measures partially, and with a certain lag, mitigated the effects of rising raw material prices, allowing Hartmann to generate a profit margin of 9.2%. Hartmann continues its efforts to achieve a satisfactory profit margin in 2022 under difficult conditions.

CEO Torben Rosenkrantz-Theil said: “Having a strong position in our markets, we have continued to increase our production capacity in 2021 to meet the long-term growth in demand and gain additional market share. In 2022, we will continue our efforts to improve production efficiency and raise selling prices to guide Hartmann through a period of high volatility impacted by dramatic increases in commodity prices, historical geopolitical tensions following the Russian invasion of Ukraine and the ongoing effects of COVID-19.

2021

• The group’s turnover rose to DKK 2,744 million (2020: 2,567 million Danish crowns).
• Operating income* was 250 million Danish kroner (2020: 452 million Danish kroner) corresponding to a profit margin of 9.2% (2020: 17.5%).
• Investments went to 542 million Danish crowns (2020: 437 million Danish kroner).

Directions for 2022

Hartmann expects to grow its overall revenue to DKK 2.9-3.3 billion for a profit margin of 2-7% in 2022, with growth mainly driven by volume growth and improved average selling prices.

Persistently high prices for recycled paper and energy, Hartmann’s main raw materials, are expected to impact the group’s profits and profit margin. The high prices of raw materials should lead to a significant increase in production costs, which the group intends to offset by continuing efforts to adjust selling prices and improve the overall price and product mix. However, due to the length of existing customer agreements, price adjustments will be implemented with some lag. The historically high volatility of raw material prices leads to significantly reduced visibility and increased uncertainty about the evolution of the group’s cost levels.

COVID-19 brings increased operational risk and can further lead to personnel issues, highly volatile exchange rates and reduced visibility.

Investments are expected around 225 million Danish kroner in 2022.

* Operating profit and profit margin are presented before restatement of special items and hyperinflation.

contacts

• Torben Rosenkrantz-TheilCEO, (+45) 31 21 68 72

About Brødrene Hartmann A/S

Hartmann is the world’s leading manufacturer of molded fiber egg packaging and one of the leading fruit packaging manufacturers in South America and India. The group is also the world’s largest manufacturer of technologies for the production of molded fiber packaging. Founded in 1917, Hartmann’s market position is built on its strong technological know-how and extensive experience in sustainable molded fiber production dating back to 1936. Hartmann sells egg and fruit packaging to manufacturers, distributors and retail chains, which are increasingly demanding sustainable packaging solutions. and specialized marketing expertise. Our versatile product portfolio is customized to meet the needs of customers and consumers in each individual market. Hartmann sells machinery and technology to manufacturers of molded fiber packaging in selected markets. Based in Gentofte, Denmark, Hartmann has 2,800 employees. Hartmann’s production platform consists of 15 factories in Europe and Israel, North and South Americaand India and Russia.

Attachments

• Annual report Hartmann 2021.pdf

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