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• Organic Growth: 6% in Q4, driven by Polish and UK markets.

• Gross Margin: 25% in Q4, leading to a double-digit EBITDA and 6% EBIT margin.

• EBITDA: 9% for the full year 2024, despite 30% lower volumes compared to 2022.

• Cash Flow: Strong cash flow in Q4 due to land sale in Warsaw, improving financial gearing to 2.7 times.

• Revenue Growth: 8% in Q4, with 6% organic growth.

• Net Interest Bearing Debt: DKK682 million by year-end, with financial gearing of 2.7 times.

• Restructuring Costs: DKK27 million in Q4 related to restructuring in Germany.

• Revenue Performance by Region: 14% growth in the UK, 30% growth in Poland, and 18% decline in Germany.

• CO2 Emissions Reduction: 13% reduction in Scope 1 and 2 emissions compared to 2019.

• Safety Record: Lost time incident frequency number of 0.9, a new record.

• Financial Outlook for 2025: Organic growth of 5% to 10% and EBIT before special items of DKK120 million to DKK180 million.

• Warning! GuruFocus has detected 9 Warning Signs with FRA:J0H.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• H+H International AS (FRA:J0H) reported a 6% organic growth in Q4, driven by positive signals from the Polish and UK markets.

• The company achieved a 25% gross margin in Q4, leading to a double-digit EBITDA and a 6% EBIT margin, showing significant improvement over the previous year.

• Reopening of the mothballed plant in Pollington, UK, is progressing well, with new hires and successful mechanical operations.

• The sale of land in Warsaw generated strong cash flow in Q4, improving financial gearing to 2.7 times net interest-bearing debt to EBITDA.

• H+H International AS has made significant progress in ESG initiatives, reducing CO2 emissions by 13% compared to 2019 levels, and achieved a record low in safety incidents with a frequency number of 0.9.

Negative Points

• The German market remains challenging, with building permits declining by 19% and revenue dropping by 18%, impacting overall performance.

• Despite improvements, the company is still operating at 30% lower volume levels compared to 2022, affecting overall sales volume.

• The ramp-up of the Pollington plant in the UK is still in progress, with new hires requiring training, impacting short-term efficiency.

• The financial outlook for 2025 is cautious, with expectations of modest volume growth and no significant market recovery in Germany.

• The company's guidance for 2025 reflects more risks than opportunities, particularly due to uncertainties in the German market and the ongoing ramp-up challenges in the UK.