strongest annual results ever with strong organic growth and record earnings

H+H International A/S

Today, the Board of Directors of H+H International A/S (hereinafter referred to as “H+H” or “the Group”) adopted the annual report for 2021.

CEO Michael T Quote from Andersen

I’m proud to report the strongest financial results ever in H+H’s history, with strong organic growth and record earnings. These results were largely due to a rapid recovery in European property markets following the Covid-19 pandemic, creating high demand and activity across our footprint. I am also proud to report that H+H has delivered on the promises we made in last year’s sustainability report by committing to an ambitious 1.5 degree emissions reduction target, which has been verified by the Science Based Target initiative. In doing so, H+H has become the leading manufacturer of AAC and CSU some products and one of only six building products companies in Europe with the sciencetarget baseds approved in accordance with 1.5degree scenario.

Selected financial highlights for the full year 2021 and the fourth quarter of 2021



Q4 2021

Q4 2020


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Gross profit before special items

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EBITDA before special items

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EBIT before special items

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Profit after tax

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Cash flow from operating activities

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Cash flow from investing activities

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Free movement of capital

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Organic growth






Gross margin before special items






EBITDA margin before special items






EBIT margin before special items






Return on invested capital






Financial gearing

GNDI to EBITDA ratio





Financial analysis (2020-numbers in parentheses)

Total turnover increased by 14% to DKK 3,020 million (DKK 2,654 million). Revenue growth before acquisitions and divestitures measured in local currencies (“organic growth”) was 13% (minus 6%).
Organic growth of 13% was mainly driven by a recovery in the UK market following the national lockdown in 2020 in response to the Covid-19 pandemic. Outside the UK, organic growth was 6%, driven by strong demand and selling price increases, particularly in the Central and Western Europe region.

Gross profit before special items was DKK 905 million in 2021 (DKK 836 million), corresponding to a gross margin before special items of 30% (31%).

EBITDA before exceptionals amounted to DKK 591 million (DKK 521 million), corresponding to an EBITDA margin before exceptionals of 20% (20%).

EBIT before exceptionals amounted to DKK 408 million (DKK 332 million), corresponding to an EBIT margin before exceptionals of 14% (13%).

Profit for the period increased by DKK 321 million (DKK 251 million) in 2020.

Cash flow from operating activities amounted to DKK 454 million (DKK 425 million), mainly due to higher EBITDA and positive working capital development partially offset by taxes paid.

Free cash flow amounted to DKK 27 million (DKK 219 million). Excluding acquisitions and divestments, free cash flow amounted to DKK 265 million (DKK 291 million).

The return on invested capital (“ROIC”) was 20% (18%).

Financial outlook for 2021

  • Revenue growth before acquisitions and divestitures measured in local currencies (organic growth) is expected to be between 10% and 15%.

  • EBIT before exceptional items expected to be between DKK 420 and 500 million

Expectations for H+H’s financial performance in 2022 are based on the following specific assumptions:

  • The exchange rates, mainly the pound sterling (“GBP”), the euro (“EUR”) and the Polish zloty (“PLN”) remain at the levels of mid-February 2022.

  • Inflation rates related to the cost of energy and raw materials are stabilizing at mid-February 2022 levels.

Increased long-term financial goals

Over the past few years, H+H has consistently exceeded its long-term financial targets for EBIT margin before special items and return on investment. Supported by underlying market trends of insufficient structural housing supply, population growth, urbanization and government support for increased housing production, it was decided to increase targets long-term performance of the Company in terms of EBIT margin and ROIC as follows:

  • The long-term financial target for the EBIT margin before special items is increased to 12% (previously 11%).

  • The long-term financial target for return on investment is increased to 16% (previously 14%).

  • The long-term financial objective for financial debt is unchanged at 1-2 times EBITDA before exceptional items

The long-term financial targets reflect the ambition to maintain minimum average levels over a full economic cycle.

Share buyback program

The board of directors has decided to launch a share buyback program of up to DKK 150 million. This corresponds to a total of 828,729 shares, or 4.6% of the current total share capital, based on the closing price on March 2, 2022. The decision is supported by continued strong earnings and cash flow generation available, which resulted in a financial leverage significantly lower than the Group’s long-term financial objective of 1 to 2 times EBITDA.

The Board of Directors continues to carefully balance further investments in growth while returning value to the Company’s shareholders. Given the relatively low financial leverage, there is an opportunity to return capital to shareholders of the Company while retaining the ability to potentially pursue further investments in organic and inorganic growth opportunities.

The share repurchase program is carried out with the aim of adjusting the capital structure of H+H, and it is expected that the shares repurchased under the program, which are not used to meet obligations relating to the The Company’s share incentive program will be proposed canceled at the 2023 General Meeting.

Announcement of new CEO

With reference to company announcement no. 467 of February 28, 2022, the Board of Directors announced that Dr. Jörg Brinkmann will be appointed as the new CEO, replacing Michael T. Andersen who will leave the H+H Group. The changes will become effective no later than March 1, 2023, and Michael T. Andersen will remain in his role as CEO until Dr. Jörg Brinkmann joins the company.

Dr. Jörg Brinkmann, 42, is a German national and is currently Managing Director of James Hardie Europe GmbH and a member of the management team of James Hardie Industries plc. Prior to his role at James Hardie, he was CEO of Fermacell GmbH and a member of the Xella Group Executive Committee. He holds a master’s degree from the University of Duisburg-Essen as well as a doctorate from the University of Hohenheim in Stuttgart, Germany.

Fthe whole year 2021 conference call

As part of the publication of the annual report for 2021, a conference call for investors and analysts is scheduled for March 4, 2022, at 10:00 a.m. CET. During the call, CEO Michael T. Andersen and Chief Financial Officer Peter Klovgaard-Jørgensen will present the annual report. The presentation will be followed by a question and answer session. Investors and analysts are invited to participate by telephone:

DK: +45 78150107
UK: +44 3333009267
USA: +1 8335268347

Other participants can follow the conference call via a live webcast here. The presentation slides of the conference call will be made available beforehand here. A replay of the conference call will then be available on the H+H Investor Relations website. here.

Other annual publications

In addition to the 2021 annual report, the following documents are now published and made available on the Group’s website:

Kent Arentoft Michael T. Andersen Peter Klovgaard-Jørgensen
Chairman of the Board of Directors Chief Executive Officer Chief Financial Officer

Contact information

For more information, please contact:

Andreas Holkjaer
Head of Investor Relations and Treasury
+45 24 48 03 67
[email protected]

H+H International A/Sthe main business of is the manufacture and sale of wall building materials, with sales in 2021 by DKK 3,020 mmillion. The main product lines are aerated concrete blocks and calcium silicate units used for the new residential construction segment. H+H a 31 factories in Northern and Central Europe with a total production of near 4.5 million cubic meters of product per year and holds a leading position in most of its markets. H+H a more … than 1,600 employees and is listed on the Nasdaq Copenhagen stock Exchange.


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