Hartmann performed well in Q1 2010 with an EBIT margin of 9.8% (2009: 3.2%). As expected, the positive trend witnessed in the latest quarters thus continued in 2010, as the '10 in 10' initiatives implemented took full effect. Hartmann maintains its full-year forecast for 2010.

Peter Arndrup Poulsen, CEO, on the Group's performance in Q1 2010:
We had a very good Q1 with an EBIT margin of 9.8%. This is a marked improvement on the 3.2% achieved in Q1 2009, and we are now really seeing the full effects of our '10 in 10' initiatives and the cost reducing measures taken in the business area Europe. Moreover, a strong revenue following seasonal fluctuations, an improved product and price mix and positive developments in exchange rates also had a positive impact on operating profit.

On the outlook for 2010:
During the remaining part of 2010, we will aim to achieve further efficiency improvements and cost reductions, and we will maintain our forecast for 2010 of an EBIT margin of approximately 10% based on continued earnings growth in Europe and North America in the course of the year.

The first months of 2010 saw a sharp increase in the prices of paper and energy, which may, all things being equal, affect our production costs and hence cause our EBIT margin to fall by about 1-2 percentage points. Thus, achieving an EBIT margin of approximately 10% will be no less challenging, but we will consider it to be realistic, as we seek to offset the effect of the increasing paper and energy prices through the '10 in 10' measures.

Highlights Q1-10
Hartmann performed well in Q1 2010: operating profit before special items grew to DKK 37 million (2009: DKK 12 million), corresponding to an EBIT margin of 9.8% (2009: 3.2%).

The improvement in operating profit was primarily driven by strong revenues following seasonal fluctuations. Moreover, the '10 in 10' initiatives implemented and cost-reducing initiatives in the business area Europe now take full effect. The development was also driven by an improved product and price mix as well as positive developments in exchange rates relative to the year-earlier period.

Total revenue for Q1 2010 was DKK 381 million (2009: DKK 365 million). In Europe, the improvement was mainly attributable to a strong revenue following seasonal fluctuations, an improved product and price mix and favourable exchange rates, whereas in North America, it was mainly attributable to volume growth and favourable exchange rates relative to the year-earlier period.

The business area Europe saw an improvement: operating profit before special items nearly doubled to DKK 49 million (2009: DKK 26 million), while revenue remained largely unchanged at DKK 306 million (2009: DKK 301 million).

The business area North America reported its first quarterly profit. Revenue was DKK 53 million (2009: DKK 40 million), and operating profit before special items was DKK 2 million (2009: a loss of DKK 1 million).

Hartmann maintains its forecast of an unchanged revenue level of approximately DKK 1,400 million for 2010 (2009 actual: DKK 1,380 million). The EBIT margin is expected to continue to increase to a level of 10% due to continued earnings growth in Europe and North America (2009 actual: 5.7% before special items).

In Hartmann's Annual Report 2009, the Group's total energy and raw materials costs were assumed to be lower in 2010 than in 2009. The first months of 2010, however, saw sharp increases in the prices of paper and energy. All things being equal, these price increases may affect production costs in the course of 2010 and hence cause the EBIT margin to fall by about 1-2 percentage points. Thus, achieving an EBIT margin of approximately 10% will be no less challenging, but is still considered to be realistic, since the company seeks to offset the effect of the increasing paper and energy prices through the '10 in 10' measures. The expectations of '10 in 10' will be reviewed regularly in the light of developments in paper and energy prices.