One of Lolland-Falster's largest companies has reported yet another poor financial statement. The sprayer manufacturer Hardi International A/S has concluded the 2023/24 financial year with a significant deficit of 57.2 million kroner. This is shown in the company's annual report, which has just been published.
Revenue has fallen to 546.4 million kroner from 590.4 million kroner the previous year, and gross profit has been reduced from 72.7 million kroner to 56.2 million kroner. According to the financial statement, the decline is partly due to lower order intake, a weakened production economy, and challenges with efficiency improvements.
The company's management foresees a continued difficult market in the coming year. The recent years have also been marked by economic challenges, and the company has not had a profit since 2014. Since then, Hardi International has experienced consecutive deficits. In 2022/23, the deficit was 17.9 million kroner, while in 2021/22 it was 39.6 million kroner.
Key Figures
Revenue: 546.4 million
Gross profit: 56.2 million DKK
Net result: -57.2 million DKK
Equity: 34.3 million
Average number of employees: 386
Order books are shrinking
Revenue has fluctuated from 512.5 million kroner in 2021/22 to 590.4 million kroner in 2022/23, before the latest decline to 546.4 million kroner in 2023/24. The order books have shrunk, and sales are expected to land between 400 and 450 million kroner in 2024/25. Management still expects a negative result but anticipates a smaller decline than in the latest financial year.
Hardi International is owned by French Exel Industries S.A., which has committed to ensuring the necessary financing for the company. The financial statement shows that the parent company has provided a capital injection of 33.6 million kroner in the form of debt forgiveness.
CEO Johannes C.W. Meulenkamp expects that investments in production equipment and efficiencies will improve the company's earnings in the long term. 'We continue to work on improving our efficiency and adapting to market developments,' writes CEO Johannes C.W. Meulenkamp in the management report.
Hardi International employed an average of 386 employees during the fiscal year, which is 53 fewer than the year before.
