HeidelbergCement records 7% rise in group revenue for the 9M19

HeidelbergCement records 7% rise in group revenue for the 9M19
08 November 2019

HeidelbergCement has reported a seven per cent increase in group revenue to EUR14.3bn for the first nine months of 2019, compared with EUR13.4bn in the year-ago period. Excluding consolidation and exchange rate effects, revenue advanced by four per cent YoY.

Results from current operations before depreciation and amortisation rose by 17 per cent YoY to EUR2.6bn from EUR2.3bn in the 9M18. The company attributed the results to growth in sales volumes and successful price increases, which more than offset rising costs, as well as the first-time application of the IFRS 16 Leases accounting standard, according to a press release. However, profit for the period fell 15 per cent YoY to EUR866m from EUR1.016bn.

"HeidelbergCement remains on a solid growth path. We were able to increase revenue and results also in the third quarter of 2019. Price increases and strict cost discipline more than compensated for the slightly weaker demand for our products in the third quarter," said Bernd Scheifele, CEO, HeidelbergCement.

Overall cement sales volumes saw a modest decline of three per cent YoY to 94.5Mt in the 9M19, against 97.2Mt in the corresponding period of 2018. However, ready-mixed concrete saw a six per cent advance in sales to 38Mm3 and aggregates remained largely consistent with the previous year at 233.3Mt.

"In Western and Southern Europe as well as in Asia, we were able to significantly increase our margins. Our business in North America developed well, although profitability was affected by positive one-time effects in the same quarter of the previous year. Group area Africa-Eastern Mediterranean Basin bottomed out and has reached its highest result for five quarters," added Dr Scheifele.

The company expects the positive development of the first nine months to continue in the final quarter of 2019. The more favourable development of energy costs in comparison with the previous year as well as solid development in Europe, North America and Asia, especially in Indonesia and Thailand, is anticipated to support the results for 2019, according to HeidelbergCement.

Furthermore, it expects a rise in sales volumes for its core products of cement, aggregates and ready-mixed concrete.

Published under Cement News