HeidelbergCement’s Group revenue rises 11% in 1H22

HeidelbergCement’s Group revenue rises 11% in 1H22
29 July 2022

HeidelbergCement Group's revenue rose significantly by 11.3 per cent to EUR9950m (1H21: EUR8938m) in comparison with the first half of the previous year. Excluding consolidation and exchange rate effects, the increase amounted to 11.6 per cent. This is primarily due to successful price adjustments in all business lines, says HeidelbergCement. 

"The first half of 2022 was characterised by the strong increase in energy and raw material prices. In this persistently difficult market environment we were again able to significantly increase our revenue," said Dr Dominik von Achten, chairman of the Managing Board of HeidelbergCement.

HeidelbergCement's sales volumes in the 1H22 were slightly below the previous year's level in all business lines, due to consolidation and the economic slowdown in Europe. Group-wide cement and clinker sales volumes decreased by 4.8 per cent to 58Mt (1H21: 61.8Mt). Deliveries of aggregates fell by 2.4 per cent in comparison with the previous year to 141.5Mt (1H21: 145Mt). Ready-mixed concrete sales volumes decreased by 4.5 per cent to 22.5Mm3 (1H21: 23.5Mm3). Asphalt deliveries decreased significantly by 25.8 per cent to 3.6Mt (1H21: 4.8Mt). 

Significantly increased expenses for energy, raw materials and freight led to a decline of 11.4 per cent in the result from current operations before depreciation and amortisation (RCOBD) to EUR1525m (1H21: EUR1720m). Excluding consolidation and currency effects, the decrease amounted to 11.8 per cent. The profit for the period amounted to EUR597m (1H21: EUR825m). 

There was a cash outflow from operating activities of continuing operations of EUR133m (1H21: cash inflow of EUR158m) in the 1H22. Net debt amounted to EUR6.8bn (1H21: EUR7.5m) at the end of the 1H22. The leverage ratio was 1.85x (1H21: 1.85x) and thus within the target corridor of 1.5x to 2.0x.

In the 1H22 HeidelbergCement reduced the specific CO2 emissions by around 2.5 per cent compared with the end of 2021. In May 2022, HeidelbergCement significantly tightened its CO2 reduction targets at the Capital Markets Day and aims to achieve a value of 400kg CO2/t of cementitious material already in 2030. In addition to optimising products and processes, the company is focussing in particular on the capture, utilisation, and storage of CO2 (CCUS). Solely with CCUS projects that have already been launched, the company aims to save 10Mt of CO2 cumulatively by 2030.

The market environment in the construction sector is also being influenced by the negative effects of the Russian-Ukraine war and its effects. Energy, raw material, and transport prices have risen considerably, especially in recent weeks, and an easing is not expected for the time being. 

Against this background, the company continues to expect a strong increase in revenue for the 2022 business year and now anticipates a slight decline in the result from current operations compared to the strong development of the previous year, in each case before consolidation and exchange rate effects.

Published under Cement News