Heidelberg Materials grows revenue 13% in 9M22

Heidelberg Materials grows revenue 13% in 9M22
04 November 2022

Heidelberg Materials’ revenue in the first 9M22 rose significantly by 12.9 per cent in comparison with the previous year to EUR15,802m (9M21: EUR13,996m). Excluding consolidation and exchange rate effects, the rise amounted to 12.3 per cent. In particular, price increases in all group areas contributed to the revenue growth. Changes to the scope of consolidation of EUR622m had a negative effect on revenue, while exchange rate effects of EUR624m had a positive impact. 

The result from current operations before depreciation and amortisation (RCOBD) fell by EUR178m, or by 6.1 per cent, to EUR2718m (previous year: EUR2896m). The decline in result was attributable to the significantly higher prices of energy and raw materials compared with the previous year, which could only be partially offset by increases in our sales prices. 

Cement, aggregate, ready-mix and asphalt volumes
Heidelberg Materials reports that group-wide cement and clinker sales volumes fell by six per cent to 90Mt in the 9M22, down from 95.7Mt in the 9M21. In addition to consolidation-related declines, particularly in North America due to the sale of group activities in the west region in October 2021, the economic downturn in Europe led to a drop in sales volumes. Excluding consolidation effects, cement and clinker sales volumes decreased by 3.8 per cent.

Deliveries of aggregates fell by 3.4 per cent compared with the same period of the previous year to 223.5Mt (previous year: 231.3Mt). On a LfL basis, deliveries increased by 0.8 per cent. In addition to slight volume increases in North America and northern and eastern Europe-central Asia, this was mainly due to recovering demand in Asia-Pacific after the lockdowns in the two previous years, says Heidelberg Materials. 

Sales volumes of ready-mixed concrete fell by 4.3 per cent to 34.2 Mm3 (previous year: 35.7Mm3). Excluding consolidation effects, sales volumes were almost at the previous year’s level, says the company. While sales volumes in western and southern Europe were slightly below the year-ago level owing to economic factors, the decline in North America was primarily due to consolidation. In contrast, the group areas Africa-Eastern Mediterranean Basin and Asia-Pacific in particular recorded volume increases.  

Deliveries of asphalt fell strongly by 24.3 per cent to 6.2 Mt (previous year: 8.2Mt) due to consolidation. On a LfL basis, deliveries increased slightly by 0.5 per cent. 

Dr Dominik von Achten, chairman of the Managing Board, said: “The environment remains challenging. Due to high global inflation and the continuation of highly volatile price developments in the energy sector, we anticipate a slight weakening of demand in the coming months, especially in residential construction.”

Demand for building materials is weakening slightly, partly due to inflation and globally increasing interest rates, claims Heidelberg Materials. The energy and raw materials markets remain highly volatile. Heidelberg Materials continues to expect a strong increase in revenue (on a LfL basis) compared with the previous year and now anticipates a result from current operations of between EUR2.35bn and EUR2.55bn. 

Published under Cement News