Hoffmann Green reports flat revenue in 2022

Hoffmann Green reports flat revenue in 2022
27 March 2023

Hoffmann Green Cement Technologies has reported revenue of EUR2.22m in 2022, down from EUR2.38m in the previous year. EBITDA over the same period declined from a loss of EUR5.23m to a loss of EUR6.62m. The decrease in EBITDA over the year was due to higher raw material costs (EUR0.6m), increased product testing and development (EUR0.4m) and higher payroll (EUR0.4m). 2021 saw a net loss of EUR5.56m, followed by a net loss of EUR6.74m in 2022.

The company recorded a strong increase in activity during the second half of 2022, with volumes sold coming in at 12.010t, up 18.6 per cent YoY. Its order book strengthened to 240,000t, up 20 per cent YoY, due to the signing of a number of cement supply contracts, including BouyguesImmobilier, Les Maçons Parisiens, L’Entreprise de Construction et Bâtiment du Littoral and Immobilière 3F.

Hoffmann Green also established a joint venture with a Swiss construction company to build a plant similar to Hoffmann Green's second production site (H2), which will distribute Hoffmann cements exclusively in Switzerland. It also signed its first partnership in the UK with Cemblend, a British manufacturer of special cements.

Julien Blanchard and David Hoffmann, co-founders of Hoffmann Green Cement Technologies, commented, “In an unprecedented market environment where the construction sector has been strongly impacted by inflation, Hoffmann Green has achieved a growth of nearly 19 per cent in its cement volumes sold over 2022. The activity intensified during the second half of the year thanks to greater price competitiveness on some projects and a growing attractiveness of carbon-free solutions. Indeed, we are seeing more and more initiatives, particularly from traditional players, to meet the significant demand for cleaner construction. This evolution of the market towards a more sustainable construction model confirms our company's pioneering position as a leader in the carbon transition of the cement industry. As a result, we have seen a real emulation of this trend, with a sharp increase in contract requests since July 2022, strengthening our order book, as well as a record number of projects over 2023, enabling us to turn this order book into revenue.”

By 2026 the company is aiming for revenue of EUR130m and a 40 per cent EBITDA margin.

Published under Cement News