Heidelberg Materials reports strong 1Q revenue growth
Heidelberg Materials announced a 13.4 per cent YoY increase in revenues (adjusted for scope of consolidation and exchange rate effects) to EUR4896m in the first quarter of 2023. During the quarter sales volumes declined as a result of the economic downturn linked to lower construction activity, especially in residential construction, due to inflation and increased financing costs. In particular, price adjustments in all group areas contributed to the revenue growth. Exchange rate effects of EUR109m had a negative impact on revenue.
The company’s result from current operations before depreciation and amortisation rose by 41.3 per cent you to EUR557m in the 1Q23 from EUR394m in the 1Q22. The result from current operations improved by EUR168m to EUR258m during the period while excluding scope of consolidation and exchange rate effects the increase was EUR187m.
In addition to revenue growth, continuous cost management contributed to the positive development of results.
Dr Dominik von Achten, chairman of the Managing Board, commented: “We have had a good start into the year. In the first quarter, we were able to achieve a strong increase in revenue and results. Our operations in North America and Europe made a particular contribution to this success –we can keep building on this during the rest of the year. We are optimistic about the full year 2023.”
Outlook
In its outlook for 2023, Heidelberg Materials still expects that the good order situation for infrastructure projects and certain areas of commercial construction will largely offset the decline in residential construction. Energy prices have eased slightly in the first months of 2023, but they remain volatile and still well above the previous years.
Against this background, the company upgrades its outlook for the 2023. Heidelberg Materials expects a moderate increase in revenue (excluding scope of consolidation and exchange rate effects) compared with the previous year and now anticipates a result from current operations of between EUR2.50bn-2.65bn, an improvement when compared with its 2022 annual report outlook of EUR2.35bn-2.65bn.
