EQS-News: Wienerberger AG: 2022 – Wienerberger continues on its successful growth path
EQS-News: Wienerberger AG / Key word(s): Quarter Results
Wienerberger AG: 2022 – Wienerberger continues on its successful growth
path
10.11.2022 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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2022 – Wienerberger continues on its successful growth path
Highlights
• Wienerberger’s strong organic growth outperforms its markets
• Revenue grow by 33% to € 3,848.0 million
• Increasing contributions from acquisitions and self-help program
• EBITDA up by 64% to € 835.4 million
Outlook for 2022
• Growth through focus on innovation and system solutions
• EBITDA guidance 2022 revised upward to € 950-970 million
Vienna, November 10, 2022 – In the third quarter of 2022, Wienerberger
succeeded in keeping up the excellent performance of the first two
quarters, generating revenues at Group level of € 3,848.0 million in the
first nine months of the year (2021: € 2,896.5 million). Revenues include
contributions from the consolidation of companies acquired in the second
half of 2021 in the amount of € 391.7 million. Regardless of the
challenging and volatile market environment, EBITDA increased
substantially to € 835.4 million, as compared to the previous year’s level
of € 510.1 million. Compared to the corresponding period of the previous
year, the operating result before interest and tax (operating EBIT)
amounted to € 629.1 million (2021: € 323.3 million).
“As a result of geopolitical tensions, the year to date has been marked by
significantly increased energy prices and input costs. Thanks to our
forward-looking procurement and pricing policy, we succeeded in covering
the substantial rise in cost inflation while also ensuring the
availability of energy throughout the year. In shrinking markets, we once
again demonstrated the resilience of our sustainable business model and
successfully continued on our organic growth path, closing the first nine
months of 2022 with record results. Revenues grew by 33% to € 3,848.0
million and EBITDA soared by 64% to € 835 million”, says Heimo Scheuch,
Chairman of the Managing Board of Wienerberger.
This strong growth is attributable to Wienerberger’s successful
repositioning as a provider of innovative system solutions and to our
widely diversified portfolio. Moreover, our self-help program of measures
aimed at achieving higher earnings and enhanced efficiency delivered a
highly satisfactory contribution of € 38 million. The integration of the
companies acquired in Europe and North America in the previous year is
progressing faster than expected and contributed an impressive total of €
77 million to earnings.
In the third quarter of 2022 Wienerberger surpassed the excellent results
of the corresponding period of the previous year, although the challenges
resulting from the geopolitical situation and the related effects have
recently continued to increase. At € 1,275.9 million, external revenues
exceed the previous year’s value of € 1,027.5 million by 24%. EBITDA grew
by 41% to € 286.7 million (2021: € 203.1 million).
During the first nine months of the year, energy supply was secured at all
times. In addition, Wienerberger is actively advancing the energy
transition and the conversion to renewable energy sources. The Group’s
entire pipe and paver production, accounting for more than one-third of
the Wienerberger Group’s total revenues, has already been converted to
green electricity. In its ceramic production, the company is working on
the conversion to sustainable energy sources, such as electricity,
hydrogen or biogas, depending on local availability. Currently, the
increased use of electricity, for instance for kilns and in the drying
process, is being evaluated. The rising demand for electricity is to be
met from photovoltaics or wind energy directly at our production sites,
our goal being to achieve self-sufficiency in electricity. Within the
framework of our ambitious sustainability strategy, which provides for a
-15% reduction in CO2 emissions by 2023, Wienerberger expects to achieve
savings of -12% already by the end of 2022, which is well ahead of plan.
Performance of the Wienerberger Business Units
The Wienerberger Building Solutions Business Unit generated a strong
contribution to revenues and earnings in the first nine months of the
year. Renovation activities continued at a lively pace across all regions,
especially in the roof segment. Owing to the substantial energy price
increases, measures to enhance the energy performance of buildings through
renovation have gained enormously in importance. Throughout the third
quarter of 2022, as in previous quarters, the supply of natural gas was
secured in all our markets at all times. Operating under challenging
conditions, the Business Unit increased its revenues by 13% over the
corresponding period of the previous year, generating external revenues of
€ 681.5 million (2021: € 603.5 million) and operating EBITDA of € 173
million (2021: € 140.7 million).
Despite a slight decline in sales volumes, the Wienerberger Piping
Solutions Business Unit delivered a satisfactory performance thanks to the
consistent expansion of its portfolio to include customer-specific all-in
solutions and to its focus on operational excellence. In the third quarter
of 2022, Wienerberger Piping Solutions was confronted with volatile prices
of input factors, especially plastic granulates. However, due to efficient
procurement management, Wienerberger was always able to supply its
customers and successfully compensated the significant increase in input
costs through price adjustments. The previous year’s acquisitions in Great
Britain and Ireland, which resulted in an optimized product portfolio and
a larger market footprint, contributed to the satisfactory performance of
the Business Unit. In the third quarter of 2022, external revenues grew by
5% to € 327.7 million (2021: € 312.2 million). The recognition of a
provision in connection with legal disputes and the significant
devaluation of the Turkish lira had a negative impact on the strong
operating performance. As a result, operating EBITDA decreased from € 42.9
million in the prior-year quarter to € 29.8 million.
The North America Business Unit performed well in its US plastic pipe
business, whereas third-quarter business in solutions for the building
envelope was impacted by the cooling off of new-build activities in both
the USA and Canada. Like in Europe, this development is primarily
attributable to notable mortgage rate hikes as a result of the high level
of inflation. The steep price increases seen in some areas were
successfully offset through active price management. The integration of
Meridian Brick continued to progress as planned and generated considerable
synergies, resulting in an excellent contribution to earnings from this
acquisition. Overall, the North America Business Unit generated external
revenues of € 266.6 million in the third quarter of 2022 (2021: € 111.7
million) and operating EBITDA of € 71.4 million (2021: € 23 million).
Outlook for 2022
Wienerberger expects the current geopolitical and economic instability to
continue. Although there are signs of raw material prices trending
downward in individual areas, Wienerberger’s assumption is that energy
prices will remain high and personnel costs will rise. Hence, inflation
rates will still remain high, at least in the short term, and pressure for
higher interest rates will persist.
Commenting on the situation, Heimo Scheuch says, “In this challenging
environment, we expect that new-build markets will shrink by approx.
10-12% and infrastructure activities will decrease by 5-7% over the full
year, while stable development is expected in the renovation market.
Thanks to its innovation drive and its range of system solutions,
Wienerberger will significantly outperform its market environment. Over
and above the targets of the EU Green Deal, enhancing the energy
efficiency of existing buildings is more important than ever, given the
current high energy prices. We therefore expect to see solid demand for
our solutions with high thermal efficiency for new residential buildings
with a life span from over 100 years.”
Given the excellent results achieved in the first three quarters and a
strong start into the remaining fourth quarter, we are revising our
operating EBITDA guidance for 2022 upward to € 950-970 million.
Outlook for 2023
Wienerberger will continue to grow in 2023. Focusing on innovation and a
broadened range of system solutions, the company will strive to generate
further growth through intensified M&A activities in the renovation and
water management sectors. On the strength of operational excellence, we
are implementing continuous improvements in efficiency and doing our
utmost to sustainably ensure a competitive cost base.
“Throughout the current business year, energy supply for the Wienerberger
Group has been secured at all times. For 2023, too, we expect our
long-term energy supply contracts to be fulfilled on the agreed terms and
conditions. At the same time, we are actively advancing the energy
transition and the conversion to renewable energy sources. Our entire pipe
and paver production, accounting for more than one-third of the
Wienerberger Group’s total revenues, has already been converted to green
electricity. In our ceramic production, we are working on the conversion
to sustainable energy sources, such as electricity, hydrogen or biogas,
depending on local availability. The rising demand for electricity is to
be met from photovoltaics or wind energy directly at our production sites,
our goal being to achieve self-sufficiency in electricity step by step”,
adds Heimo Scheuch.
Wienerberger’s clear objective is to remain a reliable partner for our
customers, especially in the current challenging environment. As
successfully demonstrated in recent years, the company’s response to
rising cost inflation is to pursue a policy of active price management and
pass on cost increases in the usual, well-balanced manner. Persistent
geopolitical instability and rising interest rates will have a dampening
effect on economic activity. In its end markets, Wienerberger therefore
expects to see a roughly 15% downturn in new residential construction. The
company foresees a reduction by approximately 5% in infrastructure and
stable development in the renovation segment. Wienerberger is well
prepared for this market environment.
Based on its innovative product portfolio in the areas of energy-efficient
new construction, water management and as a major player in the renovation
market for roof and facade, Wienerberger will outperform its markets in
2023.
For the complete report on the third quarter of 2022, please visit
[1] https://www.wienerberger.com/en.
Wienerberger Group
The Wienerberger Group is a leading international provider of smart
solutions for the entire building envelope and for infrastructure.
Wienerberger is the world’s largest producer of bricks (Porotherm, Terca)
and the market leader in clay roof tiles (Koramic, Tondach) in Europe as
well as concrete pavers (Semmelrock) in Eastern Europe. In pipe systems
(Steinzeug-Keramo ceramic pipes and Pipelife plastic pipes), the company
is one of the leading suppliers in Europe. By acquiring Meridian Brick,
Wienerberger further strengthened its position as a leading supplier of
facade products in North America. With its total of 216 production sites,
the Wienerberger Group generated revenues of € 4.0 billion and EBITDA LFL
of € 671 million in 2021.
For further information, please contact:
Claudia Hajdinyak, Head of Corporate Communications Wienerberger AG
t +43 664 828 31 83 | claudia.hajdinyak@wienerberger.com
Daniel Merl, Head of Investor Relations Wienerberger AG
t +43 1 601 92 – 10221 | investor@wienerberger.com
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10.11.2022 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: Wienerberger AG
Wienerbergerplatz 1
1100 Wien
Austria
Phone: +43 1 60 192-0
Fax: +43 1 60 192-10159
E-mail: office@wienerberger.com
Internet: www.wienerberger.com
ISIN: AT0000831706
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1483511
End of News EQS News Service
1483511 10.11.2022 CET/CEST
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