EQS-News: Wienerberger AG: Wienerberger posts strong organic growth in 2022

EQS-News: Wienerberger AG / Key word(s): Annual Results
Wienerberger AG: Wienerberger posts strong organic growth in 2022

22.02.2023 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Wienerberger posts strong organic growth in 2022

Highlights 2022

• Group Revenues up 25% to around €5.0 billion
• Significant, 48% EBITDA growth to more than €1 billion
• Proposed dividend increase of 20% to €0.90 per share for 2022 (2021:
€0.75)

Strategy and outlook 2023

• Profitable, sustainable growth strategy will remain in focus
• Outperformance versus softening end-markets, concentrating on
innovation and system solutions
• Continuous improvement of ESG performance

Vienna, February 22, 2023 – Despite difficult market conditions, the
Wienerberger Group achieved excellent results in 2022, underlining the
resilience of its business model with outstanding overall performance and
robust organic growth in all business units.

Record-setting revenues thanks to an innovative, sustainable product
portfolio

Although a downturn compared to 2021 was seen in the new build,
renovation, and infrastructure markets from the second quarter,
Wienerberger was still able to post its best results ever, as external
revenues rose to around €5.0 billion (versus €4.0 billion in 2021). The
strong, double-digit revenue growth of 25% was mainly driven by the
company’s dedication to developing system solutions that are innovative
and sustainable.

As CEO Heimo Scheuch explained, “Last year we successfully exceeded our
own expectations and generated a 48% increase in current EBITDA compared
to 2021. A remarkable performance considering the macroeconomic
environment and high inflationary levels. This success based on our
innovation leadership in water management and green building. Our goal is
to improve people’s living is standards and build a better world for
future generations by offering sustainable, innovative, and affordable
solutions for new residential housing, renovation, and infrastructure
projects. To this end, we are also consistently committed to the goal of
being climate neutral by 2050, so by the end of 2023 we will have reduced
CO₂ emissions by 15% compared to 2020. For the ongoing year, we are also
confident that we will again generate strong earnings and significantly
outperform our markets through our innovative, sustainable solutions
portfolio. As with the recently communicated intention to acquire the
Terreal Group, Wienerberger will continue to actively pursue growth
opportunities in our markets and create value for our shareholders.
Creating the expert for pitched roofing in Europe is a very exciting
opportunity to expand our exposure in the renovation market. As we have
shown with the acquisition of Meridian in the US, we will rapidly
integrate Terreal into our local operations in particular in France and
Germany.”

Top-notch management of costs and energy supports EBITDA growth

Thanks to its effective group-wide cost and energy management,
Wienerberger was able to generate outstanding results in terms of both
revenues and profits, as the Group’s EBITDA surged 48% higher in 2022 to
reach more than €1.0 billion (2021: €694 million).

Stringent cost management and the Group’s self-help program made a sizable
profit contribution. With regard to energy costs, Wienerberger’s
forward-looking procurement strategy was a great advantage: with this
approach, gas and electricity are continuously purchased in advance based
on the production planning. Consequently, around 96% of the required gas
supply was already bought forward in 2022.

The Group’s portfolio was systematically streamlined for growth
perspectives and profitability by way of strategic disposals (for example
the management buy-out in Russia and withdrawal from certain export
markets with lower margins) and a number of recent acquisitions, which had
a tangible positive impact on revenues and profits. For instance,
FloPlast, the British producer of wastewater and rainwater solutions,
benefited from the strong conditions on the renovation market, and the
2022 integration of Meridian Brick, the all-around supplier of façade
solutions in North America, has already yielded significant synergies.

Robust performance by all business units in a challenging market
environment

Despite the difficult market conditions, all three of Wienerberger’s
business units achieved excellent results in 2022: For example, external
revenues at Wienerberger Building Solutions rose 17% to €2.7 billion
(versus €2.3 billion in 2021), with operating EBITDA expanding 37% to €655
million in 2022 (previous year: €476 million). Wienerberger Piping
Solutions also posted an excellent result, as revenues rose an impressive
15% to €1.4 billion (from €1.2 billion in 2021). Despite declining market
volumes, operating EBITDA also increased by 14%, advancing from €123
million in 2021 to €141 in 2022, thanks to the effective, proactive
management of margins. In parallel with this, the product portfolio of
Wienerberger Piping Solutions was also supplemented with the acquisition
of two system solution suppliers, Vargon in Croatia and QPS in Norway.
During the reporting period, the North America Business Unit also
registered strong gains in external revenues and profits: External
revenues improved 89% to €945 million (previous year: €499 million), while
operating EBITDA more than doubled to €226 million (from €94 million in
2021). This handsome increase in earnings was driven by the successful
integration of Meridian Brick and the exceptionally good development of
margins in the pipe business.

Sustainable growth with well-defined ESG targets

Wienerberger is keenly aware of pressing issues such as climate change,
loss of biodiversity and scarce resources. With its sustainability
strategy, the company has set a clear path for itself in recent years and
adopted ambitious objectives in the fields of biodiversity, the circular
economy and decarbonization. In the last ten years, Wienerberger has
completely redefined its strategic positioning and transformed itself into
a comprehensive supplier of energy-efficient solutions for renovation, new
builds and water management fit for the future. In addition to the
long-term goal of being climate-neutral by 2050, Wienerberger will reduce
CO₂ emissions by 15% by end-2023 compared to 2020.

Dividend increase and outlook for 2023

In light of the excellent results for 2022, the Managing Board will
propose to the Annual General Meeting that the dividend be increased by
20% to €0.90 per share for 2023.

In its outlook for 2023, Wienerberger expects global market conditions to
remain unsettled. Several factors will continue to play a role this year,
such as the war in Ukraine, high volatility on the financial markets, a
slow decline in inflation and still rising interest rates. The markets in
Europe and North America will be considerably weaker in 2023 than in
previous years, particularly in the new build market (-15/-20%) and in
infrastructure (-5/-5%) as well. The market for renovations, maintenance
and repair (accounting for 29% of revenues) will remain rather stable. In
this market environment, Wienerberger intends to significantly outperform
its markets in 2023 again, building on its sustainable, innovative
portfolio of solutions.

In December 2022, Wienerberger announced its intention to take over
significant parts of the Terreal Group, a successful European supplier of
innovative roof and solar solutions. By acquiring Terreal’s business in
Germany, France, Italy, Spain, and the USA, Wienerberger intends to
significantly expand its footprint in building renovation and repair and
evolve into the European pitched roof expert. Overall, the transaction
concerns almost 3,000 employees, 29 production sites, and estimated annual
revenues of approximately €740 million and an EBITDA contribution of
€ 100 million. The transaction is to be closed in the course of 2023 and
remains subject to the approval by the competition authorities and
compliance with the remedies typically imposed on a transaction of this
nature.

The full 2022 Annual Report will be published on March 27, 2023.

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 approx. €5.0 billion and
EBITDA LFL of €1 billion in 2022.

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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22.02.2023 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: 1565141

 
End of News EQS News Service

1565141  22.02.2023 CET/CEST

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