EQS-News: wienerberger with solid Half-Year performance well-placed for market recovery
EQS-News: wienerberger with solid Half-Year performance well-placed for market recovery
EQS-News: Wienerberger AG / Key word(s): Half Year Results
wienerberger with solid Half-Year performance well-placed for market
recovery
14.08.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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wienerberger with solid Half-Year performance well-placed for market
recovery
Vienna, August 14, 2024 – In the first half of 2024, wienerberger achieved
very positive results, meeting all its expectations, being in line with
its H1 operating EBITDA guidance and generated consolidated revenues of
€ 2,213 million (H1 2023: € 2,203 million). A solid Half-Year performance
against a backdrop of global political uncertainties with elections being
held or forthcoming in several major countries in 2024, contributing to an
already challenging housing investment market.
With weaker market demand as a result of interest rates being cut more
slowly than expected, the company has continued to manage costs
effectively: wienerberger reacted swiftly and achieved an operating EBITDA
of € 400 million (H1 2023: € 454 million) by optimizing cost structures
further and restructuring in time where necessary and realizing organic
growth by innovations in particular in the renovation and infrastructure
segments. The ongoing self-help program aimed at earnings growth and
efficiency enhancement, which contributed € 46 million to earnings last
year, also remains on track.
“wienerberger delivered a solid 2024 Half-Year performance and is
well-placed for market recovery in the future. With our sustainable
solutions for affordable housing construction, energy-efficient
renovation, and water management, we are not only continuously improving
people’s quality of life but are also proactively part of the solution
when it comes to tackling climate change and its effects”, comments Heimo
Scheuch, CEO wienerberger on this result.
The acquisition of Terreal, a key European provider of products for roof
repair and renovation also made a significant contribution to earnings. By
combining the expertise and product portfolio of both companies,
wienerberger became the leading European pitched-roof expert for
innovative, all-in roofing and solar solutions as well as solutions for
the entire building envelope in Europe and North America. The integration
of Terreal into the Group is well underway.
Heimo Scheuch, CEO wienerberger: “The acquisition of Terreal was the
biggest step to date in our value-creating growth strategy, and we have
continuously worked on a swift integration. By combining our portfolios,
wienerberger positions itself as the European pitched-roof expert capable
of integrating solar, rainwater, and additional innovative solutions. This
allows us to play a key role in renovating the European building stock and
establishes a strong platform for future growth.”
End Market Development in H1
Globally, the market for renovations has been relatively stable in the
first six months of 2024, and the infrastructure sector has even seen a
slight increase. For new residential housing, the developments have been
more diverse across wienerberger’s end markets.
The recovery of new residential housing markets in Eastern Europe has made
a strong contribution to wienerberger’s results in H1. In addition, end
markets in the United Kingdom and Ireland have seen a slight increase in
demand and activity. Less positive developments can be observed in Central
Western Europe, where the market has likely bottomed out, and in Northern
America. In most regions, the rebound of new residential housing markets
through public incentive programs has been delayed to 2025. Combined with
the global political uncertainty, this has created challenging
macroeconomic circumstances in all end markets. But thanks to
wienerberger’s efficient cost management, its ongoing self-help program
and timely restructuring measures in selected markets, a very positive
result was achieved.
Shaping the future with innovative strength
Amidst a changing macroeconomic situation, wienerberger holds firm in its
commitment to sustainability. Last year, the company had reached the goals
of its last three-year sustainability program and set itself extended and
more ambitious targets for 2026, particularly with regard to a further
reduction in emissions and the promotion of a circular economy. The new
sustainability program includes new benchmarks for water and waste
management. In addition, wienerberger will generate 75% of its total
revenue from building products contributing to net zero buildings by 2026,
such as integrated roof solutions, exterior walls and façades, heating and
cooling solutions and systems for the use of solar energy. By offering
innovative solutions, supported by modern cutting-edge technology,
wienerberger is helping to reduce emissions, save natural resources and
mitigate the effects of climate change on people and the environment.
wienerberger is also committed to promoting diversity and inclusion as
part of its new social goals.
Outlook: 2024 and beyond
The initial market assumptions for 2024 were based on the expectation of a
recovery in residential housing markets. This has not fully come to pass,
caused in part by slower-than-expected interest rate cuts, subduing bank
lending. In particular, demand for single-family housing is below
expectations. Several national governments in wienerberger’s end markets
have launched or announced public subsidy programs for their respective
construction sectors, but their impact will only be felt next year in most
cases. Political uncertainty will remain a negative factor in several
major countries and at least until after the presidential elections in the
USA.
For the 2024 financial year, the company nevertheless continues to expect
a solid performance and operating EBITDA guidance of € 800 – 820 million.
Looking beyond the bottom-building year 2024, an overall recovery shift
across markets is expected for next year, when governmental stimulus
programs will take effect and interest rates are likely to be cut further.
For wienerberger, the cost-efficiency measures taken in H1 2024 will still
contribute positively to results in 2025 with a full market recovery
expected. For 2026, a normalization of the market level is expected.
For the complete report on the first half of 2024, please visit
[1] https://www.wienerberger.com/en.html.
wienerberger
wienerberger is a leading international provider of innovative, ecological
solutions for the entire building envelope, in the fields of new build and
renovation, as well as infrastructure in water and energy management. With
more than 20,000 employees worldwide, wienerberger’s solutions enable
energy-efficient, healthy, climate-friendly, and affordable living.
wienerberger is the world’s largest producer of bricks and the market
leader in clay roof tiles in Europe as well as concrete pavers in Eastern
Europe. In pipe systems (ceramic and plastic pipes), the company is one of
the leading suppliers in Europe and a leading supplier of facade products
in North America. At the beginning of 2024, wienerberger successfully
completed the acquisition of Terreal, becoming the leading European
provider of innovative all-in roofing and solar solutions, as well as
solutions for the entire building envelope in Europe and North America.
With its more than 200 production sites, wienerberger generated revenues
of approx. € 4.2 billion and an operating EBITDA of € 811 million in
2023.
For further information, please contact:
Claudia Hajdinyak, Head of Corporate Communications Wienerberger AG
t +43 664 828 31 83 | claudia.hajdinyak@wienerberger.com
Investor Relations Wienerberger AG
t +43 1 601 92 – 10221 | investor@wienerberger.com
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14.08.2024 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: investor@wienerberger.com
Internet: www.wienerberger.com
ISIN: AT0000831706
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1967001
End of News EQS News Service
1967001 14.08.2024 CET/CEST
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