HEIDELBERG (dpa-AFX) – The HeidelbergCement building materials group ended the 2021 financial year surprisingly well. Sales and operating results increased significantly compared to the previous year. Things went better than the company had last expected. The Dax group (DAX 40) also exceeded the expectations of the analysts. The stock reacted with a price jump on Tuesday after the surprising publication of figures. The shares rose 3.2 percent in early trading.
A trader described the figures as “clearly better than expected”, the next price impulse should now be the outlook for the current year. Analyst Harry Goad from Berenberg Bank called the numbers “clearly positive” in an initial assessment. The group seems to be successful with price increases in the face of cost inflation. The pressure on margins, especially from energy prices, may have peaked.
Sales in the 2021 financial year are expected to be in the order of 18.7 billion euros, as Heidelbergcement announced on Monday evening in Heidelberg. On a comparable basis, this corresponds to an increase of around eight percent compared to the previous year. Heidelbergcement had forecast a slight increase in revenue before exchange rate and consolidation effects for 2021.
According to preliminary information, adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) increased to almost 3.9 billion euros. This means an increase of around six percent compared to the previous year on a comparable basis. According to a survey commissioned by Heidelbergcement, analysts had expected slightly less. Adjusted earnings before interest and taxes (EBIT) rose by around 12 percent to 2.6 billion euros in 2021. This was significantly more than experts had expected. Heidelbergcement had expected a “strong increase” in the key earnings figures.
Heidelbergcement did not give any reasons for the overall surprisingly good business development. However, company boss Dominik von Acht had already announced price increases and launched a new savings program due to the significant rise in energy costs. With savings, the group wants to reduce costs by at least 500 million euros by the end of 2022. High energy prices had weighed on results in the third quarter.
In order to get through the Corona crisis well, Heidelbergcement had set up an austerity program almost two years ago. The group reduced costs by around 1.3 billion euros in 2020 alone, more than initially planned.
The company also wants to concentrate on the strongest markets – and sell parts of the business that do not meet the return expectations in the medium term. The company recently announced the sale of further assets in Spain and the sale of the business in Sierra Leone. In 2021, the company sold, among other things, its business in the western United States for 2.3 billion US dollars (1.9 billion euros at the time). At the same time, the Group is expanding its aggregates and ready-mixed concrete business in the north-west of the USA with the acquisition of Corliss Resources and its business in Tanzania with the acquisition of Tanga Cement.
Von Acht had recently shown himself to be confident about the current year. The global infrastructure measures should gradually contribute to growth from 2022 onwards. The momentum in private residential construction will also remain high, said the company boss at the beginning of November. The full preliminary figures for 2021 are to be published on February 24./mne/stk/jcf/jha/
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