HeidelbergCement share: HeidelbergCement exceeds expectations – additional revenue planned through price increases

Earnings from ongoing business before depreciation declined by a comparable 26.9 percent to 394 million euros, as the building materials manufacturer announced in Heidelberg.

The corresponding return on sales fell by 470 basis points to 8.9 percent. In a consensus put together by the company, analysts had expected an even sharper slump in earnings, down to 363 million euros.

Between July and September, revenue increased by 11.8 percent to EUR 4.43 billion. Analysts had only expected 4.3 billion euros here. Sales volumes remained roughly at the previous year’s level.

HeidelbergCement confirmed the forecast for 2022 and, on a comparable basis, continues to expect significant growth in sales compared to the previous year (EUR 18.7 billion) and a slight increase in the result from ongoing business.

“Even if the uncertainties regarding energy and raw material availability and costs remain high, we continue to see good demand for our products in all regions,” said CEO Dominik von Acht.

HeidelbergCement plans 2 billion euros in additional revenue through price increases

In order to curb rising costs, HeidelbergCement intends to raise prices even more than announced last autumn. In 2022, with the help of price increases, the proceeds should be increased by around 2 billion euros, explained CEO Dominik von Acht in an analyst presentation on the first quarter figures. The originally targeted goal of an increase in revenue of EUR 350 million through higher prices will, according to the information, soon be achieved: Von Achten estimated the effects of the price increases carried out so far on revenue at EUR 236 million.

In addition, the building materials group wants to improve earnings by 150 million euros through more efficient production and maintenance. HeidelbergCement also left this target, which was also announced in autumn, unchanged. To date, EUR 21 million of this has been secured through specific measures.

FRANKFURT (Dow Jones)

Image sources: HeidelbergCement