But substantially higher expenses for energy and raw materials burden half-year result
HEIDELBERGCEMENT have reported an 11.3% increase in group revenue to €9,950 million in the six months to 30 June 2022, compared with the first half (H1) of the previous year (€8,938 million). Excluding consolidation and exchange rate effects, the increase amounted to 11.6%, primarily due to successful price adjustments in all business lines.
However, significantly increased expenses for energy, raw materials, and freight led to a decline of 11.4% in the half-year result from current operations before depreciation and amortization (RCOBD) to €1,525 million (H1 2021: €1,720 million). Excluding consolidation and currency effects, the decrease amounted to 11.8%.
The RCOBD margin decreased by 392 basis points to 15.3% (H1 2021: 19.2%), whilst the result from current operations decreased by 16.3% to €908 million (H1 2021: 1,084 million). Excluding consolidation and exchange rate effects, the decrease was 15.6%.
Although the development of sales volumes in the first quarter of 2022 was almost at the previous year’s level, overall, sales volumes in the first half of 2022 were slightly below 2021 levels in all business lines, largely due to the economic slowdown in Europe in the second quarter.
Group-wide cement and clinker sales volumes decreased by 4.8% to 58.8 million tonnes (H1 2021: 61.8 million tonnes), deliveries of aggregates fell by 2.4% to 141.5 million tonnes (H1 2021: 145.0 million tonnes), ready-mixed concrete sales volumes decreased by 4.5% to 22.5 million cubic metres (H1 2021: 23.5 million cubic metres), and asphalt deliveries decreased by 25.8% to 3.6 million tonnes (H1 2021: 4.8 million tonnes).
Commenting on the results, Dr Dominik von Achten, chairman of the managing board of HeidelbergCement, said: ‘The first half of 2022 was characterized by the strong increase in energy and raw material prices. In this persistently difficult market environment, we were again able to significantly increase our revenue.’
‘Our Commercial Excellence Programme launched at the end of last year is taking effect. Through targeted price adjustments, we were able to almost offset the significant increase in energy and raw material costs in the second quarter.
‘However, in view of the unprecedented increase in energy prices in recent weeks, the second half of the year remains challenging. For the full year, we continue to expect a significant increase in revenue, while for the result from current operations we now anticipate a slight decline on a comparable basis compared with the strong previous year.’