Price adjustments and strong finish in fourth quarter result in 13% growth in Group revenue
REPORTING on their results for the full year ended 31 December 2022, Heidelberg Materials said higher energy and raw material prices had a significant impact on construction activity in 2022 and therefore on demand for their products.
The negative market dynamics in many of the company’s key markets led to significantly weaker development of sales volumes in all business lines during the reporting year compared with the previous year.
However, price adjustments in all Group areas more than compensated for the decline in volumes and led to 12.7% growth in revenue to € 21,095 million (2021: €18,720).
Nevertheless, despite good price momentum and strict cost management, the company was not able to fully offset the sharp increase in energy and raw material costs compared with the previous year.
Therefore, the result from current operations before depreciation and amortization (RCOBD) decreased by 3.5%, to €3,739 million (2021: €3,875), whilst the result from current operations (RCO) decreased by 5.3% to €2,476 million (previous year: €2,614).
Looking ahead, Heidelberg Materials say they have made a good start to 2023 and are optimistic about the course of year, with good orders for infrastructure projects and parts of the non-residential construction sector likely to offset the decline in residential construction.
Commenting on the results, Dr Dominik von Achten, chief executive officer of Heidelberg Materials, said: ‘We closed 2022 with a very good result thanks to a great finish in the fourth quarter.
‘As part of our Customer Excellence Programme, we were able to more than offset the sharp rise in energy costs in the fourth quarter for the first time during the year. Despite the challenging conditions last year, we are on track with all key figures.
‘We have made a good start to 2023. The fourth quarter showed that we have laid a good foundation for the development in this year. Volatility on energy and raw material markets remains high, but the current easing in energy prices is giving us some breathing room.
‘On the demand side, government infrastructure plans should compensate for the decline in private housing construction. We are optimistic about the further course of the year.’
For the financial year 2023, Heidelberg Materials anticipate further growth in revenue and expect the result from current operations (RCO) to be between €2.35 billion and €2.65 billion.