HEIDELBERG MATERIALS AG Q1 2024 Trading Update
7 May 2024
Dr Dominik von Achten - CEO René Aldach - CFO
Q1 2024 operational overview
- Good performance in Q1 despite challenging environment impacted by bad weather conditions and less working days:
- Revenue -8%; EBITDA -2%; RCO -9% *
- EBITDA Margin further improves by +71 bps versus prior year, driven by positive pricing and strict cost management
- Growth path continues: acquisition of ACE Group in Malaysia
- 1.2 €bn share buyback program to be started in Q2
-
Up to 500 $m funding secured for Mitchell, our largest
CCUS project that will capture 2 mt CO₂ p.a. from 2030 - 2024 Outlook confirmed:
- RCO at 3.00-3.30 €bn
- ROIC at around 10%
- All like-for-like, excluding currency and scope impacts
2 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
Operational result
Q1 2024: Solid start against a very strong prior year
Revenue [€m]
-408 €m | |
LfL: | |
4,896 | -8% |
4,488 | |
Q1 2023 | Q1 2024 |
Operating EBITDA [€m]
-14 €m | |
LfL: | |
557 | -2% |
542 | |
Q1 2023 | Q1 2024 |
Operating EBITDA Margin
+71 bps
11.4% | 12.1% |
Q1 2023 | Q1 2024 |
Operating EBIT (RCO) [€m]
-27 €m | |
LfL: | |
258 | -9% |
232 | |
Q1 2023 | Q1 2024 |
3 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
Operational result
Q1 2024 Operating EBIT (RCO) bridge [€m]
258 | -12 | -22 €m | ||||||
(-9%) | ||||||||
246 | -202 | |||||||
189 | -9 | 224 | 7 | 232 | ||||
Q1 2023 RCO | Currency | Q1 2023 | Net volume | Price | Depreciation | Q1 2024 | Scope | Q1 2024 RCO |
LfL RCO | over cost | & Amort. | LfL RCO |
4 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
Operational result
Europe
Q1 Q1
2023 2024
-214 €m | |
LfL: -10% | |
2,252 | 2,038 |
Revenue [€m] |
-42 €m |
LfL: -30% |
127 |
85 |
RCO [€m] |
-146 bps
5.6% |
4.2% |
RCO Margin
- Volumes impacted by less working days in the quarter. Demand recovery visible in East Europe
- Good cost management partly compensates volume pressure
- Price over cost expected to remain positive throughout the year
Anatole France Primary School - France
5
06.05.2024 Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach
Operational result
North America
Q1 Q1
2023 2024
-53 €m | |
LfL: -7% | |
1,030 | 977 |
Revenue [€m] |
+21 €m
LfL: +464%
25 |
4 |
RCO [€m] |
+219 bps
2.6% |
0.4% |
RCO Margin
- Significant result and margin improvement driven by solid price development and disciplined cost management
- Weather related shortfall in volumes in Q1 2024 vs. very strong comparison base; order books remain solid across business lines
- Robust outlook for 2024 confirmed with solid contributions from recent investments
Patricia & Phillip Frost Museum of Science - Miami
6 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
Operational result
Asia - Pacific
Q1 Q1
2023 2024
-96 €m | |
LfL: -8% | |
937 | 840 |
Revenue [€m] |
+3 €m | |
LfL: -1% | |
67 | 70 |
RCO [€m] |
+114 bps
7.2% | 8.3% |
RCO Margin
- Footprint further strengthened through acquisition of ACE Group, largest supplier of pulverised fly ash in Malaysia
- Solid margin improvement despite volume driven decline in revenue
- Good performance in Australia despite weaker market
- Stable demand in Indonesia and India
West Kowloon Terminus - Hong Kong
7 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
Operational result
Africa - Mediterranean - Western Asia
Q1 Q1
2023 2024
-69 €m | |
LfL: -7% | |
566 | 496 |
Revenue [€m] |
-24 €m |
LfL: -20% |
91 |
67 |
RCO [€m] |
-262 bps
16.0% |
13.4% |
RCO Margin
- Slightly negative volume development due to Ramadan impact in Morocco and Egypt
- Overall good pricing in local currencies partly compensates cost pressure
- Currency devaluation puts pressure on costs in some markets
Hassan II Bridge - Morocco
8 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
Strategy
Accelerating portfolio review and optimising cost structure
Portfolio optimisation: *
Strict cost measures:
UK
Acquisition of Mick George (Recycling)
Canada
Acquisition of Green Drop Rock Products(AGG)
US East
Acquisition of RMS Gravel (AGG)
US East
Acquisition of The SEFA Group (SCM)
Germany
Acquisition of
SER Group (Recycling)
Germany
Acquisition of RWG I (Recycling)
Indonesia
Acquisition of Semen Grobogan plant (CEM)
Tanzania
Acquisition of Tanga Cement (CEM)
Georgia
Disposal of HM Georgia (CEM)
Spain
Disposal of parts of Spain assets
Gambia
Disposal of CEM business (CEM)
Germany | Shut-down clinker production in Leimen |
Germany | Shut-down clinker production in Hanover |
France | Closure of sites in Beffes and Villiers-au- |
Bouin | |
US Midwest Mitchell plant optimisation
- ~700 €m spent for growth projects
- ~275 €m disposal
Profit contribution and margin improvement already visible in Q1 result
* Since 01 January 2023.
9 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
Sustainability highlights
- Driving decarbonization: Acquisition of ACE Group, the largest supplier of pulverised fly ash in Malaysia
-
Up to 500 $m funding secured for Mitchell, our largest
CCUS project that will capture 2 mt CO₂ p.a. from 2030 - Draft legislation for Carbon Storage Act and key principles outlining Carbon Management strategy are important basis for accelerated realisation of our GeZero project
- evoZero®, the world's first carbon captured net-zero concrete, to be used for the new Nobel Center (Stockholm)
- Renewing the partnership with BirdLife - more than 40 biodiversity projects already initiated since its start
10 | 06.05.2024 | Q1 2024 Trading Update | Dr Dominik von Achten, René Aldach |
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Disclaimer
Heidelberg Materials AG published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 04:56:06 UTC.
