EQS-News: Wienerberger AG / Key word(s): Annual Results
Full-year results 2023: wienerberger outperforms its end markets and meets
expectations
21.02.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Full-year results 2023: wienerberger outperforms its end markets and meets
expectations
Highlights 2023
• Total Revenues of € 4.2 billion, operating EBITDA of € 811 million
• Strong results, due to increased exposure to infrastructure (piping
business for energy and water management) and renovation business,
demonstrating resilience and successful strategic orientation
• Proposed dividend of € 0.90 per share for 2023
Strategy and outlook 2024
• Focus on sustainable growth, portfolio optimization and profitability
• Swift expansion of business activities in the renovation segment as
the leading European pitched roof expert for innovative roof and solar
solutions following Terreal acquisition
• Ongoing improvement of ESG performance with Sustainability Program
2026
Vienna, February 21, 2024 – wienerberger performed extremely well in the
challenging market environment in 2023, meeting its expectations,
outperformed its markets and, following the record year 2022, generated an
operative EBITDA of € 811 million and revenues of € 4.2 billion. This
strong outcome was primarily achieved as a result of increased activities
in infrastructure (piping business for energy and water management
applications) and in the renovation segment. However, the new build
segment, particularly in Europe, recorded some sharp declines due to
significantly higher interest and inflation rates. North America, on the
other hand, proved to be more resilient and made a solid contribution to
earnings.
In light of the challenging market environment at the start of the year,
the company intervened very quickly in the entire cost management process,
contributing to the strong results. The established self-help program,
aimed to increase earnings and improve efficiencies, also contributed
€ 46 million to the results. At the same time, technology optimizations
were implemented that have led to a reduction in the company’s energy
consumption and thus, in addition to cost savings, to a reduction in CO(2)
emissions. These solid results once more demonstrate the resilience of
wienerberger’s sustainable and diversified business model, which has the
necessary strength to successfully hold its own in difficult market
environments.
„In 2023 wienerberger once again outperformed its markets and successfully
maintained its position generating an operating EBITDA of € 811 million,
which is in line with our expectations. In terms of resilience, we have
focused on a balanced portfolio by expanding the renovation and
infrastructure segments. Also, our proactive cost management, innovation,
and broad diversification in ecological new build, energy-efficient
renovation as well as water and energy management are paying dividends. By
enabling affordable housing, continuously improving people’s quality of
life and proactively responding to the challenges of climate change and
its effects, wienerberger is becoming part of the solution and even more
sustainable and successful,” says Heimo Scheuch, CEO of Wienerberger AG.
Performance of the Segments
Europe West: In 2023, external revenues amounted to € 2.2 billion (2022: €
2.5 billion) and operating EBITDA came to € 378 million (2022: € 426
million).
The 2023 financial year was characterized by persistently high inflation
and rising interest rates. Demand fell in the new build segment,
especially in Germany, while France, Belgium and the Netherlands still
recorded good demand in the first half of the year. In the infrastructure
segment, there were inflation-related declines in public contracts in
almost all countries. However, the increased share of the wastewater
systems business and profitable growth in the renovation segment had a
positive effect on the performance. With the acquisition of the Danish
Strøjer Group in the second quarter and Komproment ApS in the first
quarter, wienerberger further expanded its sustainable range of innovative
façade solutions and thus its market share in the Nordic countries. The
acquisition of Wideco Sweden, which was also completed in the second
quarter, expands energy and water management solutions in Scandinavia. All
acquisitions made a favorable contribution to earnings in the second half
of the year and will continue to do so into 2024.
Europe East: In 2023, external revenues amounted to € 838 million (2022: €
945 million) and operating EBITDA came to € 213 million (2022: € 223
million).
Eastern Europe saw signs of a decline in inflation and interest rates from
the second half of the year onwards. The continued significant reduction
in the real purchasing power of the public sector and private households
had a negative impact on wienerberger’s end markets, with new build being
particularly affected. The markets in south-eastern Europe were an
exception, as both sales and earnings increased. Demand in the
infrastructure sector was stable overall, although it was evident that the
realization of projects continues to be delayed due to limited budgetary
resources in the public sector.
North America: In 2023, external revenues amounted to € 838 million
(2022: € 945 million) and operating EBITDA came to € 213 million (2022: €
223 million).
In a sluggish market environment, wienerberger successfully increased
market share and the operating EBITDA margin from 23.6% in 2022 to 25.5%
in 2023 through proactive cost and price management. The long-term demand
for residential space remains high level. Due to high level of interest
rates, demand in 2023 was nevertheless subdued, especially in new build.
In the infrastructure segment, the company recorded a significant increase
in demand in the second half of 2023.
Sustainability as a strategic and operational focus for business
development
Sustainability has always been an integral part of wienerberger’s
corporate strategy. Since the 2023 targets have been achieved, they have
been renewed and upgraded for 2026. The new three-year wienerberger
sustainability program extends the environmental and social topics,
leveraging wienerberger’s sustainability targets to organic growth, both
within internal processes as well as assisting society with products
supporting energy efficiency and climate resilience. It provides the right
strategic and operational focus for sustainable business development
complemented by the areas of revenue from products supporting net zero
buildings, water and waste management as well as diversity and inclusion.
By the end of 2026, wienerberger will see 75% of its revenue come from
building products through the sale of products that support net zero
buildings, such as integrated solutions for roofs, outer walls including
façades, heating, cooling, and solar power generation.
Dividend and 2024 Outlook
Considering the strong results for 2023 and the company’s attractive
dividend policy, the Managing Board will propose to the Annual General
Meeting that a dividend of € 0.90 per share be distributed for 2023.
By acquiring Terreal, a successful European provider of innovative roof
and solar solutions, wienerberger will significantly expand its presence
in the growing renovation segment and become the leading European expert
for pitched roofs. In total, the transaction includes almost 3,000
employees, 28 production sites and expected annual sales of around
€ 740 million. wienerberger is confident that the transaction will be
completed in the first quarter of 2024. With the preparatory measures
already taken in 2023, the company has done everything necessary to ensure
the swift and efficient integration of Terreal immediately after closing.
In order to ensure high profitability, wienerberger intends to
significantly outperform its markets in 2024 again, building on its
innovative and ecological solutions for renovation, infrastructure and new
build. The company will also continue to focus on proactive cost
management, price over cost and the continuation of the self-help program.
Assuming that the market development of the fourth quarter of 2023 will
continue in 2024, particularly in the first half of the year, and that the
earnings contributions from the Terreal deal will make a positive
contribution from the second quarter of 2024 onwards, operating EBITDA of
around € 860–890 million for 2024 is expected.
The full 2023 Annual Report will be published on March 25, 2024.
wienerberger
wienerberger is a leading international provider of innovative, ecological
solutions for the entire building envelope, in the fields of new buildings
and renovations, as well as infrastructure in water and energy management.
With more than 19,000 employees worldwide, wienerberger’s solutions enable
energy-efficient, healthy, climate-friendly, and affordable living.
wienerberger is the world’s largest producer of bricks and the market
leader in clay roof tiles in Europe as well as concrete pavers in Eastern
Europe. In pipe systems (ceramic and plastic pipes), the company is one of
the leading suppliers in Europe. By acquiring Meridian Brick, wienerberger
further strengthened its position as a leading supplier of facade products
in North America. With its more than 200 production sites, wienerberger
generated revenues of approx. € 4.2 billion and an operating EBITDA of €
811 million in 2023.
For further information, please contact:
Claudia Hajdinyak, Head of Corporate Communications Wienerberger AG
t +43 664 828 31 83 | claudia.hajdinyak@wienerberger.com
Investor Relations Wienerberger AG
t +43 1 601 92 – 10221 | investor@wienerberger.com
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21.02.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
═════════════════════════════════════════ ═════════ ════════════════════════ Language: English Company: Wienerberger AG Wienerbergerplatz 1 1100 Vienna Austria Phone: +43 1 60 192-0 Fax: +43 1 60 192-10159 Email: investor@wienerberger.com
Internet: www.wienerberger.com
ISIN: AT0000831706
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1841141
End of News EQS News Service
1841141 21.02.2024 CET/CEST