Heidelberg Materials reported that In the first quarter, sales volumes declined as a result of the economic downturn linked to lower construction activity, especially in residential construction, due to inflation and increased financing costs, however revenue rose significantly by 10.6% in comparison with the previous year.
Excluding scope of consolidation and exchange rate effects, the growth amounted to 13.4%. In particular, price adjustments in all group areas contributed to the revenue growth. Exchange rate effects of €109 million had a negative impact on revenue.
North American revenue rose from €798 million in the first quarter of 2022 to €1,030 million in the first quarter of 2023.
Dr Dominik von Achten, chairman of the managing board, commented, “We have had a good start to the year. In the first quarter, we were able to achieve a strong increase in revenue and results. Our operations in North America and Europe made a particular contribution to this success – we can keep building on this during the rest of the year. We are optimistic about the full year 2023.”
In February 2023, Heidelberg Materials’ CO₂ reduction targets for 2030 were reviewed by the SBTi within its new 1.5°C framework and recognised as science-based following a comprehensive validation process in accordance with the strict SBTi criteria. In addition to specific reduction targets for gross Scope 1 and 2 GHG emissions by 2030, the company also added a Scope 3 reduction target.
Heidelberg Materials is consistently expanding its global pioneering role in the cement industry when it comes to carbon capture, utilisation, and storage (CCUS). Since the beginning of the year, several CCUS projects have been launched or advanced to the next project phase:
As early as 2024, the world’s first industrial-scale CO₂ capture plant in the cement industry is scheduled to go into operation in Brevik, Norway.
Heidelberg Materials and Linde are using CO₂ as a raw material for use in the food and chemical industries and are building the world’s first large-scale CCU plant at the cement plant in Lengfurt, Germany. Capture activity is scheduled to start in 2025.
Heidelberg Materials and the Canadian government are partnering to build the world’s first net-zero carbon capture and storage plant in the cement industry in Edmonton, Canada. The plant is expected to go into operation in 2026.
The CCUS project in Padeswood, United Kingdom, has qualified for funding from the UK Department for Energy Security and Net Zero, thus entering the next phase of the selection process.
With the acquisition of the SER Group, a leading integrated company in the demolition and building materials recycling business areas, Heidelberg Materials is also expanding its circularity offering in Germany. Promoting the circular economy through the increased use of by-products and recycled materials from other industries is an essential part of the climate strategy. The acquisition of the SEFA Group, the largest fly ash recycling company in the United States, will significantly reduce the CO₂ intensity of Heidelberg Materials in the United States.
With the sustainability-linked bond issued in January 2023, Heidelberg Materials is also linking financing to its ambitious climate targets.