Heidelberg Materials Group Revenue Up 4%

Heidelberg Materials reported results from financial year 2023. While Group revenue rose slightly by 4% to €21.2 billion in a weak market environment, the result from current operations rose by 29% to €3.0 billion. Specific net CO₂ emissions were reduced by a further 3% compared with the previous year.

“Despite a persistently difficult market environment, we closed the past financial year with a record result,” said Dominik von Achten, chairman of the managing board of Heidelberg Materials. “We achieved new all-time peaks in all of our key figures. In the 150th year of our company’s history, we have once again shown that we can deal with change and crises. I am extremely proud of our teams around the world, who have remained firmly focused on our targets and have once again done an extraordinary job.

“An essential pillar for our long-term corporate success is sustainability, an area in which we also made great progress last year. We already generate over a third of our revenue with sustainable products. We offer our customers a wide range of low-carbon and circular products, which we have now incorporated into the evoBuild® brand across the Group. With evoZero, the world’s first carbon captured net-zero cement, we are paving the way for the future of construction. The product will be available next year and can already be ordered.

“We are entering the new financial year 2024 with optimism. Although the general economic conditions in the construction sector remain challenging, we anticipate growth in revenue and earnings also in the current year. Our shareholders are benefitting from this growth thanks to the progressive dividend and the new, comprehensive share buyback program,” he concluded.

Volumes developed differently in the individual Group areas but decreased in all business lines in comparison with the previous year. In 2023, high inflation rates across the globe, increased financing costs, and persistently high energy and raw material prices significantly impaired construction activity and thus demand for our building materials. The decline in demand in private residential construction, which was massive in some cases, could not be offset by a solid development in industrial commercial construction and infrastructure projects.

However, price adjustments in all Group areas more than compensated for this decrease in volumes and led to slight revenue growth on a like-for-like basis, i.e. adjusted for currency and consolidation effects, of 4.4% to €21,178 million (previous year: €21,095). Active cost and price management as well as slightly lower energy costs led to a 19.2% increase in result from current operations before depreciation and amortisation (RCOBD) to €4,258 million (previous year: €3,739) on a like-for-like basis. The result from current operations (RCO) rose by 29.5% on a like-for-like basis to €3,022 million (previous year: €2,476).

The profit for the financial year attributable to shareholders amounts to €1,929 million (previous year: €1,597). On a like-for-like basis, it rose significantly by €138 million to €1,928 million (previous year: €1,790). Adjusted earnings per share rose accordingly by €0.95 to €10.42 (previous year:  9.47).

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