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Press Release

2017 – A strong year for Wienerberger

28. February 2018

Highest revenues in the Group’s history: +5% to € 3,119.7 million

Overview

  • Strong operational performance: +3% in EBITDA to € 415.0 million (2016: € 404.3 million)
  • Net profit at 10-year high: € 123.2 million (2016: € 82.0 million)
  • Accelerated growth with acquisitions in Europe and the USA

Wienerberger share and dividend 2017

  • Positive development of the Wienerberger share: 24% shareholder return in 2017 and over 200% in past five years
  • Dividend 2017: +11% to € 0.30 per share plus one-time special dividend of € 0.10

Outlook

  • Focus on organic growth, operational excellence and growth investments
  • Target for 2018: EBITDA between € 450 to € 470 million  

 

2017 was a year of growth for the Wienerberger Group. Heimo Scheuch, Chief Executive Officer of Wienerberger AG, summing up the developments in the reporting period:

2017 was a good year. We generated record revenues of over € 3.1 billion – the highest ever in the history of the company. Our dedication to improving operations continues to deliver results as we succeeded in increasing our EBITDA for the fifth consecutive year, reaching € 415 million in 2017. These convincing earnings translated into a significantly higher net profit, now at its ten-year high of € 123 million.

Heimo Scheuch

Heimo Scheuch

CEO

In 2017 Wienerberger stepped up the pace of growth. By taking over the Belgian Preflex Group, the company strengthened its presence in the fast growing and profitable segment of pre-wired electric conduits. Acquisitions in Germany, Austria and North America broadened the geographic scope of the brick business. An acquisition in Romania is still subject to approval by the local competition authority. Overall, Wienerberger invested € 58.8 million in value accretive growth and acquired companies with revenue run rates of € 90 million and EBITDA of € 16 million. These acquisitions fit seamlessly with the existing operations, both geographically and strategically, and will enhance Wienerberger’s growth profile over the coming years.

Despite these growth steps, the Group’s net debt as of 31 December 2017 declined by 10% to € 566.4 million (2016: € 631.6 million). At year end, the gearing was at 29.6% with a net debt/EBITDA at 1.4 years.

Highly satisfactory developed the ongoing cost optimization program which yielded sustainable savings of € 11 million in 2017. Also, the working capital was successfully managed: even after the integration of the most recent acquisitions, working capital remained on 17% of revenues.

The past business year was marked by diverging developments in the different markets. Nevertheless, new housing starts as well as infrastructure spending increased. This trend was particularly pronounced in Eastern Europe and the USA. Overall, it led to higher sales volumes. The development of business benefited from increased average prices and constant improvements of cost structures. Against this background, Wienerberger AG generated consolidated revenues of € 3,119.7 million in 2017, up by 5% from the previous year’s level.

The Group’s EBITDA increased by 3% to € 415.0 million compared to € 404.3 million in 2016. Corrected for foreign exchange effects, structural adjustment costs and contributions from acquisitions and real estate sales, EBITDA grew organically by 7% to € 407.9 million.

The Group’s net profit grew significantly in the reporting period from € 82.0 million to € 123.2 million – which corresponds to a 50% rise.

Our objective is to create value for our shareholders. 2017 was a year of positive developments not only for the company, but also for the Wienerberger share.

Heimo Scheuch

Heimo Scheuch

CEO

Share development and dividend for 2017

The shareholder return was 24% in 2017 and more than 200% over the past five years, which represents a significant outperformance of the wider market, states CEO Heimo Scheuch. Subject to approval by the Annual General Meeting of Wienerberger AG on June 14, 2018, a dividend of € 0.30 will be distributed to the shareholders. This corresponds to an 11% increase over the previous year. In addition, a one-time special dividend of € 0.10 will be distributed by the ANC Private Foundation. At the end of 2017, Wienerberger launched a buyback program for up to 1.2 million shares, which will be running until 30 October 2018.

Positive market assessment for 2018

Positioned for further growth

The Wienerberger Group will continue to grow in 2018. Our optimism is based on our strategy and the implementation of the measures planned. We have a strong balance sheet and we have strong platforms in all our business areas – infrastructure, new residential construction, renovation. Overall, we therefore expect to generate an adjusted consolidated EBITDA between € 450 and 470 million.

Heimo Scheuch

Heimo Scheuch

CEO

Contact

Claudia Hajdinyak

Claudia Hajdinyak

Head of Corporate Communications

Wienerberger AG

+43 664 8283183 Send e-mail

Investor Relations

Wienerberger AG

+43 1 60192 10221 Send e-mail