Wienerberger’s Q2 2021 performance at record level
- Strong rebound from Covid-19 impacted 2020, with Q2 2021 EBITDA LFL expected to exceed € 198 million
- H1 2021 EBITDA LFL expected to exceed € 305 million, +20% vs. H1 2020
- EBITDA LFL guidance for 2021 upgraded to a range of € 620 to € 640 million
Vienna – Ahead of issuing its half year results, the Wienerberger Group reports strong Q2 2021 performance driven by rebound of activities in all core markets, albeit with June’s financials still to be finalized. Wienerberger’s EBITDA LFL is expected to exceed € 198 million for Q2 2021 confirms our resilient business model, and also reflects a degree of catch-up following unfavorable weather conditions in the first quarter. Overall, EBITDA LFL for H1 2021 is expected to be more than 20% ahead of the same period in the previous year. Wienerberger will publish its final H1 2021 results on Wednesday, August 11, 2021.
Wienerberger continues to see a general recovery in most of its markets to pre-Covid-19 levels. New residential housing demand in Western Europe is moving towards a more robust level, offsetting more moderate performance in Eastern Europe. Renovation activity levels are very strong across all Wienerberger’s key markets, although there is an expectation of on-site labor shortages over the coming months in 2021. Price increases in all markets are in line with expectations.
In Wienerberger Piping Solutions, both the infrastructure and in-house segments have been able to capitalize on competitive advantages resulting from excellent supply chain management and procurement initiatives despite challenging raw material pricing and availability. Overall, Q2 performance reflects strong volumes in all markets.
The North America Business Unit has continued on its growth path supported by a positive market environment in both new build and infrastructure; growth is expected to flatten in the second half of the year. Wienerberger is pleased with the constructive dialogue with the appropriate authorities in relation to the proposed acquisition of Meridian Brick. Good progress continues to be made and closing of the transaction is expected over the course of Q3 2021.
Outlook for 2021
Wienerberger expects the positive developments to continue in the second half of 2021 and increases its EBITDA LFL guidance to a range of € 620 to € 640 million for FY21 up from € 600 to € 620 million at the beginning of the year. The upgrade is primarily driven by smaller than initially expected raw material pricing impact in Wienerberger Piping Solutions resulting from excellent supply chain management and procurement initiatives. At the same time, the high volumes achieved in the first half of the year, especially in the infrastructure and renovation markets, are expected to moderate to a certain extent during the second half of 2021. In general, Wienerberger expects the mostly positive market environments to prevail and therefore looks to the future with optimism.