Wienerberger reports record half-year performance for 2021
- Strongest half-year performance in Wienerberger’s history
- Group revenues at € 1,867.5 million (+14%), surpassing previous highs
- Highest EBITDA LFL on record € 308.4 million (+21%)
Outlook for 2021
- Continuation of positive development forecast for all core markets
- EBITDA LFL for 2021 anticipated within a range of € 620 to 640 million
- Acquisition of FloPlast and Cork Plastics is another step towards our transformation into a full-range provider of sustainable solutions
Vienna – Further to the Q2 Trading Statement issued on July 5, 2021, Wienerberger reports its final H1 2021 results, which are the Group’s strongest mid-year results in its history. In the first half of 2021, the Group achieved record revenues of € 1,867.5 million, up by approximately 14% from the previous year’s value (H1 2020: € 1,641.5 million), despite moderate developments in the core markets and a slower return to pre-Covid levels. Wienerberger reported EBITDA LFL of € 308.4 million, corresponding to a 21% increase year-on-year (2020: € 254.1 million). Overall, the Group’s performance surpassed the record values of the first half of 2019 by a significant margin (revenues H1 2019: € 1,736.4 million, EBITDA € 295.7 million).
As our outstanding mid-year results achieved in all three Business Units show, we have emerged from the Covid-19 pandemic stronger than before. We have outperformed the success of our previous record year in 2019 and continued the positive trends of recent years.
In the first half of 2021, Wienerberger also took major strides forward in implementing its ESG targets, which it considers a crucial component of its future success. Heimo Scheuch explains: “Given the most recent manifestations of climate change and torrential rainstorms in large parts of Europe, we continue to pursue our sustainable growth strategy with a special focus on innovation, sustainability and digitalization. With its innovative building material solutions for new build and renovation, Wienerberger is making important contributions to the enhancement of energy efficiency and water management. With its smart infrastructure solutions, Wienerberger is actively contributing to environmental protection, including helping to prevent flash floods in both urban and rural regions.”
Moreover, as the effects of climate change are becoming more noticeable, solid construction methods and energy efficiency are becoming increasingly important. Bricks are the ideal building materials for such criteria due to their ability to regulate the indoor climate. Brick walls keep homes warm in winter and cool in summer and are therefore sustainable and resource efficient.
Heimo Scheuch notes in conclusion: “Our record 2021 mid-year results are attributable, not least, to our successful strategic orientation. In line with past practice, the Wienerberger Group will continue to focus on growth in its core markets and segments. The most recent acquisition of FloPlast in the UK and Cork Plastics in Ireland strengthens our position in water management and renovation. Based on our combined product portfolios, we are able to provide smart and durable solutions in both fields of business.”
Performance of the Wienerberger Business Units
Solid demand in new residential construction in Western Europe enabled Wienerberger Building Solutions to offset more moderate growth in Eastern Europe. Additionally, the Business Unit took advantage of intensive renovation activities in all of its key markets. Overall, Wienerberger Building Solutions delivered a stable performance, with revenues up by 10% to € 1,115.4 million (H1 2020: € 1,014.4 million). EBITDA LFL of € 219.2 million significantly exceeded the prior year period’s level of € 184.4 million.
The second-quarter performance of Wienerberger Piping Solutions was marked by exceptionally high sales volumes in all markets. Thanks to excellent supply chain management and successful procurement initiatives, the Business Unit was able to meet high demand from both infrastructure projects and the in-house segment at all times strengthening its market position as a reliable partner, despite challenging raw material prices and availability. Wienerberger Piping Solutions reported a 21% revenue increase to € 569.7 million (H1 2020: € 470.3 million). EBITDA LFL improved by 13% to € 60.0 million (H1 2020: € 53 million).
The North America Business Unit continued to deliver strong growth, supported by a positive market environment in new build and very high demand in the infrastructure segment. Revenues grew by 16% to € 180.2 million (H1 2020: € 155 million), while EBITDA LFL matched its first-quarter level with another historic record at € 29.2 million (H1 2020: € 16.8 million). Moreover, Wienerberger continues to make good progress with the relevant authorities to gain the required clearances for its acquisition of Meridian Brick, and therefore expects the transaction to close in the third quarter of 2021.
Outlook for 2021
“Based on our strong performance in the first half of 2021, we anticipate a positive second half of the year and therefore confirm the upward revision of our guidance for EBITDA LFL to € 620 to €640 million for 2021, up from € 600 to €620 million”, explains CEO Heimo Scheuch. The high sales volumes of the first half of the year, especially in the infrastructure and renovation markets, are expected to moderate to a certain extent in the second half. Overall, Wienerberger foresees a continuation of the mostly positive development of its three Business Units. “Additionally, value creation from our announced acquisitions and the success of our ongoing transformation into a full-range provider of smart system solutions, especially in energy and water management, will continue to drive earnings growth in the second half of the year”, concludes Heimo Scheuch.
For the complete report on the first half of 2021, click here.