Wienerberger delivers record results for the first three quarters of 2021
- Excellent performance across all business units, with strong organic growth focused on innovative, digital, and sustainable system solutions
- Record financial performance for first three quarters: external revenues of € 2.9 billion (+14%), EBITDA LFL of € 509.1 million (+19%) and net profit of € 227.3 million
- Outperforming plan to achieve 2023 sustainability targets
- Value-enhancing acquisitions position Wienerberger for further growth
Outlook for 2021
- Wienerberger anticipates a new record year surpassing the 2019 pre-crisis level
- Guidance for EBITDA LFL increased to € 650 million
- Additional M&A EBITDA contribution of approx. € 15 million expected in 2021
Vienna, November 9, 2021 – In the third quarter of 2021, following the record performance in Q2 2021, the Wienerberger Group delivered continued strong momentum, surpassing the highly successful third quarter of 2020. During the first nine months, revenues increased to € 2.9 billion, up by 14% year-on-year (2020: € 2.5 billion). Excellent supply chain and energy price management contributed to further EBITDA improvements despite challenging raw material price developments. EBITDA LFL grew by an impressive 19% to € 509.1 million (2020: € 428.2 million), supported by proactive margin management and strict cost discipline. Overall, Wienerberger delivered a strong financial performance, closing out the first three quarters of 2021 with a record net profit of € 227.3 million.
The record Q3 net result of € 114.7 million corresponds to a 58% increase compared to the previous year confirms the success of our growth strategy and shows that, after a strong first half of the year, we reacted appropriately in the challenging environment of recent months. Thanks to continuing organic growth focused on digitalization, innovative and sustainable system solutions for the entire building envelope, we have a full order book, and our plants are working at a high level of capacity utilization. Especially in view of climate change, smart solutions for resource-efficient construction and renovation are continuously gaining in importance. As a global market leader, we want to make an effective contribution by providing sustainable products for the building envelope.
Focus on sustainability and organic growth
Given the most recent manifestations of climate change, Wienerberger further intensified its implementation of its sustainable growth strategy in line with the Group’s ambitious ESG targets. By focusing on its core segments of new build, renovation and infrastructure, the Wienerberger Group reaffirmed its excellent market position across all of its Business Units. Wienerberger continues to pursue organic growth through future-oriented investments. Moreover, Wienerberger has made three strategically valuable and financially attractive acquisitions during the course of 2021 to date. The acquisition of FloPlast in Great Britain and Cork Plastics in Ireland, for example, marked another step forward on the Group’s successful growth path and will increase its market share in the highly attractive European renovation market. At the same time, Wienerberger is accelerating its transformation into a provider of full-range solutions by combining its own portfolio of roofing products with FloPlast’s roofline products, rainwater and water drainage systems. All entrepreneurial activities continue to be in line with Wienerberger’s sustainability targets and are subject to clear ESG criteria. With its focus on decarbonization, the circular economy, and biodiversity, Wienerberger is on track to exceed its plan to reach its 2023 sustainability targets and at the same time actively supports the European Green Deal and sets the course for the future.
The recently closed acquisition of Meridian Brick in the USA will put Wienerberger in an even better position to take advantage of the high demand in the new build and renovation segments. Meridian Brick is not only a perfect fit for the Group’s current portfolio of facade solutions but is committed to the same targets as Wienerberger with its focus on sustainability, innovative solutions, and digital business models – all intended to create value for the future and improve people’s quality of life.
Performance of the Business Units
The Wienerberger Building Solutions Business Unit benefited in almost all of its core markets from a sustained high level of activity in the new build and renovation segments throughout the summer months and beyond. The growing demand was positively reflected in all product segments, above all thanks to lively renovation activity and sustained high demand in new residential construction. A clear cost management strategy, continuous process optimization combined with innovative system solutions, and price adjustments to cover cost inflation provided the basis of the Business Unit’s strong performance. Overall, Wienerberger Building Solutions generated revenues of € 603.5 million (2020: € 567.3 million) and contributed EBITDA LFL in the amount of € 139.8 million (2020: € 127.9 million) in Q3 2021.
The Wienerberger Piping Solutions Business Unit also continued on the growth path of the first half of 2021. Despite persistent challenges encountered in the procurement market, which softened slightly over the summer, demand for innovative infrastructure solutions and system solutions for in-house applications remained high. In its pipe business, Wienerberger minimized the negative impact of rising plastic granulate prices through active margin management. Wienerberger successfully managed its supply chains and benefited from its procurement policy, which ensured an uninterrupted supply of raw materials. Overall, the Business Unit generated external revenues of € 312.2 million in Q3 2021, up by 26% year-on-year (2020: € 248.4 million). The profitability of the plastic pipe segment was further improved, with Q3 EBITDA LFL growing by 24% to € 37.3 million (2020: € 30.1 million).
Despite the fact that restrictions were again imposed in some regions on account of the Covid-19 pandemic, the North America Business Unit continued to deliver a strong performance, boosted by high demand, throughout the summer. This development was driven, above all, by very high demand for facade solutions as well as a consistently strong performance of the plastic pipe business. Thanks to targeted inventory management, the Business Unit reports excellent results for the first nine months of the year in both Canada and the United States. Third-quarter revenues came to € 111.7 million (2020: € 87.9 million), once more surpassing the previous record of the second quarter of the reporting year. At € 23.6 million, Q3 EBITDA LFL increased substantially by 46% over the same period of the previous year (2020: € 16.1 million) and also set a new record.
Outlook for 2021
Wienerberger is on track for a new record year with results above the levels observed in 2020 and 2019. This is contingent on the positive performance of the three Business Units being maintained and generating additional earnings growth in the fourth quarter. Value generated within the company along with Wienerberger’s successful transformation into a full-range provider of smart system solutions for the entire building envelope will support earnings growth in the fourth quarter.
The general increase in cost inflation and the availability of raw materials continue to have an impact on Wienerberger’s financial performance. Despite this, Wienerberger has exercised strong control over rising input costs in 2021 as a result of resilient supply chain structures and a successful hedging policy. As a result of price adjustments implemented in the construction solutions segment, Wienerberger was able to absorb cost inflation or pass on a large part of rising input costs and protect profitability both for 2021 and upcoming years.
Wienerberger expects that the self-help program, which includes further measures to improve operating performance, will generate an EBITDA improvement of € 40 million. Due to the successful growth Wienerberger is therefore raising its total EBITDA LFL guidance for 2021 to € 650 million. This excludes an additional EBITDA contribution from M&A of approximately € 15 million expected in 2021.
For the complete report on the third quarter of 2021, click here.