- Wienerberger is growing in all business segments and regions
- Impressive 38% revenue growth to € 2,572 million
- 79% increase in operating EBITDA to € 545 million
- Successful integration of the acquisitions made in Europe and North America
Outlook for 2022
- Further growth expected in the second half of the year due to innovation and system solutions
- Operating EBITDA guidance for 2022 of > € 900 million
Vienna – Following the Trading Statement issued on July 1, 2022, Wienerberger is presenting the final results of the first half of 2022. In the second quarter, the company again recorded high demand and full order books in all divisions and regions, with all production sites operating at full capacity. Overall, Wienerberger generated a significant 38% increase in revenues at Group level to € 2,572 million, while the Operating EBITDA increased to € 545 million, up by 79% from the first half of 2021.
Thanks to its resilient business model, Wienerberger succeeded in delivering a strong performance in the first half of 2022 in a challenging environment characterized by geopolitical instability, interest rate increases, especially in Eastern Europe, and the associated cost inflation and rising public debt.
The Group’s excellent performance is based on the hard work of all our employees, the successful transformation of our business model and our innovative strength in all areas of the Wienerberger Group. Today, our operations are more diversified in terms of geography and end markets than in the past. Given our significant exposure to the renovation and water infrastructure markets, we clearly have become more resilient. We are determined to further pursue this course, following our proven growth strategy focused on innovation, system solutions and sustainability. Thanks to these consistent efforts, which are essential to develop sustainable and energy-saving solutions, we are providing a valuable contribution to the climate targets.
The performance in the first half of 2022 was driven by high demand, ongoing efficiency-enhancing measures, excellent procurement management, and fast progress made in the integration of the companies acquired during the previous year, which delivered substantial contributions to earnings.
In the last weeks and months, Wienerberger has worked intensively to secure the energy supply at its 220 production sites. To this end, the company has drawn up emergency plans and worked closely with the national authorities. Based on our ambitious ESG strategy, we are accelerating our capital expenditure program aimed at the conversion of our production plants to sustainable energy sources, such as electricity, hydrogen, biogas, and synthetic gas. Our efforts are focused on local independent energy procurement and resources.
Performance of the Wienerberger Business Units
In the first half of 2022, Wienerberger Building Solutions delivered extremely satisfactory results although the residential housing markets were slightly declining (minus 2% to minus 5%). On the basis of high demand and a full order book the Wienerberger Building Solution Business generated strong growth of revenues and earnings. In the first six months of the year, external revenues rose by 22% to € 1,358.3 million (2022: € 1,115.4 million). Operating EBITDA increased steeply by 56% to € 341.4 million (2021: € 218.8 million) over the same period.
The Wienerberger Piping Solutions business unit delivered a very good performance in the first half of 2022 and continued its successful growth trend. In the field of infrastructure, the business unit again recorded strong demand for all-in system solutions for water and energy management. Solid demand at a satisfactory level was also seen in the in-house solutions segment. Overall, external revenues generated by Wienerberger Piping Solutions increased by 30% to € 742.2 million (2021: € 569.7 million), while operating EBITDA improved by 56% to € 92.7 million (2021: € 59.4 million).
Operating in a favorable market environment, the Wienerberger North America Business Unit again reported an outstanding increase in revenues and earnings in the first half of the year. This excellent result is attributable to consistently strong organic growth in the plastic pipe business, good performance of brick activities, and satisfactory contributions from the acquisition of Meridian Brick. Revenues more than doubled to € 470.6 million (2021: € 180.2 million) in the reporting period. Operating EBITDA reached an extraordinarily high level at € 111.2 million (2021: € 26.8 million).
Outlook for 2022
Wienerberger expects a stable development in the renovation segment in 2022. Substantial funds are available here to increase the energy efficiency of the aging building stock and thus reduce CO2 emissions (EU Green Deal as well as national initiatives). We also expect a similar stable development in the infrastructure segment, as additional funds are also available for the modernization and repair of water and energy networks in Europe and North America. Renovation and infrastructure accounted for 51% of Wienerberger’s total market exposure in 2021. The new residential housing market is currently underbuilt, while demand for housing remains high. In light of the challenging market environment, Wienerberger expects the new build markets in Europe and North America to decline slightly in the second half of the year depending on individual markets up to minus 5% similar to the development in the first half of the year.
"We are fully aware of the fact that financial markets currently anticipate recessionary trends in the overall construction markets. However, our underlying business is performing well. We do not expect the geopolitical situation to ease in the second half of the year, and the impact on the economy will continue to be noticeable. At Wienerberger, we are prepared for all scenarios, can react swiftly to changes in the market environment and therefore invest consistently in the development of our innovative solutions for sustainable construction, refurbishment and sustainable water infrastructure. Through our focus on innovation and system solutions, we will continue to generate strong organic growth.”
Wienerberger successfully diversified its business model in recent years and has thus become far more resilient than in the past. As a result of the measures implemented in recent months and the continuing good development of business, Wienerberger guides for a 2022 Operating EBITDA of > € 900 million.
For the complete 2022 Half-Year Report, please visit here.