Wienerberger continues to deliver record growth
- Revenues increased by 6% to € 2,656 million
- EBITDA LFL up by 27%
- Net profit improved by 64% to € 206 million
Outlook for 2019
- Forecast for 2019 EBITDA LFL confirmed at € 570-580 million
The Wienerberger Group, the leading provider of innovative building and infrastructure solutions with international operations, successfully advanced the implementation of its value-creating growth strategy in the first three quarters of 2019, generating a significant increase in both revenues and earnings.
Following our successful performance in recent quarters, we once again achieved highly satisfactory rates of growth. The increasing percentage of premium products and smart system solutions in revenues proved to be a crucial factor underpinning our success in the first nine months.
This strong performance is attributable, above all, to progress achieved in the transformation of the Wienerberger product and service portfolio and the implementation of performance-enhancing Fast Forward projects.
We are well on track toward closing our 200th anniversary year with record results.
During the first nine months of 2019, despite broadly flat underlying markets Wienerberger delivered a significant 6% increase in revenues at Group level to € 2,656 million, after € 2,495 million in the same period of the previous year. This development was primarily due to the strong focus on premium product solutions. In the reporting period, EBITDA LFL grew by 27% to € 457 million (up from € 360 million). Operating cash flow reflected the strong underlying performance and increased by 87% to € 200 million. The Fast Forward program generated a contribution to earnings in the amount of roughly € 35 million in the first nine months, with total savings amounting to € 55 million since program initiation. The Group’s net profit rose by 64% to € 206 million compared to € 126 million in the first nine months of 2018.
Revenue growth in all Business Units
Each of Wienerberger’s three Business Units reported growth in revenues during the first three quarters of 2019. Wienerberger Building Solutions performed extremely well, recording 8% growth in revenues to €1,651 million and a 28% rise in EBITDA LFL to € 349 million. At Wienerberger Piping Solutions, the improved product mix and an optimized cost position led to growth in revenues (+3% to € 747 million) and earnings (EBITDA LFL +42% to € 81 million) in the first nine months of the year. Despite weaker than expected housing markets, the North America Business Unit recorded 10% revenue growth to € 258 million; EBITDA LFL came to € 26 million (after € 29 million).
Outlook for 2019
Given its strong market position and the successful implementation of strategic growth projects, the Wienerberger Group expects to see further profitable growth during the rest of the year. Wienerberger therefore confirms its forecast of € 570-580 million in EBITDA LFL for 2019 as a whole.
For the complete report on the first nine months of 2019, click here.