Wienerberger reports solid HY 2020 results despite Covid-19
- Better performance in Q2 2020 than anticipated
- Production ramped up again in all countries
- HY 2020 Group revenues reached € 1,640 million, EBITDA LFL € 255 million
- Liquidity position further strengthened and financing structure optimized
The Wienerberger Group has delivered solid half-year results despite the negative effects of the Covid-19 pandemic. The health and safety of all our employees, customers and partners along the value chain has been the highest priority for the company during Q2 2020. In this difficult market environment, revenues at Group level reached € 1,640 million (HY 2019: € 1,736 million) and EBITDA LFL amounted to € 255 million (HY 2019: € 290 million). With a 12% decline in revenues (Q2 2019: € 960 million) and a 17% drop in EBITDA LFL (Q2 2019: € 181 million), the second quarter, which was heavily impacted by government-imposed lockdowns in Wienerberger’s key markets mainly during April and May, turned out better than anticipated. Starting in mid-May, Wienerberger managed to ramp up its production again under strict health and safety measures. Demand for Wienerberger’s smart and sustainable solutions returned relatively quickly, benefiting from pent-up demand accumulated during the lockdown. The month of June, in particular, saw a strong demand level due to such catch-up effect. However, we do not see a similar trend for the rest of the year. As of today, Wienerberger has resumed production in all relevant countries and benefits from the accelerated digitalization of the supply chain which has been a great advantage during the crisis.
This crisis has shown that Wienerberger has positioned itself strongly in recent years. Through our continuous optimization measures and our strong focus on sustainability, innovation and digitalization, Wienerberger has been able to optimize its product portfolio and significantly improve its operational leverage. With the swift implementation of a specific program of measures to counter the effects of the Covid-19 crisis, we were able to maintain our performance at a robust level. We have consistently pursued our strategy and by doing so we have laid excellent foundations for further growth following the crisis.
Successful measures in Q2 2020
Wienerberger has also been able to secure its strong liquidity base and further optimize its financing structure in Q2 2020. The successful placement of a 5-year € 400 million corporate bond with a coupon of 2.750% allows the company to capitalize on opportunities arising from the Covid-19 pandemic and positions Wienerberger for the future. Through cost discipline and strict management of working capital, the Group has maintained a strong liquidity position. To ensure smooth operations in the remainder of 2020, Wienerberger has successfully implemented stringent health and safety standards throughout the entire supply chain.
Due to a recovery in Q2 that was stronger than initially expected, Wienerberger has updated its outlook for 2020. Although volumes returned relatively quickly in Q2, driven by pent-up demand accumulated during the lockdowns, the level of visibility in relation to volumes for the second half of 2020 remains limited. The company foresees a softening from the high levels seen in June as soon as the pent-up demand from April and May is settled. Currently Wienerberger expects for the full year 2020, that the different end markets in the various geographics could see a decline of up to -15%.
We should be able to outperform such market developments and under the assumption that there will be no further significant lockdowns in our key markets and that pricing remains robust, we now expect EBITDA LFL for 2020 to be in the range of € 460-480 million.
The key financials indicated in this press release are based on preliminary, unaudited results. The results of the half-year 2020 and our guidance on the outlook will be published on August 12, 2020 at 7:30 a.m. CEST.