The Wienerberger Success Story
Wienerberger continues on its growth path. Learn more about the outstanding achievements of our company and how we can contribute toward shaping the future of the building materials industry.
As an international supplier of building material and infrastructure solutions, Wienerberger operates production sites in 30 countries of the world. In recent decades, we have evolved from an Austrian brick producer into an international building materials group. Taking the lead in terms of technology and innovation, we are advancing the development of the entire sector.
Wienerberger reports strong growth in 2018
Wienerberger continued to grow throughout 2018: We generated revenues of over EUR 3.3 billion, the highest ever in the history of the group. Our EBITDA increased for the sixth consecutive year, standing at EUR 442.6 million at the end of the year. This shows that the consistent implementation of our growth strategy is producing the desired results. We closed the year with a significantly increased net profit of EUR 133.5 million, an eleven-year high.
Our successful development is reflected in all business areas.
- The European brick business continued to perform very well in 2018. The Clay Building Materials Europe Division generated a 7% increase in revenues and a 10% increase in EBITDA. Once again, the Eastern European market was the main growth driver.
- The pipe business benefited from a sound market environment. The Pipes & Pavers Division succeeded in increasing its revenues by 6% and its EBITDA by 12%. The plastic pipe business generated positive results in both Western and Eastern Europe. Strong earnings growth was seen in the concrete paver business, and the restructuring of the ceramic pipe business was successfully concluded.
- The North America Division delivered significant growth. Among other factors, last year’s acquisition of a brick producer in Mississippi had a positive impact. The Division’s revenues remained stable, while EBITDA grew substantially by 35%.
A sustainable growth strategy for the future
Our strong balance sheet provides the basis for further growth, as it enables us to invest in high-margin companies and profitable fields of business. Our goal is clear: We want to achieve a sustainable increase in the value of the Wienerberger Group in ecological, social and economic terms. Alongside organic growth and portfolio optimization measures, acquisitions are an important component of the Wienerberger strategy. Operational excellence is another crucial factor: With our Fast Forward 2020 program, we are improving our performance throughout the Group – by EUR 20 million in 2018 alone.
Wienerberger has set itself the goal of improving people’s quality of life. To this end, we are designing sustainable building systems, safe and secure supply networks, and high-quality paver systems. The most important success drivers are our customer proximity and our consistent pursuit of innovation and digitalization.
Innovative solutions for the entire process
We are continuously developing new products and services for our customers and partners. Our activities cover the entire process, from design to construction to the re-use of materials. The masonry robot developed by Fastbrick in Australia, which we are testing for the European market, is an excellent example. Moreover, we support our customers during the project planning phase by providing them with smart tools, such as the virtual reality app for home builders, complete with VR goggles, or our web platform for roofers.
Innovation plays a crucial role in everything we do. Wienerberger’s innovation ratio stands at 29%, which means that we generated over 29% of our revenues with products introduced during the past five years. Every year, we invest tens of millions in research and development.
Global trends as an opportunity
We regard megatrends, such as digitalization, as the key to further improving our customer relations and our business processes. Even today, Wienerberger plays a leading role in shaping the digital transformation of the building materials industry. With over ten mission visits to our range of digital media every year, digital communication has become our most important channel. Moreover, innovative technologies enable us to explore new fields of business. In the Czech Republic, for instance, the first completely digital e4-house is under construction. It is being designed and implemented by means of Building Information Modelling (BIM).
Given that in the future more and more people will live in cities, urban design is another focus area of our activities. Global developments, such as urbanization and migration, create increasing demand for residential and office space. Together with our customers and partners, we contribute our know-how to the design of tomorrow’s smart cities by developing innovative system solutions in the fields of water supply, waste water disposal, building facilities and electric installations. This is how we create affordable housing for people to feel at home in.
Two pioneering Wienerberger projects
Wienerberger shapes the future of residential and office construction. One of our model projects has been fully operational in the 22nd district of Vienna since mid-2017. “Baufeld D22” at Seestadt Aspern is the first multi-story residential project in Austria built entirely with mineral, monolithic brick walls. The bricks used are our most recent Porotherm W.i precision-ground bricks with high thermal insulation properties.
Another example is “The Brick”, a high-rise brick building. As part of the “Biotope City”, Vienna’s most recent urban development project in the 10th district, it will be Wienerberger’s new corporate headquarters. This energy-efficient building with a green façade is to be completed in 2020. In its final stage, the project will comprise about 900 apartments, offices, shops and educational facilities.