HeidelbergCement reports 7% rise in revenues in 1H19

Germany-based HeidelbergCement posted revenues of EUR9.2bn, representing a seven per cent increase YoY from EUR8.4bn in the 1H18.

However, market dynamics weakened in the second quarter of the year and as a result, the group’s cement and clinker sales volumes decreased by 1.4 per cent to 61Mt (1H18:61.9Mt).  Excluding consolidation effects from the sale of the Maddaloni and Spoleto cement plants in Italy, business activities in Ukraine, and the white cement business in the USA and Egypt, sales volumes were down on the previous year’s level by just 0.1 per cent. On a comparable basis, deliveries in the the Western and Southern Europe, North America, and Africa-Eastern Mediterranean Basin Group areas increased slightly, according to the company.

Moreover, the group saw material costs rise by 10.9 per cent YoY to EUR3.875bn and personnel costs by 6.6 per cent to EUR1.591m.

Results from current operations before depreciation and amortisation advanced from EUR1.195bn in the 1H2018 to EUR1.446bn in the 1H19 with margins improving from 14.2 to 15.7 per cent over the same period.   The company attributes the rise to a growth in sales volumes, successful price increases that more than offset the rise in costs and the initial application of IFRS 16 leases accounting standard.

EBIT was down from EUR782 in the 1H18 to EUR634m in the 1H19 and profit before tax fell from EUR628m to EUR450m in the first six months of 2019.

Net income from continuing operations declined to EUR300m in the 1H19 from EUR440m in the 1H18. Larger net losses from discontinued operations from the Hanson Group shaved a further EUR9m off, to result in profit for the period of EUR291m in January-June 2019, down from EUR435m.