HeidelbergCement announces a 8% fall in revenues for 9M20

HeidelbergCement announced its January-September 2020 revenue decreased by 7.9 per cent to EUR13,140m in comparison with the previous year's EUR14,273m. Excluding consolidation and exchange rate effects, the decline amounted to 6.9 per cent. Changes to the scope of consolidation of EUR4m and exchange rate effects of EUR159m had a negative impact on revenue.

Group-wide cement and clinker sales volumes fell by 4.7 per cent to 90.1Mt (previous year: 94.5Mt) in the first nine months. Excluding consolidation effects, the decline amounted to four per cent. On a like-for-like basis, deliveries in the Africa-eastern Mediterranean Basin Group area recorded a solid increase. In northern and eastern Europe-central Asia, sales volumes remained at the previous year’s level. Volumes declined in the other group areas. 

Deliveries of aggregates were 5.3 per cent below the previous year’s level at 220.8Mt (previous year: 233.3). A slight increase in sales volumes in northern and eastern Europe-central Asia stood in contrast to significant decreases in volumes in western and southern Europe, Asia-Pacific, and Africa-eastern Mediterranean Basin, while North America remained only slightly below the previous year. Excluding consolidation effects, sales volumes declined by 4.6 per cent.

Sales volumes of ready-mixed concrete fell by 9.2 per cent to 34.4Mm³ (previous year: 38Mm³). With the exception of North America, where deliveries were slightly above the previous year, volumes declined in all group areas. Excluding consolidation effects, deliveries of ready-mixed concrete declined by 9.5 per cent. Asphalt deliveries decreased by 3.6 per cent to 8.1Mt (previous year: 8.4Mt). Adjusted for consolidation effects, deliveries fell by five per cent. 

The result from current operations before depreciation and amortisation (RCOBD) grew by EUR119m or 4.6 per cent to EUR2731m (previous year: EUR2612m). Excluding consolidation and exchange rate effects, the operational increase amounted to EUR156m, 6.1 per cent above the previous year.

In the first 9M20, despite the difficult market environment, the cash inflow from operating activities of continuing operations rose by EUR447m to EUR1489m (previous year: EUR992m). The cost savings, lower investments, and active management of current asset items as part of the COPE action plan had a noticeable impact. As at 30 September 2020, net debt amounted to EUR7.9bn (previous year: EUR9.7bn).

Dr Dominik von Achten, chairman of the Managing Board of HeidelbergCement, said: "HeidelbergCement has achieved an excellent result in the third quarter of 2020. In an environment that continues to be characterised by major regional differences and great uncertainty, we were able to increase EBITDA by 17 per cent in comparison with the previous year."