HeidelbergCement buoyed by FY20 results

HeidelbergCement closed the 2020 financial year with top results in key figures. Group revenue decreased by 6.6 per cent to EUR17,606m ( previous year: EUR18,851m) in comparison with the previous year. 

On a like-for-like (LfL) basis, the decline amounted to 4.6 per cent. The EUR601m decrease in HC Trading's revenue due to the decision to significantly reduce fuel trading with third-party customers contributed significantly to this decline.

Results from current operations before depreciation and amortisation increased by 3.5 per cent to EUR3707m (previous year: EUR3580m). On a LfL basis, the increase amounted to 6.1 per cent compared to the previous year. In addition to successful price increases and lower energy costs, significant savings from the COPE (COVID Contingency Plan Execution) action plan, launched in February 2020, had a particularly positive impact on the result. Results from current operations rose by 8.1 per cent to EUR2363m (previous year: EUR2186m). On a LfL basis, the increase amounts to 11 per cent. 

In the financial year, the return on invested capital (ROIC) reached already 7.9 per cent (previous year: 6.5 per cent). “We have made considerable progress in 2020 in terms of return on invested capital. This puts us on track to achieve our strategic medium-term target earlier than expected,” said Dr Dominik von Achten. The group aims to achieve a ROIC of clearly above eight per cent by 2025.

Outlook
"The good start to the year confirms our optimistic outlook for 2021," said Dr Von Achten. "There should be tailwind from the partly massive infrastructure programmes in many countries. The private residential construction sector should also continue to grow."