HeidelbergCement’s positive sales development in the first quarter of 2021 continued in the second quarter, leading to a 9.7 per cent YoY increase in cement and clinker sales volumes to 61.8Mt in the first half of 2021 from 56.3Mt in the year-ago period. Deliveries of aggregates advanced by 7.5 per cent YoY to 145Mt from 134.8Mt in the 1H20 while ready-mixed concrete sales in the 1H21 were up by 8.3 per cent YoY to 23.5Mm3 from 21.7Mm3 in the 1H20. Asphalt deliveries increased by 11.5 per cent YoY from 4.3Mt to 4.8Mt over the same period.

Group revenues advanced by eight per cent to EUR8938m in the 1H21 from EUR8254m in the 1H20. Excluding consolidation and exchange rate effects, the increase was 11.4 per cent. Changes in the consolidation scope and exchange rate effects both negatively impacted on revenue – by EUR25m and EUR211m, respectively.

Results from current operations before depreciation and amortisation (RCOBD) improved by 22.6 per cent to EUR1720m in the 1H20 from EUR1404m in the year-ago period thanks to the good operational development and particularly the significant sales volume growth in all business segments. Excluding consolidation and currency effects, there was a 26.4 per cent increase.  The RCOBD margin increased by 224 basis points to 19.2 per cent from 17 per cent in January-June 2020.

Results from current operations was up by 52.7 per cent YoY to EUR1084m, although excluding consolidation and currency effects, the increase amounted to 57.4 per cent. In the 1H20 the result from current operations stood at EUR710m.

The result for the period amounts to EUR825m (previous year: EUR-3,095m). The profit attributable to non-controlling interests increased by EUR31m to EUR70m (previous year: EUR39m). Therefore, the group share amounts to EUR755m (previous year: EUR-3,133m). Excluding the additional ordinary result, the group share rose by 70.6 per cent to EUR608m from EUR356m in the year-ago period.

In addition, HeidelbergCement decreased its net debt by EUR1.5bn to EUR7.5bn in the 1H21. This has resulted in a drop in gearing level from 61.4 per cent the 1H20 to 48.5 per cent in the 1H21.

“HeidelbergCement has closed the first half of 2021 with an excellent result,” said Dr. Dominik von Achten, Chairman of the Managing Board. “We have achieved record values in relevant key figures. Our ‘Beyond 2020’ strategy is taking effect: we are making good progress in all areas. Against this background, we have announced an extensive share buyback programme for the first time in the company's history. With this, we want our shareholders to participate appropriately in the economic success of our company.”

Portfolio optimisation programme continues
In May 2021 HeidelbergCement signed an agreement on the sale of Lehigh Hanson's cement, aggregates, ready-mixed concrete, and asphalt business activities in the US West Region (California, Arizona, Oregon, and Nevada) to the US company Martin Marietta Materials, Inc. The sales price amounts to US$2.3bn in cash. Closing of the transaction is expected in the 2H21. The aim is to further expand vertical integration in the four key regions of Canada, the Midwest, the Northeast and the South through selected acquisitions and capacity expansion projects.

Improved outlook
Following the results of the January-June 2021, HeidelbergCement is raising its outlook for the full-year of 2021. It now expects a strong increase in result from current operations before depreciation and amortisation and result from current operations, excluding exchange rate and consolidation effects in each case for the full year.

The company forecasts a rise in return on invested capital (ROIC) to clearly above eight per cent for 2021.

“The market environment in the construction sector is and remains good,” said Dr von Achten. “We see continued good demand in private residential construction and infrastructure in all regions. At the same time, raw material, energy and transportation costs have increased significantly in recent months. Nevertheless, in the short and medium term we expect the various country-specific economic stimulus programmes to continue to have a positive impact on construction activity and thus on our sales volumes. We are optimistic about the future.”