Heidelberg Materials' revenue hits all-time high

Heidelberg Materials has reported a 13 per cent YoY increase in group revenue to an all-time high of EUR21.1bn in 2022. Adjusted profit for the financial year also rose significantly, with adjusted earnings per share up 20 per cent YoY at EUR9.47. Good progress was seen in the company’s decarbonisation programme with specific net CO₂ emissions falling by a further two per cent.

According to the company, higher energy and raw material prices had a significant impact on construction activity in 2022 and therefore on demand for building materials. Price adjustments in all group areas more than compensated for the decline in volumes, but despite good price momentum and strict cost management, Heidelberg Materials could not fully offset the sharp increase in energy and raw material costs compared to the previous year.

The result from current operations before depreciation and amortisation (RCOBD) decreased slightly by 3.5 per cent to EUR3739m (previous year: EUR3875m) (on a like-for-like basis: -5.1 per cent). The result from current operations (RCO) declined by 5.3 per cent to EUR2476m (previous year: EUR2614m) (on a like-for-like basis: -6.1 per cent). 

The profit for the financial year attributable to the shareholders of HeidelbergCement AG amounts to EUR1597m (previous year: EUR1759m). Excluding the additional ordinary result and non-recurring tax effects in the reporting and the previous year, the adjusted profit for the financial year rose by EUR229m to EUR1790m (previous year: EUR1561m).

“We closed 2022 with a very good result thanks to a great finish in the fourth quarter,” says Dr Dominik von Achten, CEO of Heidelberg Materials. “As part of our Customer Excellence Programme, we were able to more than offset the sharp rise in energy costs in the fourth quarter for the first time during the year. Despite the challenging conditions last year, we are on track with all key figures.

“It’s evident that we can only be profitable in the long term by shaping our future as a company in a climate-compatible way, further reducing the footprint of our products and closing material loops. We are making good strides in all areas. Compared with the previous year, we were able to reduce our specific net CO₂ emissions by another -2 per cent. Our CCUS projects launched worldwide are progressing favourably. At our CCS project in Brevik, Norway, we are well on track with the construction of the world's first CO₂ capture plant in our industry, and we look forward to commissioning in 2024,” he added. 

For 2023, the group forecasts further revenue growth (excluding consolidation and exchange rate effects) with the result from current operations expected to reach EUR2.35-2.65bn, compared to EUR2.5bn in 2022.