Heidelberg Materials sees revenue dip 8% YoY in 1Q24

Heidelberg Materials has reported an eight per cent YoY decline in revenue to EUR4488m in the opening quarter of 2024. According to the company, the fall was the result of lower sales volumes due to poor weather conditions in key regions and a reduced number of working days in the quarter, although these factors were partially offset by positive price momentum in the individual core markets. The result from current operations before depreciation and amortisation (RCOBD) over the first quarter declined by EUR14m, or 2.6 per cent, to EUR542m. Meanwhile, the result from current operations (RCO) contracted by EUR27m, or 10 per cent, to EUR232m. 

The 1Q24 saw a substantial decline in cement volumes due to weak construction demand in Europe. The company’s shift towards low-carbon products, leading to the production of cement with reduced clinker content, has also brought about adjustments as several plants with clinker production at the Hanover plant due to end in the 2H24. 

The company’s decarbonisation roadmap continues to gain momentum with the launch of two new products, evoBuild® and evoZero®. According to the company, evoZero® is made possible by the world's first industrial-scale carbon capture facility at the Brevik cement plant in Norway. Mechanical completion of the facility is scheduled for the end of the year. The first quarter also saw funding of up to US$500m for its CCUS project at the Mitchell plant in Indiana, USA.

“Despite declining revenues compared to a strong prior-year quarter, we have further increased our profitability. This was in particular due to the very good start to the year in North America and strict cost management,” said Dr Dominik von Achten, chairman of the managing board of Heidelberg Materials. “The good start allows us looking forward confidently to the rest of the year. Against this backdrop, we confirm the outlook for the full year 2024.”

For the full year 2024, the company expects demand in the construction sector to increasingly stabilise at a low level. Against this backdrop, it confirms its outlook for the 2024 financial year, anticipating a result from current operations of EUR3.0-3.3bn with ROIC expected to be around 10 per cent.