Wienerberger noted a strong increase in turnover across the Group (+38%), reaching €2.572 million, while operating EBITDA climbed to €545 million, i.e. a leap of 79% compared to the first half of 2021.
Highlights
- Widespread growth of Wienerberger across all regions and business lines
- Strong growth (+38%) in turnover, which stands at €2.572 million
- Operating EBITDA up 79% at €545 million
- Successful integration of acquisitions made in Europe and North America
Outlook for 2022
- Continued growth expected in the second half thanks to innovation and system solutions
- Expected operating EBITDA for 2022 > €900 million
Thanks to the resilience of its business model, Wienerberger is delivering a solid performance in the first half of 2022 despite a difficult environment characterized by geopolitical instability, rising interest rates, particularly in Europe, as well as soaring costs and the resulting public debt.
For Heimo Scheuch, CEO and Chairman of the Board of Wienerberger AG: “The Group owes its excellent performance to the hard work of all our employees and the successful transformation of our business model, not to mention our strength in innovation in all the sectors in which we operate. Today, our activities are more diversified in terms of outlets and geographical distribution. Given our strong exposure to the renovation and infrastructure markets in the water sector, we have undoubtedly gained in resilience. We are determined to continue on this path, with a proven growth strategy focused on innovation, system solutions and sustainability. These sustained efforts, which are essential to developing sustainable and energy-efficient solutions, allow us to make a useful contribution to achieving climate objectives. »
The performance in the first half of 2022 benefited from strong demand, the implementation of efficiencies, excellent procurement management and the rapid and efficient integration of the companies acquired last year, including the profit contribution was substantial.
For several weeks/months, Wienerberger has been working tirelessly to secure the energy supply of its 220 production sites. To this end, the company has developed contingency plans and is working closely with the states. In line with the ambitions of our ESG strategy, we are accelerating our investment program to convert our production plants to renewable energy sources such as electricity, hydrogen, biogas and syngas. We favor a local and independent energy supply.
Performance of Wienerberger Business Units
During the first half of 2022, Wienerberger Building Solutions posted extremely satisfactory results despite a slightly declining housing market, from -2% to -5%. Thanks to strong demand and a well-filled order book, the Wienerberger Building Solutions business recorded strong growth in sales and profits. In the first six months of the year, external revenue grew by 22% to €1.358,3 million (2021: €1.115,4 million). Operating EBITDA increased by 56% to €341,4 million (2021: €218,8 million) over the same period.
The Wienerberger Piping Solutions activity continues its momentum with sustained growth and excellent results in the first half of 2022. In the field of infrastructures, the business unit again recorded strong demand for "all-in-one" systems » combining water and energy management. Overall, external revenue generated by Wienerberger Piping Solutions increased by 30% to €742,2 million (2021: €569,7 million), while operating EBITDA improved by 56 % to stand at €92,7 million (2021: €59,4 million).
Thanks to favorable market conditions, the Wienerberger North America business once again recorded a remarkable increase in sales and profit in the first half. We owe this excellent result to continued strong internal growth in the plastic pipes sector, the good performance of the brick market and the acquisition of Meridian Brick, whose contribution is satisfactory. Turnover more than doubled to €470,6 million (2021: €180,2 million) in the reporting period. Operating EBITDA reached the exceptional level of €111,2 million (2021: €26,8 million).
Outlook for 2022
Wienerberger anticipates a stable development of the renovation sector in 2022. Considerable funds are available to improve the energy efficiency of the aging building stock and thus reduce CO2 emissions (EU Green Deal and other national initiatives). Likewise, we expect stable developments in the infrastructure sector, as additional funds are also available for the modernization and repair of water and energy networks in Europe and North America. Renovation and infrastructure accounted for 51% of Wienerberger's total market exposure in 2021. The new housing market is currently suffering from insufficient supply, while housing demand remains high. Given a difficult environment, Wienerberger anticipates a slight decline in the new build markets in Europe and North America during the second half. Depending on each market, this decline could reach -5%, in line with the first half.
For Heimo Scheuch, CEO and Chairman of the Board of the Wienerberger Group: “We are well aware that financial markets are currently anticipating a downward trend in all construction markets. However, our underlying businesses are doing well. We do not anticipate any geopolitical easing in the second half, and the impact on the economy will remain noticeable. At Wienerberger, we are prepared for any eventuality and able to react quickly to any market developments. We are therefore continuing to invest in the development of innovative and sustainable solutions for construction, renovation and infrastructure in the water sector. It is by favoring innovation and system solutions that we will maintain strong internal growth. »
Wienerberger has managed to diversify its business model in recent years, achieving significant resilience gains. Thanks to the measures implemented in recent months and the continued good development of the business, Wienerberger is targeting operating EBITDA > €2022 million in 900.
The full 2022 half-year report is available at the following address: https://www.wienerberger.com/en.