EQS-News: wienerberger: Q3-results beat expectations

EQS-News: Wienerberger AG / Key word(s): Quarter Results/9 Month figures
wienerberger: Q3-results beat expectations

09.11.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

══════════════════════════════════════════════════════════════════════════

wienerberger: Q3-results beat expectations

Highlights

• Strong results demonstrate the successful strategic orientation with a
focus on innovation and sustainability
• Revenues in a total of € 3,286 million, operating EBITDA
of € 665 million
• wienerberger outperforms its end markets in the third quarter and
exceeds analysts‘ estimates

Outlook 2023

• EBITDA guidance for 2023 confirmed at € 800-820 million
• Focus on innovation, proactive cost management and portfolio
optimization

Vienna, November 9, 2023 – Operating in a persistently challenging
macroeconomic environment, wienerberger successfully held its ground in
the third quarter of 2023, sustaining the good performance of the first
two quarters. Compared to the record-breaking year of 2022, the company
generated strong results, especially in view of the decline in demand in
all relevant end markets, with third-quarter revenues at group level
of € 3,286 million (Q3 2022: € 3,848 million) and operating EBITDA
of € 665 million (Q3 2022: € 820 million). The continuation of the
established self-help program aimed at earnings growth and efficiency
enhancements contributed a satisfactory amount to earnings. These solid
results once more demonstrate the resilience of the sustainable and
diversified business model.

“With a clear focus on proactive cost management, innovation and
ecological solutions for new build, renovation as well as water and energy
management, wienerberger was once again able to successfully maintain its
position in the third quarter and is even better prepared for future
challenges and opportunities. Focusing on the core environmental topics of
decarbonization, the circular economy and biodiversity, solutions
developed by wienerberger provide the necessary tools for affordable and
sustainable construction and renovation. Against this backdrop, we look to
the future with optimism and confirm our 2023 EBITDA targets”, says Heimo
Scheuch, Chairman of the Managing Board of Wienerberger AG.

Performance of the Segments

Europe West: In the first three quarters of the year, external revenues
amounted to € 1,706 million (2022: € 1,923 million). Operating EBITDA came
to € 319 million (2022: € 328 million).

In the new construction segment, the decline in demand continued in the
third quarter due to a lack of affordability as a result of the high level
of interest rates and inflation in previous quarters. wienerberger also
recorded a slight decline in the renovation segment. The flattening curve
in the infrastructure segment in the second quarter continued in the third
quarter and the cost-cutting measures introduced and the steady expansion
of the portfolio led to continued good profitability in this segment.

Europe East: During the first nine months of the business year, external
revenues totaled € 934 million (2022: € 1,187 million). Operating EBITDA
amounted to € 178 million (2022: € 311 million) in the first three
quarters of 2023.

The third quarter of 2023 showed a differentiated picture in the various
countries: Although continued high interest rates and high inflation
slowed demand in the region, there were signs of a slowdown in the
downward trend. Due to the persistently high demand for housing, measures
were taken in individual countries such as the Czech Republic and Poland
to support the construction sector. The countries in south-eastern Europe
were able to increase sales and earnings in both the construction and pipe
business compared to the same period of the previous year.

North America: For the first three quarters of the reporting period,
wienerberger recorded external revenues of € 646 million
(2022: € 737 million) and operating EBITDA of € 168 million
(2022: € 181 million).

As interest rates were raised again in the third quarter, demand cooled
further, especially in the brick business. This development was
particularly noticeable in the Southeast, while demand in Texas and Canada
initially developed better than expected. However, this trend slowed
towards the end of the third quarter. In the pipe business, wienerberger
recorded an increase in infrastructure projects throughout the USA.

2023 Outlook

Based on developments seen to date, wienerberger expects the market
environment to remain as challenging in the last three months of 2023 as
it was during the first three quarters. Demand in the North American
market is projected to remain stable, albeit at a lower level, whereas a
further downturn in Western Europe and increasing stabilization in Eastern
Europe are anticipated. With its constant focus on innovative ecological
solutions, the further enlargement of the product portfolio, and its
value-accretive growth strategy, wienerberger will continue to hold its
own in the future. Given its strong position and its proven resilience,
combined with profitability-increasing measures, the company is confident
of delivering a very solid performance in the 2023 business year and once
more confirms its operating EBITDA target of € 800-820 million.

With the intention to acquire significant parts of the Terreal Group,
wienerberger announced the biggest step in its value-creating growth
strategy in December 2022. Up to now wienerberger has received all
regulatory approvals without material remedies and is now awaiting
approval of the secondary transaction by the antitrust authorities. The
closing of the transaction is expected to take place at the year-end 2023
or beginning of 2024. Earnings contributions from the Terreal Group are
not included.

For the complete report on the third quarter of 2023, please visit
[1] https://www.wienerberger.com/en

wienerberger
wienerberger is a leading international provider of innovative, ecological
solutions for the entire building envelope, in the fields of new buildings
and renovations, as well as infrastructure in water and energy management.
With more than 19,000 employees worldwide, wienerberger’s solutions enable
energy-efficient, healthy, climate-friendly, and affordable living.
wienerberger is the world’s largest producer of bricks and the market
leader in clay roof tiles in Europe as well as concrete pavers in Eastern
Europe. In pipe systems (ceramic and plastic pipes), the company is one of
the leading suppliers in Europe. By acquiring Meridian Brick, wienerberger
further strengthened its position as a leading supplier of facade products
in North America. With its more than 200 production sites, wienerberger
generated revenues of approx. € 5.0 billion and EBITDA of € 1 billion in
2022. 

For further information, please contact:
Claudia Hajdinyak, Head of Corporate Communications Wienerberger AG
t +43 664 828 31 83 | claudia.hajdinyak@wienerberger.com

Investor Relations Wienerberger AG
t +43 1 601 92 – 10221 | investor@wienerberger.com

══════════════════════════════════════════════════════════════════════════

09.11.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

══════════════════════════════════════════════════════════════════════════

Language: English
Company: Wienerberger AG
Wienerbergerplatz 1
1100 Wien
Austria
Phone: +43 1 60 192-0
Fax: +43 1 60 192-10159
E-mail: investor@wienerberger.com
Internet: www.wienerberger.com
ISIN: AT0000831706
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1768841

 
End of News EQS News Service

1768841  09.11.2023 CET/CEST

References

Visible links
1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=35c1a88a8b9e08d3a3d5fac4700a3ebb&application_id=1768841&site_id=apa_ots_austria&application_name=news