EQS-News: Full-year results 2023: wienerberger outperforms its end markets and meets expectations

EQS-News: Wienerberger AG / Key word(s): Annual Results
   Full-year results 2023: wienerberger outperforms its end markets and meets
   expectations 

   21.02.2024 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   Full-year results 2023: wienerberger outperforms its end markets and meets
   expectations 

   Highlights 2023

     • Total Revenues of € 4.2 billion, operating EBITDA of € 811 million
     • Strong results, due to increased exposure to infrastructure (piping
       business for energy and water management) and renovation business,
       demonstrating resilience and successful strategic orientation
     • Proposed dividend of € 0.90 per share for 2023

    

   Strategy and outlook 2024

     • Focus on sustainable growth, portfolio optimization and profitability
     • Swift expansion of business activities in the renovation segment as
       the leading European pitched roof expert for innovative roof and solar
       solutions following Terreal acquisition
     • Ongoing improvement of ESG performance with Sustainability Program
       2026

    

   Vienna, February 21, 2024 – wienerberger performed extremely well in the
   challenging market environment in 2023, meeting its expectations,
   outperformed its markets and, following the record year 2022, generated an
   operative EBITDA of € 811 million and revenues of € 4.2 billion. This
   strong outcome was primarily achieved as a result of increased activities
   in infrastructure (piping business for energy and water management
   applications) and in the renovation segment. However, the new build
   segment, particularly in Europe, recorded some sharp declines due to
   significantly higher interest and inflation rates. North America, on the
   other hand, proved to be more resilient and made a solid contribution to
   earnings.

   In light of the challenging market environment at the start of the year,
   the company intervened very quickly in the entire cost management process,
   contributing to the strong results. The established self-help program,
   aimed to increase earnings and improve efficiencies, also contributed
   € 46 million to the results. At the same time, technology optimizations
   were implemented that have led to a reduction in the company's energy
   consumption and thus, in addition to cost savings, to a reduction in CO[2]
   emissions. These solid results once more demonstrate the resilience of
   wienerberger's sustainable and diversified business model, which has the
   necessary strength to successfully hold its own in difficult market
   environments.

   „In 2023 wienerberger once again outperformed its markets and successfully
   maintained its position generating an operating EBITDA of € 811 million,
   which is in line with our expectations. In terms of resilience, we have
   focused on a balanced portfolio by expanding the renovation and
   infrastructure segments. Also, our proactive cost management, innovation,
   and broad diversification in ecological new build, energy-efficient
   renovation as well as water and energy management are paying dividends. By
   enabling affordable housing, continuously improving people's quality of
   life and proactively responding to the challenges of climate change and
   its effects, wienerberger is becoming part of the solution and even more
   sustainable and successful,” says Heimo Scheuch, CEO of Wienerberger AG.

   Performance of the Segments

   Europe West: In 2023, external revenues amounted to € 2.2 billion (2022: €
   2.5 billion) and operating EBITDA came to € 378 million (2022: € 426
   million).

   The 2023 financial year was characterized by persistently high inflation
   and rising interest rates. Demand fell in the new build segment,
   especially in Germany, while France, Belgium and the Netherlands still
   recorded good demand in the first half of the year. In the infrastructure
   segment, there were inflation-related declines in public contracts in
   almost all countries. However, the increased share of the wastewater
   systems business and profitable growth in the renovation segment had a
   positive effect on the performance. With the acquisition of the Danish
   Strøjer Group in the second quarter and Komproment ApS in the first
   quarter, wienerberger further expanded its sustainable range of innovative
   façade solutions and thus its market share in the Nordic countries. The
   acquisition of Wideco Sweden, which was also completed in the second
   quarter, expands energy and water management solutions in Scandinavia. All
   acquisitions made a favorable contribution to earnings in the second half
   of the year and will continue to do so into 2024.

   Europe East: In 2023, external revenues amounted to € 838 million (2022: €
   945 million) and operating EBITDA came to € 213 million (2022: € 223
   million).

   Eastern Europe saw signs of a decline in inflation and interest rates from
   the second half of the year onwards. The continued significant reduction
   in the real purchasing power of the public sector and private households
   had a negative impact on wienerberger's end markets, with new build being
   particularly affected. The markets in south-eastern Europe were an
   exception, as both sales and earnings increased. Demand in the
   infrastructure sector was stable overall, although it was evident that the
   realization of projects continues to be delayed due to limited budgetary
   resources in the public sector.

   North America:  In 2023, external revenues amounted to € 838 million
   (2022: € 945 million) and operating EBITDA came to € 213 million (2022: €
   223 million).

   In a sluggish market environment, wienerberger successfully increased
   market share and the operating EBITDA margin from 23.6% in 2022 to 25.5%
   in 2023 through proactive cost and price management. The long-term demand
   for residential space remains high level. Due to high level of interest
   rates, demand in 2023 was nevertheless subdued, especially in new build.
   In the infrastructure segment, the company recorded a significant increase
   in demand in the second half of 2023.

   Sustainability as a strategic and operational focus for business
   development

   Sustainability has always been an integral part of wienerberger's
   corporate strategy. Since the 2023 targets have been achieved, they have
   been renewed and upgraded for 2026. The new three-year wienerberger
   sustainability program extends the environmental and social topics,
   leveraging wienerberger's sustainability targets to organic growth, both
   within internal processes as well as assisting society with products
   supporting energy efficiency and climate resilience. It provides the right
   strategic and operational focus for sustainable business development
   complemented by the areas of revenue from products supporting net zero
   buildings, water and waste management as well as diversity and inclusion.
   By the end of 2026, wienerberger will see 75% of its revenue come from
   building products through the sale of products that support net zero
   buildings, such as integrated solutions for roofs, outer walls including
   façades, heating, cooling, and solar power generation.

   Dividend and 2024 Outlook

   Considering the strong results for 2023 and the company's attractive
   dividend policy, the Managing Board will propose to the Annual General
   Meeting that a dividend of € 0.90 per share be distributed for 2023.

   By acquiring Terreal, a successful European provider of innovative roof
   and solar solutions, wienerberger will significantly expand its presence
   in the growing renovation segment and become the leading European expert
   for pitched roofs. In total, the transaction includes almost 3,000
   employees, 28 production sites and expected annual sales of around
   € 740 million. wienerberger is confident that the transaction will be
   completed in the first quarter of 2024. With the preparatory measures
   already taken in 2023, the company has done everything necessary to ensure
   the swift and efficient integration of Terreal immediately after closing.

   In order to ensure high profitability, wienerberger intends to
   significantly outperform its markets in 2024 again, building on its
   innovative and ecological solutions for renovation, infrastructure and new
   build. The company will also continue to focus on proactive cost
   management, price over cost and the continuation of the self-help program.
   Assuming that the market development of the fourth quarter of 2023 will
   continue in 2024, particularly in the first half of the year, and that the
   earnings contributions from the Terreal deal will make a positive
   contribution from the second quarter of 2024 onwards, operating EBITDA of
   around € 860–890 million for 2024 is expected.

   The full 2023 Annual Report will be published on March 25, 2024.

   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. € 4.2 billion and an operating EBITDA of €
   811 million in 2023. 

   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

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   21.02.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   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: 1841141


    
   End of News EQS News Service


   1841141  21.02.2024 CET/CEST

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