Q3 2023 Trading Update
2 November 2023
Dr Dominik von Achten - CEO René Aldach - CFO
Key messages Q3 2023
-
Strong operational performance*:
Revenue up +2%; EBITDA up +25%; RCO up +33% - Solid margin improvement in all regions, driven by positive price over cost which compensates volume pressure
- Free cash flow at around 2 €bn**
- 1 €bn share buyback program just completed. Shares acquired during the first two tranches are fully cancelled
- Good progress on CCUS and CO2 reduction projects
- 2023 Outlook further upgraded:
- RCO between 2.85-3.00 €bn (previously 2.70-2.90€bn)
- ROIC clearly above 9% (previously around 9%)
- Leverage below 1.5x (previously between 1.5x to 2.0x)
- All like-for-like, excluding currency and scope impacts
- Based on last 12 months rolling figures
2 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
Q3 2023 operational overview
Revenue [€m] | |||
+553 €m | -241 €m | ||
LfL: | LfL: | ||
+15.6% | +1.6% | ||
5,852 | 5,611 | ||
5,058 | |||
Q3 2021 | Q3 2022 | Q3 2023 |
YoY 2023 vs. 2022
YoY 2023 vs. 2021
Operating EBITDA [€m] | |||
+217 €m | +199 €m | ||
LfL: | LfL: | ||
+20.6% | +24.7% | ||
1,393 | |||
1,176 | 1,193 | ||
Q3 2021 | Q3 2022 | Q3 2023 |
Operating EBITDA Margin
+157 bps | +443 bps |
23.2% | 24.8% | |
20.4% | ||
Q3 2021 | Q3 2022 | Q3 2023 |
Operating EBIT (RCO) [€m]
+211 €m | +206 €m | ||
LfL: | LfL: | ||
+27.9% | +32.9% | ||
1,080 | |||
869 | 874 | ||
Q3 2021 | Q3 2022 | Q3 2023 |
3 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
9M 2023 operational overview
Revenue [€m] | |||
+2,087 €m | +281 €m | ||
LfL: | LfL: | ||
+18.7% | +6.0% | ||
13,996 | 15,802 | 16,083 | |
9M 2021 | 9M 2022 | 9M 2023 |
YoY 2023 vs. 2022
YoY 2023 vs. 2021
Operating EBITDA [€m] | |||
+283 €m | +461 €m | ||
LfL: | LfL: | ||
+11.8% | +22.8% | ||
2,896 | 3,179 | ||
2,718 | |||
9M 2021 | 9M 2022 | 9M 2023 |
Operating EBITDA Margin
-92 bps | +257 bps | ||
20.7% | 19.8% | ||
17.2% | |||
9M 2021 | 9M 2022 | 9M 2023 |
Operating EBIT (RCO) [€m]
+316 €m | +487 €m | ||
LfL: | LfL: | ||
+19.9% | +35.3% | ||
2,269 | |||
1,953 | 1,782 | ||
9M 2021 | 9M 2022 | 9M 2023 |
4 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
Q3 2023 Operating EBIT (RCO) bridge [€m] | ||||||||
+270 €m | ||||||||
(+33%) | ||||||||
453 | -7 | 1,090 | -10 | 1,080 | ||||
874 | -54 | 821 | -176 | |||||
Q3 2022 RCO | Currency | Q3 2022 | Net volume | Price | Depreciation | Q3 2023 | Scope | Q3 2023 RCO |
LfL RCO | over cost | LfL RCO |
5 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
9M 2023 Operating EBIT (RCO) bridge [€m] | ||||||||
+597 €m | ||||||||
(+35%) | ||||||||
973 | 5 | 2,289 | -20 | 2,269 | ||||
1,782 | -90 | 1,692 | -381 | |||||
9M 2022 RCO | Currency | 9M 2022 | Net volume | Price | Depreciation | 9M 2023 | Scope | 9M 2023 RCO |
LfL RCO | over cost | LfL RCO |
6 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
North America
Q3 Q3 Q3
2021 2022 2023
-61 €m
LfL: +1%
1,391 | 1,583 | 1,522 |
Revenue [€m] |
+37 €m
LfL: +17%
291 | 326 | 363 |
RCO [€m] |
+324 bps
20.9% | 20.6% | 23.9% |
RCO Margin
- Strong result development despite lower demand, especially in residential sector
- Positive pricing and continuous focus on cost management bring margin back to pre-covid level
- Result contribution from recent investments across North America ahead of initial expectations
7 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
Western & Southern Europe
Q3 Q3 Q3
2021 2022 2023
-3 €m
LfL: 0%
1,418 | 1,619 | 1,616 |
Revenue [€m] |
+104 €m
LfL: +62%
277 | |
177 | 173 |
RCO [€m] |
+646 bps
17.2% | |
12.5% | 10.7% |
RCO Margin
- Residential sector continues to be weak, visible in demand decline over the entire region
- Effective cost management leads to solid margin improvement
- All countries contribute positively to result development
8 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
Northern & Eastern Europe - Central Asia
Q3 | Q3 | Q3 | ||
2021 | 2022 | 2023 | ||
-21 €m
LfL: +4%
859 | 1,001 | 980 |
Revenue [€m] |
+42 €m
LfL: +36%
200 | 230 |
189 | |
RCO [€m] |
+465 bps
23.2% | 23.5% |
18.9% |
RCO Margin
- Revenue decline in absolute terms caused by demand pressure and currency impact
- RCO improvement driven by continuing focus on cost management and positive pricing
- Margin growth despite volume pressure
9 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
Operational result
Asia - Pacific
Q3 Q3 Q3
2021 2022 2023
-29 €m
LfL: +7%
978 | 949 |
792 | |
Revenue [€m] |
+33 €m
LfL: +54%
112 | 118 |
85 | |
RCO [€m] |
+375 bps
14.1% | 12.4% |
8.7% |
RCO Margin
- Recovery continues in Asia, particularly in Australia and Indonesia
- Solid increase in region RCO and margin, driven by moderating energy prices
- China market remains soft
10 | 02/11/2023 | Q3 2023 Trading update | Dr Dominik von Achten, René Aldach |
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Heidelberg Materials AG published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 10:14:55 UTC.