The listed building materials group Wienerberger noticeably increased sales and earnings in 2022 thanks to strict cost and energy management. In the midst of the crisis, sales revenues increased by 25 percent to around 5 billion euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 48 percent to over EUR 1 billion compared to the corona year 2021, as the group announced today. The dividend is to be increased by 20 percent to 90 cents per share.
“The past year was marked by great international instability – by the Russian war of aggression against Ukraine, the biggest energy crisis since World War II, sharply rising costs with double-digit inflation and interest rate increases – in other words, a year with many events,” looked CEO Heimo Scheuch on Wednesday back to the extremely eventful year 2022.
In this environment, Wienerberger “grew organically very strongly”. “This is the first time that we have broken through the 1 billion mark because we have consistently focused on further developing innovations in recent years,” said Scheuch with reference to operating EBITDA. The group had a “strong utilization”. “We have continued to produce fully in the existing plants.”
The energy crisis has not affected the brick giant so far – the company had already covered its gas requirements in advance. According to the CEO, Wienerberger continuously buys gas and electricity in advance depending on the planned production volume. As a result, around 96 percent of the required gas volume was already secured against a price increase in 2022. Also this year – one year after the start of the war in Ukraine – there is no threat of trouble here: “We bought more than 90 percent of the gas for this year two years ago, also for 2024,” said Scheuch. And as soon as the gas price goes down, Wienerberger stocks up for the years to come.
Some of the generally increased costs are being passed on to customers. In the past year, the group had a cost inflation of “only” 15 percent because it bought energy early – the price increase in the market was 20 percent. For 2023, the company expects around 10 percent. However, that does not mean that Wienerberger will increase prices to the same extent. “We don’t pass everything through immediately so that customers can calculate the prices.” Rather, there will be price increases “in the mid-single digits,” said Scheuch to the APA. The construction costs were “increased by many issues”.
In general, Wienerberger expects the global market environment to remain unstable in 2023. Some factors such as the war in Ukraine, highly volatile financial markets, only a slow decline in high inflation figures and rising borrowing costs would still have to be considered this year.
Management expects significantly lower market levels than in previous years in Europe and North America this year – especially in the new construction segment (minus 15 and 20 percent respectively), but also in the infrastructure sector (minus 5 percent each). The market for renovation and refurbishment, which accounts for 29 percent of Wienerberger’s sales, should remain stable. “We are not only active in new construction, but increasingly in renovation,” emphasized the CEO.
Wienerberger already recorded a 10 percent decline in new construction last year – “very sharply in Central Eastern Europe, for example in Poland and Hungary, as a result of the Ukraine war, but also in Western Europe,” reported the CEO. In 2021 Wienerberger would have had “the strongest demand in new buildings”.
“But the demand is very good everywhere, only the investors are waiting,” emphasized Scheuch. On the one hand, “costs have exploded” in recent years, and on the other hand, the issue of financing has “become more tense”. “This causes projects to be delayed.”
Wienerberger will continue to grow this year and “buy large parts of the French Terreal – that will be implemented in the second half of the year”. The acquisition of the roofing and solar provider is expected to increase the number of group locations worldwide from 216 to 240 and increase the number of employees by almost 3,000 from around 20,000 this year. “We are thus continuing to grow in the important renovation business in Europe,” said the CEO.
However, the deal is not quite through yet – the Federal Competition Authority has examined the announced takeover and found it to be unapprovable. At the beginning of February, the BWB therefore submitted an application for an in-depth examination to the cartel court. There are concerns about the very high market shares of the companies involved. Negative effects on competition and on customers cannot currently be ruled out.
“In an environment that will also be characterized by instability in 2023, we at Wienerberger are confident that we will continue to develop positively this year,” said Scheuch.
The world’s largest brick manufacturer will present the full annual financial statements for 2022 on March 27.