Wienerberger Group sees good prospects for 2017 following strong performance in 2016
Wienerberger Group, Austrian giant in the production of clay bricks and tiles which also operates with the Pipes & Pavers Europe division, reported good results in 2016 and an even stronger performance in the first quarter of 2017.
While revenues remained almost stable in 2016 at €2.9 billion, over the same period EBITDA rose by 9% to €404.3 million and net profit more than doubled to €82 million. On a full-year basis, negative foreign exchange effects depressed revenues by €60.9 million.
Wienerberger’s CEO Heimo Scheuch declared his satisfaction with this performance, particularly considering the continued overall weakness of the construction market.
In 2016 the group’s products were used to build 160,000 houses, set 288,000 roofs, install 630,000 kilometres of pipes and lay 12 million square meters of concrete pavers.
In 2016, the Clay Building Materials Europe Division generated revenues of €1.7 billion, 2% up from the previous year. Business was boosted by the moderate growth in residential construction in Europe, where the group succeeded in increasing its volumes and raising its average selling prices. While demand remained positive in Western Europe, it was especially dynamic in Eastern Europe where governments have been financing housing construction. The Division’s operating results rose to €290.7 million, 17% up on the previous year’s levels, largely due to optimisation of costs and selling prices as well as lower energy prices.
High thermal performance bricks (filled with mineral wool) accounted for 25% of the division’s revenues.
The Pipes & Pavers Division posted a less satisfactory performance with a 5% fall in revenues to €988.2 million and a 9% decline in EBITDA to €98.65 million.
The optimistic scenario of 2016 was maintained in the first quarter of 2017 with 8% growth in revenues to €659.6 million compared to €610.8 million in the first quarter of 2016. EBITDA rose to €46.1 million, 15% up from the €40.1 million of the same period last year. In detail, the Clay Building Materials Europe Division generated revenues of €372 million (9% up on the first quarter of 2016), while the North America Division generated €74 million (+18%). EBITDA also increased from €30 million to €41 million.
Commenting on the results, Heimo Scheuch announced that the goal for 2017 is to increase EBITDA by 9% and to innovate products and services and the digital marketing channel.