Best Half Year in the 200-Year History of the Company
- Profitable growth through excellent operational performance and consistent implementation of the growth strategy
- Revenues at new record level: € 1,736 million (+8%)
- EBITDA LFL at all-time high of € 287 million (+33%)
- Net profit doubled from € 53 million to € 127 million
- Extremely strong contribution to earnings from Fast Forward program: € 25 million
Outlook for 2019
- Annual guidance focused on strong EBITDA growth
- EBITDA target for 2019 at € 570-580 million
- Further investments in future-oriented solutions
The Wienerberger Group, a leading international supplier of innovative solutions for the building envelope and smart infrastructure, consistently pursued its value-creating growth strategy throughout the first half of 2019 and set new records in terms of revenues and earnings.
During the past six months, our strategic projects advanced rapidly.
The company’s performance-enhancing Fast Forward program made excellent progress. Moreover, through the timely integration of acquisitions in Great Britain and Belgium, Wienerberger was able to further strengthen its position in strategic core markets.
Altogether, these developments translated into the best mid-year result ever achieved in the 200-year history of our company. We are thus fully on track to meet our ambitious targets for 2019 as a whole.
In the first half of 2019, Wienerberger generated an 8% increase in revenues at Group level to € 1,736 million, up from € 1,607 million in the comparable period of the previous year. The main contributors to this positive development were high-quality system solutions. Compared to the first half of 2018, EBITDA LFL grew by 33% to € 287 million (after € 215 million in 2018). The Fast Forward program delivered a noteworthy contribution to earnings of roughly € 25 million. The Group’s net profit more than doubled from € 53 million to € 127 million in the first half of 2019.
Revenue growth in all Business Units
In the first half of 2019, Wienerberger generated revenue growth in each of its three Business Units. With revenues up by 10% to € 1,074 million and an improvement in EBITDA LFL by 37% to € 219 million, Wienerberger Building Solutions delivered an outstandingly strong performance. For Wienerberger Piping Solutions, the enhancement of the product mix and the optimized cost position resulted in growth in revenues (+4% to € 497 million) and earnings (EBITDA LFL up by 47% to € 52 million), The North America Business Unit reported a 10% increase in revenues to € 165 million, while EBITDA LFL came to € 16 million (after € 19 million in 2018).
Strengthened position as a provider of system solutions
The first half of 2019 was marked by great success in Wienerberger’s efforts to transform its product range through a strong focus on smart and resource-efficient system solutions. Almost one third of the Group’s total revenues is already being generated by innovative solutions and services. These range from digitally designed, prefabricated wall elements to tailor-made electrical solutions for buildings to innovative building materials and smart solutions for meeting the challenges of climate change. Our Raineo system, an intelligent solution to cope with the increasing frequency of flooding in urban areas, is an excellent example.
We are thus shaping the future of building construction, renovation and infrastructure and, at the same time, contributing toward improving the ecological balance of the construction industry.
Outlook for 2019
Despite current factors of uncertainty, Wienerberger anticipates largely stable to slightly growing demand in its core markets. Regardless of increasing market volatility, Wienerberger will continue to grow.
Based on the outstandingly strong performance of the first half of the year, our outlook for the second half is extremely optimistic and we can therefore specify our forecast for EBITDA LFL of € 570 to 580 million (previously € 560 to 580 million) for 2019.
For the complete 2019 Mid-Year Report, please click here.