HeidelbergCement remains on a solid growth path in the first nine months of 2019 – cash flow rises to record level
Published by David Bizley,
Editor
World Cement,
Highlights
- Revenue increases by 7% to €14.3 billion; result from current operations before depreciation and amortisation increases by 17% to € 2.6 billion1).
- Savings target for sales & general administration costs reached 15 months earlier than planned – target increased by €30 million to €130 million.
- Net debt declined significantly by €1.1 billion thanks to very strong cash flow development – net debt target at year-end adjusted from previously €7.7 billion to €7.4 billion.
- Outlook for 2019 confirmed – moderate increase in revenue, result, and profit for the financial year2).
“HeidelbergCement remains on a solid growth path. We were able to increase revenue and results also in the third quarter of 2019. Price increases and strict cost discipline more than compensated for the slightly weaker demand for our products in the third quarter,” said Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement.
“In Western and Southern Europe as well as in Asia, we were able to significantly increase our margins. Our business in North America developed well, although profitability was effected by positive one-time effects in the same quarter of the previous year. Group area Africa-Eastern Mediterranean Basin bottomed out and has reached its highest result for five quarters.
Once again, HeidelbergCement benefitted from its broad regional presence and vertical integration. With the exception of Egypt, all other Group countries achieved positive results. This was also due to our efficiency programme that we launched in 2018. We have reached our target of saving €100 million in sales & general administration costs by 2020 more than one year earlier than planned. Now, we intend to reduce costs by additional €30 million by the end of 2020.”
Solid increase in revenue and results
Group revenue rose by 7% to €14.3 billion (previous year: 13.4) from January to September 2019. Excluding consolidation and exchange rate effects, Group revenue grew by 4%.
1) Like-for-like growth of revenue and result from current operations before depreciation and amortisation, i.e before exchange rate and consolidation effects as well as adjustments from IFRS 16 Leases, at +4% each.
2) Revenue and result from current operations before exchange rate and consolidation effects as well as adjustments from IFRS 16 Leases; profit for the financial year before non-recurring effects.
Read the article online at: https://www.worldcement.com/europe-cis/07112019/heidelbergcement-remains-on-a-solid-growth-path-in-the-first-nine-months-of-2019-cash-flow-rises-to-record-level/
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