EQS-News: Wienerberger AG / Key word(s): Quarterly / Interim Statement
Wienerberger AG: Wienerberger reports successful Q1 2022 with steep
revenue growth

12.05.2022 / 07:30
The issuer is solely responsible for the content of this announcement.


Wienerberger reports successful Q1 2022 with steep revenue growth


• Steep 45% increase in revenues to € 1,157 million in Q1 2022 (Q1 2021:
€ 797 million)
• Despite a volatile environment, EBITDA more than doubled to € 228
million (Q1 2021: € 106 million) thanks to proactive margin
management, a forward-looking procurement policy, and ongoing
efficiency enhancement measures

Outlook for 2022

• Further growth expected for Q2 2022
• Wienerberger confirms its EBITDA guidance of € 750-770 million for
2022 despite geopolitical instability

Vienna, May 12, 2022 – In the first quarter of 2022, the Wienerberger
Group delivered an outstanding result, continuing the strong performance
of the previous year. Owing to consistently high demand in all markets,
Wienerberger’s revenues increased significantly by 45% to € 1,157 million
(Q1 2021: € 797 million). Despite a volatile environment, EBITDA more than
doubled to € 228 million in the first quarter of 2022, as compared to €
106 million in Q1 2021, thanks to the Group’s forward-looking procurement
and pricing policy and ongoing efficiency enhancement measures.

“During the first three months of 2022, we succeeded in seamlessly
continuing the very good performance of the previous year and generated
the best first-quarter result in the history of our company. This confirms
that Wienerberger has taken the right decisions and that our business
model, focused on new build, renovation, and infrastructure in 28 markets,
has become much more diversified and resilient. Developments in the first
quarter were characterized by consistently high demand, especially in the
renovation segment, across almost all our markets and product groups. Our
plants were therefore working at a high level of capacity in order to meet
our customers’ strong demand. We saw particularly high demand for our
innovative product and system solutions, which have been continuously
added to our product portfolio in recent years”, says Heimo Scheuch,
Chairman of the Managing Board of Wienerberger AG.

Wienerberger recorded a steep increase in revenues and earnings in all its
business units, especially in North America. Thanks to its focus on new
build, renovation, and infrastructure as the Group’s core segments,
Wienerberger succeeded in reaffirming its excellent market position across
all business units. Irrespective of wide-spread speculation, the volume of
gas delivered to Europe was higher in the first quarter of 2022 than in Q1
2021 and the security of gas supply was assured throughout the reporting

Commenting on the issue of gas supply, Heimo Scheuch says, “For years,
Wienerberger has been pursuing a forward-buying strategy in the field of
energy. Based on the projected production quantities, forward purchases of
gas and electricity were continuously made with major energy suppliers.
90% of the gas volume required by the Wienerberger Group for 2022 has thus
been secured in advance. Nevertheless, in order to be prepared for the
exceptional situation of a limited availability of natural gas in Europe,
we elaborated emergency plans for our markets, which can be swiftly
adjusted to changing local conditions.”

Performance of the Business Units
The Wienerberger Building Solutions Business Unit continued to benefit
from the positive market sentiment carried over from the last quarter of
the previous year, recording steep growth in revenues and earnings
compared to the first quarter of 2021. Relative to the same period of the
previous year, external revenues increased by 29% to € 617.7 million in
the first three months of 2022 (Q1 2021: € 478.5 million). Over the same
period, operating EBITDA improved by an impressive 92% to € 145.6 million
(Q1 2021: € 75.7 million). This growth performance was based on
consistently strong demand in almost all our core regions. In both new
build and renovation, Wienerberger benefited from high demand for its
innovative solutions for the entire building envelope.

For the Wienerberger Piping Solutions Business Unit, the positive trend of
the previous year continued during the first months of the current year.
Given persistent tension along the supply chains, Wienerberger Piping
Solutions saw a sharply upwards development of input costs. Overall, the
business unit again reported satisfactory growth. External revenues
increased to a total of € 331.1 million, which corresponds to a 38%
increase compared to the previous year (Q1 2021: € 240.7 million) and
operational EBITDA grew to € 36.5 million (Q1 2021: € 20.8 million).

In the first three months of the current business year, the North America
Business Unit significantly outperformed the previous record of the first
quarter of 2021. In line with the trend already observed in the second
half of the previous year, the market environment and the volume of demand
remained highly satisfactory. Owing to the successful takeover of Meridian
Brick, the business unit was able to derive an added benefit from this
positive market sentiment. Overall, external revenues more than doubled in
the reporting period from € 76.5 million to € 207.5 million. Operating
EBITDA grew even more strongly, rising steeply from € 8.5 million to €
43.3 million. Alongside an improved performance of the façade segment, the
plastic pipe segment delivered a significant contribution to earnings in
the USA.

Outlook for 2022
In the first three months of 2022, Wienerberger delivered an extremely
satisfactory result, outperforming its own expectations. Proactive
measures have already been taken with a view to the rest of the year.
Operating in a strong market environment, Wienerberger currently expects
to see a further slightly increase in demand in the second quarter of the
year. With its plants working at a high level of capacity, Wienerberger is
confident of being able to satisfy the demand of our markets.

Considering that the steep increase in input costs began already in the
second half of the previous year, we expect to see a bit lower upward
trend in the course of 2022. Wienerberger’s objective is to offset cost
inflation through its proactive pricing policy, while always remaining a
reliable and predictable partner for all its customers.

Our ongoing self-help program aimed at earnings growth and efficiency
enhancement is well on track to reach its full-year target of a € 45
million contribution to EBITDA, despite the tense situation at suppliers.

In the interest of a secure supply of natural gas and electricity,
Wienerberger will consistently pursue its proven forward-buying strategy
in the energy market. For 2022, about 90% of the gas volume required by
the Wienerberger Group has already been secured, the corresponding ratios
for 2023 and 2024 being 81% and 69% respectively. Irrespective of
wide-spread speculation, we take it that in the second quarter of 2022
sufficient natural gas will be available in Europe, so that we can meet
the demand for our innovative solutions. Thanks to continuous forward
purchasing of gas and electricity, the prices of the hedged volumes are
significantly below the current spot market prices.

On the demand side, Wienerberger expects to see a continuation of the
positive trend in the European renovation market, which is attributable,
among other factors, to the need for notable improvements in the energy
efficiency of the European building stock, if the targets of the European
Green Deal are to be met. In the field of infrastructure, the numerous
economic stimulus programs in both Europe and North America will generate
further solid demand for energy and water management solutions.

Owing to the current geopolitical instability and the related
implications, visibility for the second half of the year is extremely low.
As far as possible, precautions have been taken to minimize the direct and
indirect negative impact of the conflict between Russia and Ukraine,
rising inflation and high interest rates on the Wienerberger Group,
although a reliable projection of the consequences is impossible from
today’s perspective. Wienerberger is closely monitoring the developments
and continuously reassessing the situation. Nevertheless, based on our
strong and resilient business model, we confirm our EBITDA guidance of €
750 -770 million for 2022 as a whole.

For the complete report on the first quarter of 2022, please visit
[1] https://www.wienerberger.com/en.


12.05.2022 This Corporate News was distributed by EQS Group AG.


Language: English
Company: Wienerberger AG
Wienerbergerplatz 1
1100 Wien
Phone: +43 1 60 192-0
Fax: +43 1 60 192-10159
E-mail: office@wienerberger.com
Internet: www.wienerberger.com
ISIN: AT0000831706
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1349635

End of News EQS News Service

1349635  12.05.2022 


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