Despite a drop in earnings in the first quarter, the Heidelbergcement building materials group is confident about the current year. After the stock exchange closed, CEO Dominik von Achten said on Wednesday that the first quarter of 2022 was “not easy for Heidelbergcement”.
The company continues to see good demand for its products in all regions, even if uncertainties regarding energy and raw material availability and costs remain high. The company confirmed the forecasts for the full year.
Revenue rose 11.8 percent year-on-year to EUR 4.4 billion in the first quarter. Adjusted profit after taxes, interest, depreciation and amortization fell by 26.9 percent to 394 million euros. That was more than analysts expected. The group initially did not provide any information on the bottom line result.
For the current year, Heidelbergcement continues to expect a significant increase in sales and a slight increase in operating results. In 2021, adjusted earnings before interest, taxes, depreciation and amortization rose by six percent to almost 3.9 billion euros. Thanks to higher prices on a comparable basis, sales increased by eight percent to 18.7 billion euros. Currency effects and the purchase and sale of parts of the company are excluded from the forecasts. The effects of the Ukraine war are also not taken into account.