Q3 2021 Trading Update
4 November 2021
Dr. Dominik von Achten - Group CEO René Aldach - Group CFO
House of Astronomy, Germany
Key Messages
- 9M result significantly above prior year - Q3 result impacted by extraordinary high comparison base and unprecedented energy cost inflation
- New business excellence program launched - mitigating cost inflation by at least 500 m€ in 2022
- Net debt level further reduced - solid free cash flow and closing of US West divestiture in October
- Portfolio optimization continues - divestment of assets in Spain and acquisition of Tanga Cement in Tanzania
- Strong progress in our two transformational topics:
- Up to 10 million t of CO2 reduction with current CCU/S projects until 2030
- Focus on additional digital revenue potential
- Full year 2021 outlook partially raised
- Forecast for operating EBITDA and EBIT confirmed
- Forecast for ROIC raised to above 9%
- Forecast for leverage ratio reduced to below 1.5x
Moesgaard Museum, Denmark
O P E R A T I O N A L P E R F O R M A N C E
Solid Q3 performance despite headwinds from cost inflation
Revenue (m€)
Operating EBITDA (m€)
Operating EBITDA Margin | Operating EBIT (RCO) (m€) | |
-0.1%
LfL: +2.7%
+3.5%
LfL: +3.7%
5,061 | 4,886 | 5,058 | |
Q3 2019 | Q3 2020 | Q3 2021 | |
3 | Q3 2021 Trading Update | 4 November 2021 |
+0.2%
LfL: +3.8%
-11.4% | ||
LfL: -10.7% | ||
1,174 | 1,328 | 1,176 |
Q3 2019 | Q3 2020 | Q3 2021 |
+5 bps | ||
-393 bps | ||
27.2% | 23.2% | |
23.2% | ||
Q3 2019 | Q3 2020 | Q3 2021 |
YoY
'21 vs. '19
+4.8%
LfL: +8.8%
-13.6% | ||
LfL: -12.6% | ||
1,005 | 869 | |
829 | ||
Q3 2019 | Q3 2020 | Q3 2021 |
YoY
'21 vs. '20
O P E R A T I O N A L P E R F O R M A N C E
9M operating EBITDA and EBIT significantly above prior year
Revenue (m€)
Operating EBITDA (m€)
Operating EBITDA Margin | Operating EBIT (RCO) (m€) | |
-1.9%
LfL: +0.8%
+6.5%
LfL: +8.5%
14,273 | 13,140 | 13,996 | |
9M 2019 9M 2020 | 9M 2021 | ||
4 | Q3 2021 Trading Update | 4 November 2021 |
+10.9%
LfL: +14.5%
+6.0%
LfL: +8.2%
2,612 | 2,731 | 2,896 |
9M 2019 | 9M 2020 | 9M 2021 |
+239 bps | ||
-9 bps | ||
18.3% | 20.8% | 20.7% |
9M 2019 | 9M 2020 | 9M 2021 |
YoY
'21 vs. '19
+23.4%
LfL: +27.7%
+13.9%
LfL: +16.1%
1,715 | 1,953 | |
1,583 | ||
9M 2019 | 9M 2020 | 9M 2021 |
YoY
'21 vs. '20
O P E R A T I O N A L P E R F O R M A N C E
Demand continues to be solid across all regions
Volumes | '21 vs. '20 | |||
Q3 19 | Q3 20 | Q3 21 | LfL | |
Cement sales volume (mt) | 33.5 | 33.9 | 33.9 | 0.8% |
Aggregates sales volume (mt) | 87.7 | 86.3 | 86.3 | 0.3% |
Ready mix sales volume (mt) | 13.6 | 12.2 | 12.2 | -3.7% |
Revenue (mEUR) | '21 vs. '20 | |||
Q3 19 | Q3 20 | Q3 21 | LfL | |
North America | 1,487 | 1,377 | 1,391 | 1.9% |
Western & Southern Europe | 1,312 | 1,375 | 1,418 | 2.3% |
North & Eastern Europe - C.A. | 796 | 792 | 859 | 8.4% |
Asia Pacific | 867 | 793 | 792 | -0.3% |
Africa - Eastern Med. Basin | 424 | 455 | 486 | 6.0% |
Operating EBITDA (mEUR) | '21 vs. '20 | |||
Q3 19 | Q3 20 | Q3 21 | LfL | |
North America | 408 | 415 | 366 | -9.7% |
Western & Southern Europe | 251 | 332 | 269 | -19.3% |
North & Eastern Europe - C.A. | 230 | 246 | 248 | 1.4% |
Asia Pacific | 191 | 211 | 169 | -20.0% |
Africa - Eastern Med. Basin | 106 | 130 | 117 | -9.8% |
Significant increase in energy costs and high comparison base put short term pressure on margins in all regions
North America
- Positive demand and pricing in Q3; also expect good underlying business demand going into Q4.
- Freight driven high import costs put short term pressure on margin.
Europe
- Continued increase in demand across WSE. Revenue growth despite high comparison base. EBITDA impacted by operational issues in France.
- Solid volumes and pricing in Eastern Europe across all business lines led to strong revenue growth and EBITDA improvement.
Asia-Pacific
- Covid driven lockdowns put pressure on volumes and EBITDA in Q3.
- Strong demand development expected in Q4 and into next year.
Africa - Eastern Mediterranean
- Continuing volume growth and positive pricing led to revenue growth. Result recovery started in Egypt.
- Result negatively impacted by high freight rates and increased demurrage costs due to port congestion.
5 | Q3 2021 Trading Update | 4 November 2021 |
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HeidelbergCement AG published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 06:21:03 UTC.