The world's largest brick manufacturer Wienerberger felt the 2020 corona crisis with full force. The bottom line was a significantly lower profit of 89 million euros – that was almost two thirds less than in the previous year (249.1 million euros), as can be seen from the current balance sheet figures. However, thanks to government measures to contain the pandemic, sales fell by only 3 percent to 3.35 billion euros. There should be no cutbacks in terms of dividends.
Due to the lockdowns, there were often lengthy business interruptions in numerous key markets. Wienerberger stated that it continued to implement strict cost management and measures to increase efficiency. The global workforce was cut from an average of 17,234 to 16,619 employees compared to the previous year (minus 4 percent).
“We have already created the necessary prerequisites in the past in order to be able to react quickly to unforeseeable events,” emphasized CEO Heimo Scheuch on Wednesday. “In this way we were able to master the crisis, work consistently on the continuation of our growth strategy and position ourselves optimally for the future.” According to the company, Wienerberger continued to focus on “transforming its product portfolio” in the 2020 financial year – this was further optimized and expanded with “intelligent system solutions”.
For the 2021 financial year, the management has set itself the goal of increasing adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) “regardless of the challenges caused by Covid-19 and still existing to 600 to 620 million euros and thus to return to pre-crisis levels “. In the past year it was 565.6 million euros (minus 5 percent). Not adjusted, EBITDA was 610 million euros (minus 9 percent).
Before interest and taxes, Wienerberger achieved a profit (EBIT) of 192.5 million euros in 2020 – that was 47 percent less than before Corona. Earnings before taxes (EBT) halved year-on-year to 148.7 million euros. The earnings per share (EPS) fell massively from EUR 2.18 to EUR 0.79. The group still wants to pay out an unchanged high dividend of 60 cents per share. Net income was impacted by non-cash impairment losses in the first quarter of 2020.
At the end of the year Wienerberger had cash and cash equivalents of 666 million euros (2019: 129 million euros). The financial structure was further improved through the buyback of the hybrid bond for around 215 million euros (repayment on February 9, 2021) and the issue of the first green bond. The hybrid bond had previously been reported as equity in the balance sheet and was therefore not part of the previously reported net debt. Despite these measures, as well as the distribution of the dividend and share buyback, the net debt (before hybrid) fell to 657 million euros.
As a brick producer (Porotherm, Terca), Wienerberger is also the market leader for clay roof tiles (Koramic, Tondach) in Europe and for concrete pavements (Semmelrock) in Eastern Europe. The company is one of the leading providers in Europe for pipe systems (Steinzeug-Keramo vitrified clay pipes and Pipelife plastic pipes). The group is globally active with 197 production sites.
