Declines at Wienerberger, but margins even increased

In 2023, the company made less profit than in the previous year. The world’s largest brick manufacturer announced that operating earnings before interest, taxes, depreciation and amortization (Ebitda) fell from a good 1 billion euros to 811 million euros. Sales fell from around five billion euros to 4.2 billion euros. The company “held its ground in declining hardware markets.” The market environment was “particularly challenging”.

However, the margin is still extremely good or has even been increased. The company “intervened very quickly in the entire cost management process, which contributed to the good results,” Wienerberger said. In a sluggish market environment, the group expanded its market shares and increased the operating Ebitda range from 23.6 to 25.5 percent. In the long term, the need for living space will remain high. However, the high level of interest rates dampened demand in the past financial year, especially in the new construction segment. In the infrastructure sector, demand increased significantly in the second half of the year.

Based on the two assumptions that the market development observed in the fourth quarter of 2023 will continue in 2024 – especially in the first half of the year – and that the newly acquired roofing provider Terreal will make a positive contribution to earnings from the second quarter of 2024, Wienerberger expects an operational one for the full year 2024 Ebitda between 860 and 890 million euros.

The result of the past financial year was achieved primarily through increased activities in the infrastructure sector, in the pipe sector for applications in energy and water management and in the renovation segment. The new construction segment, particularly in Europe, has seen a sometimes sharp decline as a result of significantly higher interest and inflation rates. North America, on the other hand, has proven to be more resilient and made a solid contribution to earnings. The domestic building materials company has more than 19,000 employees at around 200 production sites worldwide.

The dividend distribution will remain at the previous year’s level of 90 cents per share. Wienerberger will publish the complete balance sheet on March 25, 2024.