The German building materials heavyweight's revenue decreased by 8% to €4,488 million after a strong prior-year Q1. Current operations (RCO) result stood at €232 million (Q1 2023: €258 million).
Heidelberg Materials continued its strategic growth with a major acquisition of Malaysia-based ACE Group. Meanwhile, Group decarbonisation progresses with a funding commitment of up to US$500 million for the CCUS (carbon capture, utilisation and storage)
project in Mitchell, Indiana, USA.
"Despite declining revenues compared to a strong prior-year quarter, we have further increased our profitability. This was in particular due to the very good start to the year in North America and strict cost management," said Dr Dominik von Achten, Chairman of the Heidelberg Materials' Managing Board. "The good start allows us looking forward confidently to the rest of the year. Against this backdrop, we confirm the outlook for the full year 2024.
"Our ambitious decarbonisation roadmap continues to gain momentum. With our two new product brands, evoBuild and evoZero, we are taking innovative paths. In the first quarter, we were able to secure substantial funding for our largest CCUS project in the USA. The many initiatives in all regions are clear evidence of the synergies we leverage in our globally positioned company. I would like to thank the Heidelberg Materials team for driving these pioneering projects forward with great passion."
Heidelberg Materials reports that positive price momentum, particularly in North America, partially compensated for the pressure on volumes in the first quarter.
Heidelberg Materials continues to expect that demand in the construction sector will increasingly stabilise at a low level. Against this backdrop, the company confirms its outlook for the 2024 financial year. Heidelberg Materials anticipates a result from current operations in a corridor of €3 billion to €3.3 billion. ROIC is expected to be around 10%.
The Quarterly Statement for January to March 2024, with an overview of our financial figures for the first quarter of 2024, can be found on our website, www.heidelbergmaterials.com, under Investor Relations/Reports and Presentations.
