Wienerberger AG Q4 2024 Earnings Conference Call
Company Participants:
- Therese Jander – SVP IR
- Heimo Scheuch – CEO
- Gerhard Hanke – CFO
Conference Call Participants:
- Brijesh Siya – HSBC
- Axel Stasse – Morgan Stanley
- Yassine Touahri – On Field Investment Research
- Gregor Kuglitsch – UBS
- Tobias Woerner – Stifel
- Harry Goad – Berenberg
Opening Remarks:
Therese Jander: Good morning, ladies and gentlemen, and I hope you’re all well. A warm welcome to the Wienerberger conference call.
CEO’s Remarks:
Heimo Scheuch: Thank you, Therese. I am pleased to report that Wienerberger had another successful quarter. Our building materials division continued to perform well, with strong demand for our clay and concrete products. We have also made significant progress in our digitalization efforts, which are helping us to improve operational efficiency and enhance the customer experience.
CFO’s Remarks:
Gerhard Hanke: I’d like to add some detail to Heimo’s comments. Our Q4 revenue came in at €2.7 billion, which is an increase of 5% compared to the same quarter last year. Our operating income was €357 million, up 12% year-over-year. Our net income for the quarter was €221 million, an increase of 16% compared to Q4 2023.
Impact on Investors:
Brijesh Siya (HSBC): Heimo and Gerhard, could you please talk about the impact of these strong results on Wienerberger’s financial position and your capital allocation plans?
Heimo Scheuch: Certainly, Brijesh. Our strong cash flow generation has allowed us to maintain a solid balance sheet, with net debt to EBITDA ratio of 1.7x. We plan to continue to invest in growth initiatives, including digitalization and expansion into new markets, while also returning capital to shareholders through dividends and share buybacks.
Impact on the Industry:
Axel Stasse (Morgan Stanley): Heimo, how do you see the current market conditions impacting Wienerberger and the building materials industry as a whole?
Heimo Scheuch: Axel, the construction industry is currently experiencing strong demand, driven by housing starts and infrastructure projects. This trend is expected to continue, supported by demographic trends and government stimulus measures. However, there are also challenges, such as supply chain disruptions and increasing raw material costs, which we are managing carefully.
Impact on Customers:
Yassine Touahri (On Field Investment Research): Heimo, how is Wienerberger addressing the needs of its customers in this dynamic market environment?
Heimo Scheuch: Yassine, we are focused on providing our customers with high-quality products and excellent service. We are investing in digital platforms and tools to make it easier for customers to order and manage their projects. We are also expanding our product range to meet evolving customer needs, such as sustainable building solutions.
Conclusion:
In conclusion, Wienerberger delivered strong financial results in Q4 2024, driven by demand for its building materials and progress in its digitalization efforts. The company remains well-positioned to capitalize on market opportunities while managing challenges. For investors, Wienerberger’s solid financial position and growth plans make it an attractive investment opportunity. For the industry, Wienerberger’s focus on innovation and customer service sets it apart from competitors. And for customers, Wienerberger’s commitment to providing high-quality products and excellent service ensures that they can build projects with confidence.
We believe that Wienerberger’s strong performance is a positive sign for the building materials industry as a whole, which is expected to continue to benefit from strong demand and government stimulus measures. However, there are also challenges, such as supply chain disruptions and increasing raw material costs, which will require careful management. We will continue to monitor Wienerberger’s progress and report back to our readers.
Thank you for joining us on this call. If you have any further questions, please don’t hesitate to contact us.
