By Heidelberg Materials has announced a significant increase in net profit for 2023, signaling positive growth for the German cement maker. The company reported a net profit of 1.93 billion euros ($2.09 billion) for the year, up from EUR1.60 billion in 2022, with revenue remaining steady at EUR21.18 billion.
Strong Financial Performance
The 2023 result from current operations before depreciation and amortization (RCOBD) saw a notable 14% year-on-year increase, reaching EUR4.26 billion. Additionally, the company’s result from current operations (RCO) showed a 22% rise to EUR3.02 billion.
Optimistic Outlook for 2024
Looking ahead to 2024, Heidelberg Materials expects construction-sector demand to stabilize at a low level, considering the potential impact of inflation and high financing costs on residential construction. The company anticipates revenue growth for the coming year and projects its current operations result to range between EUR3.0 billion and EUR3.3 billion.
Share Buyback Initiative
In a strategic move, Heidelberg Materials announced plans for a EUR1.2 billion share buyback program that is set to commence in the second quarter. The buyback is expected to be completed by the end of 2026, with the first tranche launching after the company’s annual general meeting.
Overall, Heidelberg Materials continues to demonstrate strong performance and strategic planning for sustainable growth in the upcoming years.
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