German building materials company HeidelbergCement has reported significant revenue increase of 12 per cent to €4.24 million despite a marked increase in cost of energy and transport burdens.
“Despite the continuing uncertainties regarding the supply of energy and raw materials and the associated rise in energy prices, we were able to increase our revenue significantly,” HeidelbergCement chairman of the managing board, Dr Dominik von Achten said.
“Although our result declined in comparison with the same quarter of the previous year, which was exceptionally good, it increased in comparison with the equally strong first quarter of 2020.”
While uncertainty remains for energy costs and the availability of raw materials, von Achten acknowledges there is strong demand for product in all regions – especially for sustainable, low-carbon products.
With that in mind, HeidelbergCement will further implement a number of measures, including a number of carbon capture, use and storage (CCUS) projects worldwide. This will include the first industrial-size CCUS plant in Edmonton, Canada – the largest in North America – with the aim of capturing around 780,000 tonnes of carbon each year.
Additionally, the company will continue its focus on carbon-reduced concrete products, with the expansion of its new EcoCrete brand into European markets.
Despite ongoing market volatility and price risks for raw materials, HeidelbergCement holds a positive outlook for 2022, with a strong revenue increase and slight growth in result expected.
“Demand for our building materials remains high in all regions, despite the persistently volatile market conditions,” von Achten said.
“In addition, the efficiency programmes with a focus on our sales prices and costs are starting to deliver results. We thus expect to see strong growth momentum for the rest of the year.”