Wienerberger (WIE) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue was €4,224.3 mn, down 15%, and Operating EBITDA was €810.8 mn, down 21%; a 19.2% margin reflected cost control and efficiency measures amid weak demand.

• FY 2024 Operating EBITDA guidance is €860–890 mn, including an estimated €90 mn proportional Terreal contribution and synergies.

Financial highlights

• FY revenue €4,224.3 mn, down 15%; Operating EBITDA €810.8 mn, down 21%; reported EBITDA €783.3 mn, down 24%.

• Operating EBITDA reconciliation: €10.6 mn income from non-core asset sales and €38.0 mn of structural adjustment costs; FX reduced revenue by €97.8 mn.

• EBIT €477.3 mn, down 34%; profit before tax €424.3 mn; net profit attributable to parent equity holders €334.4 mn, down 41%; EPS €3.17 versus €5.17.

• Q4 revenue €938.3 mn, down 17%; Operating EBITDA €145.7 mn, down 28%, with a 15.5% margin versus 17.8%.

• Free cash flow €257.5 mn versus €597.7 mn; working capital change was -€198.5 mn.

Outlook and guidance

• FY 2024 Operating EBITDA guidance: €860–890 mn, including an estimated €90 mn Terreal contribution and synergies; EBITDA margin expected around 19%.

• Guidance assumes end-market level easing from 72% in 2023 to 69% in 2024; market impact -€85 mn, self-help +€40 mn, cost management +€20 mn and scope +€90 mn.

• H1 2024 end-market performance is expected below 2023; residential new-build markets could stabilize or improve slightly in H2.

• Price increases of 1%–2% are intended to cover 2%–3% cost inflation; personnel costs are expected to rise ~5%, while raw materials are flat, energy falls ~3% and granulates fall ~4%.

• Further 2024 cost savings of ~€20 mn and €40 mn of self-help EBITDA contribution are expected, alongside continued pricing discipline.