2019, another year of growth: 2.8%
Slight downturn in the fourth quarter
HERIGE posted turnover of €152.6 million in the fourth quarter of 2019, down a slight 3.1% like-for-like on the same period in 2018. After a strong performance over the first nine months of the year, business was impacted in the fourth quarter by complex weather conditions in October and a negative calendar effect. As a result, turnover for Building Materials Trading edged back by 1.9%, the Concrete Industry business by 5.2% – penalized by an unfavorable basis of comparison (+16.1% growth in 2018) – and the Industrial Joinery business by 5.0%.
HERIGE reported full-year growth of 2.8% in 2019 (2.6% like-for-like) with turnover of €622.1 million:
- Turnover for Building Materials Trading rose 1.2% (like-for-like), propelled once again by the public works sector;
- Concrete Industry reported growth of 18.7% (11.1% like-for-like) thanks to a buoyant market, strong sales in the ready-mix concrete division and prefabricated concrete products, and the integration of Béton du Poher over nine months;
- Turnover for Industrial Joinery fell 2.7% (like-for-like), mainly owing to a decrease in volumes of PVC and aluminum joinery, partially offset by strong sales momentum in the AM-X range, wood and closures.
Outlook and developments
In 2020, EDYCEM, HERIGE Group’s Concrete subsidiary, will continue negotiations with BHR to acquire six concrete plants in Sarthe and Mayenne (France), expected to be consolidated from March 1, 2020.
In addition, Building Materials Trading will continue to focus on business development, driven by the fresh impetus provided by Eric Rouet, Managing Director of the division, in order to sustain its operating margin.
The Group remains confident in the buoyancy of its markets in 2020.
NEXT PUBLICATION: 2019 results on April 1, 2020, after the close of trading
All our financial communications are available on our website: https://www.groupe-herige.fr/en/