Continued business recovery with growth of 10.5% in the fourth quarter
Sustained growth across all businesses
HERIGE Group posted turnover of €168.6 million for the fourth quarter of 2020, up 10.5% (or 8.6% like-for-like) on the same period in 2019.
The Group’s three businesses saw a return to growth during the quarter, despite a negative calendar effect (Building Materials Trading and Concrete Industry) and another lockdown period due to the health crisis.
- Turnover for Building Materials Trading rose 7.7%, propelled by general contracting and very high business levels in the public works sector, despite the negative calendar effect (one fewer day).
- Concrete Industry reported growth of 19.3% like-for-like (30.8% as reported), taking into account a negative calendar effect (one fewer day). This performance was buoyed by strong sales in the ready mix concrete division and pre-fabricated concrete products, and the integration of new plants in the Sarthe Mayenne sector at current scope.
- Industrial Joinery returned to double-digit growth of 10.8% (calendar effect of two more days) despite the gradual recovery of the Boué plant which limited PVC capacity over the quarter. The business recorded significant growth in all of its distribution channels focused on the renovation market and maintained a positive momentum driven by new orders for its AM-X product.
For 2020 as a whole, HERIGE Group posted turnover of €600.4 million, a limited decline of 3.5% (down 4.9% like-for-like, of which a drop of 17.5% in the first half of the year and growth of 8.9% in the second). This demonstrates the resilience of the Group’s business model in the particularly difficult economic and health conditions that the market faced during the first half of the year.
Outlook and developments
In view of the sustained activity recorded during the second half of the year for the Group’s three businesses (up 10.9% like-for-like) combined with strict management of expenses and investments, HERIGE confirms that the effects of the economic and health crisis on its full-year profitability and cash position will be limited. In 2021, the Group intends to strengthen its performance approach in the context of an uncertain market.
Benoît Hennaut, Chairman of the Executive Board of HERIGE, said: “In a completely unprecedented context in 2020, the Group has been able to adapt and rethink its organization in order to press ahead with its activities. Thanks to the agility, commitment and professionalism of all our teams, HERIGE has had a very resilient year. Firmly customer-oriented, our activities are based on strong markers such as an enhanced service offering, innovation, and social and environmental commitment.”
NEXT PUBLICATION: 2020 results on March 30, 2021 (after the close of trading)
All our financial communications are available on our website www.groupe-herige.fr