Strong business recovery with growth of 11.3% in the third quarter
Return to growth in the third quarter
HERIGE Group posted turnover of €160 million for the third quarter of 2020, up 11.3% (or 9.1% like-for-like) on the same period in 2019.
Despite a negative calendar effect, all Group activities saw a return to growth during the quarter, picking up from June and benefiting from a catch-up effect following the confinement period due to the health crisis.
- Turnover for Building Materials Trading rose 11.8% like-for-like, propelled by the public works sector and structural activities, and progressing despite the negative calendar effect (one fewer day).
- Concrete Industry reported growth of 14.5% like-for-like (29.6% 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 ended the quarter with growth of 9.3%, despite a negative calendar effect (two fewer days) and the two-month shutdown of the Boué plant. The activity posted a net increase in its order book, benefiting from significant growth in its distribution channels focused on the renovation market and double-digit growth for its AM-X product.
For the first nine months of 2020, HERIGE Group’s consolidated turnover amounted to €413.9 million, down by just 8% (9.4% like-for-like) compared with a drop of 16.5% (17.5% like-for-like) in the first half of the year.
Outlook and developments
Despite a macroeconomic and health environment that remains uncertain, the business recovery in the third quarter combined with strict management of expenses and investments gives the Group confidence in its ability to limit the impact of the crisis on its full-year profitability and cash position.
In addition, the decisions taken under the Government’s recovery plan, which provides for energy efficiency rebates among other measures, should help the sector to maintain a good level of activity.
Finally, since the building-construction sector has been recognized as essential to the functioning of the country, all of the Group's activities are continued during the new confinement phase. Thus, all the sites (trading points of sale, factories, concrete plants) remain open with reinforced vigilance of existing health protocols.
Benoit Hennaut, Chaiman of the Executive Board declares: “ Thanks to our teams’ commitment, and to the solidarity and responsible spirit that has always driven HERIGE, the business dynamic has been able to continue favorably. I am proud of the agility that everyone is once again demonstrating following the French Government announcements to allow ATLANTEM, EDYCEM and VM to continue to serve our customers under the most optimal conditions. In the current context, maintaining our activities constitutes an important economic commitment towards the entire building industry. We will operate with the utmost sanitary rigour and strict compliance with government guidelines to guarantee the imperative safety of all.”
NEXT PUBLICATION: 2020 Q4 turnover on February 9, 2021 (after the close of trading)
All our financial communications are available on our website www.groupe-herige.fr
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