Solid Q3 growth of 9.4% despite a less favorable market environment
Contribution of the three businesses to Q3 2022 growth
In third-quarter 2022, HERIGE maintained a strong growth dynamic despite a complex macroeconomic environment. Turnover reached €173.7 million, an increase of 9.4% (up 6.6% like-for-like). Growth was driven by the Group's three businesses, on the back of a favorable price effect, due to the implementation of performance initiatives, and, to a lesser extent, a favorable volume/product mix effect.
- Turnover for Building Materials Trading was up 4.9% on the same period in 2021, underpinned by the activity in the public works sector. In Q4, the business should be further boosted by the rollout of the new Self-Service and Tile concepts.
- The Concrete Industry business, up 11.6% (up 1.6% like-for-like), continued to benefit from a strong commercial performance and resilient markets in Western France.
- Industrial Joinery expanded by 19.4%, up 14.7% like-for-like. Growth was stimulated by continued strong demand in renovation market distribution channels and for the AM-X product.
Overall, in the first 9 months of 2022, HERIGE recorded turnover of €586.6 million, an increase of 10.0% (up 8.1% like-for-like), with the implementation of a performance strategy for passing on inflationary cost increases.
Outlook and developments
The plan to acquire 100% of the share capital of Poralu Group is being finalized. The transaction is expected to close by the end of 2022 at the latest.
In an environment complicated by Europe's geopolitical situation and energy crisis, the Group is adapting quickly to the consequences of rising interest rates and inflation. Each of the divisions is making constant efforts to find the right balance between volumes and operating profitability. In this uncertain environment, HERIGE remains focused on creating value, by integrating its latest acquisitions, consolidating its performances, rolling out its energy efficiency offers and accelerating its CSR initiatives.
NEXT PUBLICATION: Q4 2022 turnover on February 7, 2023 (after the close of trading)
All our financial communications are available on our website: www.groupe-herige.fr/en
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