Growth of 4.9% in first-quarter 2019 (like-for-like)
Further to its conversion to French GAAP, HERIGE Group decided to change its reporting segments in order to align the Building Materials Trading, Concrete and Industrial Joinery segments with the relevant business activities. In addition, companies in the process of being sold have been included in the “Other” category for reporting purposes.
Strong start to the year with turnover up 4.9%
HERIGE Group posted turnover of €154 million for the first three months of 2019, up 4.9% like-for-like on the same period in 2018, despite one less working day and a persistently weak new construction market, with a 7.8% drop in housing starts in the first quarter of 2019 compared to the same period in 2018.
- Turnover for Building Materials Trading climbed 2.5% like-for-like, propelled by the public works sector and sales to individual clients;
- Concrete Industry turnover continued its upward trajectory, rising 23.1% thanks notably to favorable weather conditions, a sustained increase in volumes of ready-mix concrete and in pre-fabricated concrete products;
- The Industrial Joinery sector, despite a good momentum in the AM-X business, was down 6.8%, penalized by an unfavorable basis of comparison and the consequences of a lack of communication from the public authorities regarding energy efficiency rebates (CITE).
Business in first-quarter 2019 also benefited from the catch-up effect of delayed new housing starts affected by strikes in the overseas territories.
Outlook and developments
Thanks to the strategy of resuming its investment program, HERIGE Group should benefit from:
- the addition of three concrete plants, following the acquisition of Béton du Poher in early April 2019;
- the start-up of a new generation production site in Fougères in the second half of 2019, dedicated entirely to AM-X.
NEXT PUBLICATION : Turnover for Q2 2019 on July 23, 2019 (after the stock exchange closes)
All our financial communications are available on our website www.groupe-herige.fr