HeidelbergCement finished the first half of 2020 with a good result. Despite the weak demand in many countries due to the coronavirus and the corresponding declines in revenue, the result from current operations before depreciation and amortisation remained almost at the level of the previous year.
“In the face of unprecedented challenges, we performed very well in the first half of 2020,” stated Dr Dominik von Achten, Chairman of the Managing Board of HeidelbergCement. “In the second quarter, revenue dropped in many countries, in some cases by double-digit percentages. Nevertheless, we achieved a good result, which was almost at the previous year’s level. The successful implementation of our COPE action plan played a large part in this. I would like to express my sincere thanks to our managers and all employees worldwide for their outstanding performance during this difficult phase.”
As early as February, the company launched the COPE action plan, a comprehensive package of measures with a focus on cost savings and preserving liquidity. These measures took effect especially in the second quarter and made a significant contribution in compensating for the adverse impact on results due to coronavirus-related declines in revenue, largely through savings in costs, investments and in many other areas.
Development of revenue and results
Group revenue decreased by 10.4% in comparison with the previous year to €8,254 million (previous year: 9,212). Excluding consolidation and exchange rate effects, the decline amounted to 10.2%. In addition to lower sales volumes, the decline in revenue is also due to the changed business policy at HC Trading.
The result from current operations before depreciation and amortisation fell by 2.4% to €1,404 million (previous year: 1,438). Excluding consolidation and exchange rate effects, the operational decline amounted to €31 million and is primarily due to the drop in revenue related to COVID-19. However, significant savings resulting particularly from the COPE action plan launched in February 2020 had an offsetting effect. The result from current operations decreased to €710 million (previous year: 754).
The additional ordinary result of €-3,490 million (previous year: -128) was particularly affected by impairment of goodwill amounting to €2,684 million and of other fixed assets totalling €769 million due to the COVID-19-related revaluation of the asset portfolio of the HeidelbergCement Group. The financial result rose by €19 million to €-157 million (previous year: -176). At €138 million (previous year: 150), expenses for income taxes were 7.7% below the previous year’s level.
Overall, the Group share of the net result for the period totalled €-3,133 million (previous year: 212). Excluding non-recurring effects from the impairment of goodwill and other assets, the Group share rose by 5% to €356 million (previous year: 340)