Wienerberger Faces Shares Decline

Wienerberger's shares took a hit after the company released its 2023 net profit and revenue figures, which fell short of consensus expectations. The company also predicted a slow pace in new construction activity for the first half of 2024, with hopes for stabilization in the latter part of the year.

Share Performance

At 1305 GMT, shares were trading 1.5% lower at EUR32.12, after having dropped more than 7% earlier in the session. However, they have seen a 6.3% increase since the start of 2024.

Financial Figures

The Austrian brick maker reported a net profit of 334.4 million euros ($361.4 million), marking a 41% decrease from the previous year. Revenue also saw a decline of 15% to EUR4.22 billion, with operating earnings before interest, taxes, depreciation, and amortization falling by 21% to EUR810.8 million.

Below Expectations

The reported results came in below consensus estimates provided by the company, which had anticipated a net profit of EUR367 million and revenue of EUR4.34 billion.

Market Outlook

Wienerberger attributed the disappointing results to a challenging market environment and foresees the subdued construction activity from the final quarter of last year continuing into the first half of 2024. However, it expects the renovation and infrastructure sectors to show more stability during this period.

Future Projections

Looking ahead to 2024, the company anticipates an operating EBITDA ranging between EUR860 million and EUR890 million, taking into account earnings from its recent Terreal acquisition.