DAVY VIEW

Yesterday (September 16th), HeidelbergCement (HEI) outlined an ambitious set of new targets as part of its “Beyond 2020” Capital Markets update. The group is aiming to improve EBITDA margins by 300bps and generate a ROIC in excess of 8% by 2025. Demanding goals to simplify the portfolio, reduce leverage to 1.5-2.0x, invest in digitalisation and accelerate emission reduction plans were likewise unveiled. The group also updated on Q3 trading, which has been strong (EBITDA up double-digit year-on-year in July and August), helped by lower costs and solid pricing.