3rd quarter activity shows positive signs
Activity in the 3rd quarter of 2015
HERIGE Group activity held up well in the 3rd quarter of 2015. Turnover remained stable at €138.1 million, dipping -0.3% on the same period in 2014.
Third-quarter turnover for Materials trading edged up 0.5% to stand at €94.4 million despite a persistently difficult market backdrop for public sector works, whilst the Group’s Concrete industry division fared less well, with turnover down 5.8% on the back of lower volumes despite more resilient demand for ready-mix concrete. Industrial Joinery enjoyed positive growth, with the first benefits of energy efficiency rebates (CITE) resulting in a 5.4% increase in turnover.
Turnover for the first nine months of 2015 amounted to €433.1 million, declining by a moderate 2.7% on the previous year. Group activity held steady overall and shows positive signs despite a persistently weak construction market (5.5% drop in individual single-family housing starts over the last 12 months).
Development and outlook
The first signs of a market recovery linked to government measures (Loi Pinel tax relief on property, broader scope for interest-free loans) are positive indicators that suggest a slight turnaround in activity as the year draws to a close.
Development continues with:
- the modernisation of HERIGE’s Materials trading and Concrete industry brands under the new banners of VM and EDYCEM in order to strengthen the Group’s proximity with its clients;
- new innovation such as the launch of the new Industrial Joinery product, AM-X, which recently won an award at the building industry flagship show, the Mondial du Bâtiment 2015 (BATIMAT).
The complementary fit between HERIGE’s activities and the implementation of new dynamic and targeted measures continue to reinforce the Group’s positioning as a specialist in construction solutions.
NEXT PRESS RELEASE: 2015 turnover on 2 February 2016 (after the stock exchange closes).
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