DAVY VIEW

There are no surprises in HeidelbergCement’s FY18 results. Management’s initial guidance for 2019 is in-line with that provided on February 19th (3-9% like-for-like (LFL) EBITDA growth), and the outlook commentary is positive as expected. The conference call will be more interesting to determine (a) progress on strategic initiatives and (b) what Q1 trading looks like. We suspect the year has started well, which should underpin consensus estimates. That should be enough for this stock with the promise of more to come given easing energy headwinds. We retain our ‘Outperform’ rating.