DAVY VIEW

HeidelbergCement (HEI) more than met its COVID-adjusted targets for 2020 by delivering major cost savings, growing EBITDA and significantly lowering debt. To its credit, the group has met or bettered expectations in this regard all year. That positive momentum should continue with possible disposals (California, Spain), while new sustainability-linked remuneration targets will be well received. While outlook comments are broadly positive, rising input costs, energy in particular, are likely to make for a tricky year ahead requiring significant price hikes to offset.