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Record performance and successful transformation in 2022

Published by , Assistant Editor
World Cement,


  • Record performance, from net sales of CHF 29,189m (+12.9% LFL) to Recurring EBIT of CHF 4.752 billion (+7.2% LFL).
  • Record financial results with EPS of CHF 4.96 and Free cash flow of CHF 3.544 billion.
  • Accelerated growth of Solutions & Products, already reaching 19% of Group net sales.
  • Expansion in the most attractive North American market representing 35% of Group net sales.
  • Accelerating green growth with 21% reduction of CO2 per net sales versus 2021.
  • Board proposes 14% increase in dividend to CHF 2.50 per share, strong 2023 outlook confirmed.

Performance overview

Jan Jenisch, CEO: “2022 was a record year for Holcim. My sincere thanks goes to our 60,000 colleagues worldwide who made this possible. They delivered record performance, navigating challenges from geopolitical uncertainty to inflationary pressure, to keep our customers running at all times. They successfully transformed our company to accelerate green growth, already reaching 19% of our net sales from Solutions & Products and expanding in the most attractive North American market. Advancing our leadership in sustainability, we reduced our CO2 per net sales by 21% this year, and continued to expand our green building solutions with ECOPact reaching 13% of total ready-mix net sales.

“In 2022, we delivered record financial results with CHF 29.2 billion in net sales, CHF 4.8 billion in Recurring EBIT, 9.5% ROIC and a record leverage ratio of 0.9x. Holcim has never been stronger. This gives us the freedom to invest in our future and further accelerate green growth with continued acquisitions and the ongoing decarbonisation and digitalisation of our operations.

“As we enter 2023, we are continuing our fast pace. We’ve already made seven acquisitions in the first two months of the year, including Duro-Last, a roofing systems leader in the most attractive North American market. We also acquired German roofing leader FDT to expand our commercial roofing presence in Europe, as well as a range of bolt-ons across Europe and the US. I look forward to another year of continued profitable growth and fast-paced transformation, to become the global leader in innovative and sustainable building solutions.”

Record net sales and Recurring EBIT

Net sales of CHF 29,189 million for 2022 were up +12.9% on a like-for-like basis compared to the prior year. The increase was driven by the fast expansion of Solutions & Products, which grew by 54% compared to the prior year.

Recurring EBIT reached a record CHF 4,752 million for 2022, up +7.2% on a like-for-like basis compared to the prior year. This record result was driven by very strong margins in the roofing business as well as positive price over cost for cement, aggregates and ready-mix combined.

Reported net income Group share reached CHF 3,308 million, up +44.0% compared to the prior year. Reported earnings per share reached CHF 5.48, up +46.9%.

Earnings per share before impairment and divestments and before the resolution with the US Department of Justice (DOJ) increased by a significant 24.6% at CHF 4.96.

Free Cash Flow after leases and before the DOJ resolution reached CHF 3,544 million, or a cash conversion ratio of 54%.

Holcim’s net financial debt was CHF 6,032 million at the end of 2022 for a record-low leverage ratio of 0.9x.

The Group’s return on invested capital for 2022 was 9.5%, in line with our Strategy 2025 target of 10%.

Successful transformation

Holcim is making strong progress on its portfolio transformation with 23 M&A transactions in the year: six acquisitions in Solutions & Products, 13 bolt-ons in Aggregates and Ready-Mix Concrete, and four divestments, notably India and Brazil. The Solutions & Products segment reached 19% of the Group’s total net sales, up from 8% for 2020, putting the company on track to reach its strategic goal of 30% of net sales from Solutions & Products by 2025.

Continued expansion in roofing

With the announced acquisition of Duro-Last in February 2023, roofing and insulation businesses are on track to reach pro-forma net sales of USD 4 billion in 2023, or 10% of the USD 40 billion North American roofing market.

In this fast-growing North America roofing market, Holcim is focused on the most attractive segments, delivering above-market profitable growth with system and specification selling. From Elevate’s (formerly Firestone Building Products) self-adhering membranes to Malarkey’s circular roofing shingles, Holcim has generated a significant increase in profitability, with a Recurring EBIT margin of 19% in roofing in 2022.

Delivering high value, system selling represents around 80% of Holcim’s sales, from full roof design and insulation to installation systems. Holcim is positioned for continued growth in the resilient repair & refurbishment market, with over 70% of sales from re-roofing. With the successful integration of its roofing acquisitions, Holcim has generated a significant profitability increase in this business leading to an enterprise value to EBITDA multiple5 of 7x.

Leading in sustainability

Holcim continued to advance its leadership in sustainability with the reduction of CO2 per net sales of 21% in 2022, with a target to reduce it by over 10% in 2023. It continues to expand its green building solutions with ECOPact low-carbon concrete reaching 13% of Ready-Mix Concrete net sales in 2022, on target to reach 25% by 2025. ECOPlanet low-carbon cement also delivered net sales growth and is now available in 27 markets. Scaling up its ECOPlanet range, Holcim launched Europe’s first calcined clay cement operation in France, with a proprietary technology enabling 48% lower CO2. Driving circular construction, Holcim recycled 6.8 million tons of construction & demolition waste in its products in 2022, on track to reach 10 million tons by 2025.

Recognising the scalability of its technologies, Holcim was selected for two investments from the European Union Innovation Fund for its breakthrough Carbon Capture Utilisation and Storage projects in Germany and Poland, for a total of EUR 328 million. The company was recognised as a global sustainability leader with a CDP “Double-A” ranking in Climate and Water, one of 15 companies in Europe out of 15,000. Its ESG profile reached an industry-leading ranking with Moody’s, placing first in its sector with a score of 71/100. Continuing to invest in sustainability, Holcim’s Green CAPEX reached CHF 403 million, 15% higher than in 2021 and 28% of the 2022 total. Continuing its rigorous science-driven approach, Holcim upgraded its 2030 net zero targets to be in line with the 1.5? scenario, and validated them with the Science Based Targets initiative (SBTi).

Dividend increase and strong outlook confirmed

In light of the company’s record 2022 financial performance and confidence in the future, the Board of Directors proposes a 14% increase in dividend to CHF 2.50 per registered share.

Holcim has started 2023 with continued fast pace, with seven acquisitions in the first two months and is confident that it will continue the fast-paced execution of its Strategy 2025 – Accelerating Green Growth, delivering superior performance, successful transformation and leadership in sustainability.

Holcim expects continued profitable growth with:

  • Net sales growth of 3%-5% like-for-like (LFL).
  • Over-proportional growth in Recurring EBIT (LFL).
  • Free Cash Flow after leases of around CHF 3 billion.
  • Reduction of CO2 per net sales by over 10%.

Read the article online at: https://www.worldcement.com/europe-cis/24022023/record-performance-and-successful-transformation-in-2022/

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