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Holcim announces financial results

Published by , Assistant Editor
World Cement,


  • Record Q3 net sales of CHF 8045 million (+16.3% LFL)
  • Outlook 2022 upgraded: net sales growth to at least 12% (LFL), Recurring EBIT to mid-single digit growth (LFL)
  • Debt leverage of around 1x in 2022
  • Share buyback up to CHF 2 billion

Jan Jenisch, CEO: “I thank all members of the Holcim family for delivering another quarter of record results while navigating challenging times.

“Q3 was a quarter of record performance and successful transformation for Holcim. We continued to expand Solutions & Products with four acquisitions and delivered ten bolt-ons in aggregates and ready-mix this year. We also completed the divestments of India and Brazil with cash proceeds of US$7.3 billion. Solutions & Products is already reaching 25% of our net sales in 20221, driven by the roofing business, which is delivering a record Recurring EBIT margin of 20%. We strengthened our footprint in the attractive North America market, accounting for 40% of sales and 41% of Recurring EBIT.

“With these achievements we are accelerating our decarbonisation and significantly improving our sustainability profile this year.

“These record results give us the confidence to upgrade our 2022 guidance for net sales, Recurring EBIT and leverage, and launch a share buyback program.”

Continued record performance

In Q3 2022, Holcim delivered another quarter of record results with net sales of CHF 8045 million, up 16.3% on a like-for-like basis (LFL) compared to the prior year, or +10.4% of absolute growth. Net sales over the first nine months of 2022 were CHF 22 725 million, or 13.9% higher LFL than the prior-year period.

Recurring EBIT reached a record CHF 1551 million in the third quarter of 2022, up 7.7% LFL compared to the prior-year period, or +1.2% of absolute growth. Recurring EBIT for the nine months was also a record at CHF 3724 million, an increase of 6.5% LFL over the prior-year period. Successful transformation

Q3 was a quarter of successful transformation for Holcim, driven by its portfolio changes, the continued expansion of Solutions & Products, its strengthened geographic footprint and improved sustainability profile.

Portfolio changes

This quarter, Holcim continued to transform its portfolio with four acquisitions in Solutions & Products. In Europe, the Group acquired Cantillana in Belgium and Izolbet in Poland, leaders in specialty building solutions. In the US, Holcim acquired SES Foam, a leader in bio-based insulation systems, and Polymers Sealants North America, a leader in coating, adhesive and sealant solutions. In addition, the company signed a total of ten bolt-on acquisitions in the nine-month period in its aggregates and ready-mix concrete segments. In Q3, Holcim also successfully closed the sale of its businesses in India and Brazil, resulting in cash proceeds of US$7.3 billion.

Expansion of Solutions & Products

With the expansion of Solutions & Products, Holcim is well-positioned to reach 25% of Group net sales in this segment for 2022 on a pro forma basis, on target to deliver 30% by 2025.

Fast expansion in attractive North American market

In Q3, Holcim strengthened its footprint in the attractive North America region, representing 40% of the Group’s net sales and 41% of Recurring EBIT3. With this fast expansion, Holcim’s net sales in mature markets with resilient earnings profiles are projected to increase from 59% in 2019 to 77% in 2022 on a pro forma basis.

Strengthened sustainability profile

Strengthening its sustainability profile, Holcim’s carbon emissions per million of net sales will be 30% lower in 2022 on a pro forma basis compared to prior year.

Accelerating green growth

Accelerating green growth in Q3, Holcim reached 15% of the Group’s total sales of ready-mix concrete with ECOPact, the world’s broadest range of green concrete. Sales of ECOPlanet green cement also grew significantly and is now available in 26 markets worldwide. In Europe, the EU Innovation Fund awarded Holcim two grants for carbon capture, utilisation and storage projects in Germany and Poland.

At New York Climate Week in September, Holcim announced the launch of the world’s first 1.5°C science-based framework to decarbonize its industry, resulting from its partnership with the Science Based Targets initiative (SBTi). This framework was independently developed by the SBTi, in collaboration with an Expert Advisory Group representing academia, civil society and industry.

Building better with less with its proprietary 3D concrete printing technology, Holcim’s 14Trees won the Financial Times / International Finance Corporation Transformational Business Award for its work in 3D printing homes and schools in Africa using advanced materials and technologies. The award highlights ground-breaking, long-term private sector solutions to major development challenges like bridging the world’s infrastructure gap sustainably.

Profitable growth to continue with attractive returns

With the cash proceeds of US$7.3 billion from the divestments of India and Brazil, Holcim will fund profitable growth and continued acquisitions while maintaining strict value discipline. The cash will also be used to maintain a strong balance sheet, targeting debt leverage of around 1x in 2022, and deliver attractive returns for its shareholders, with the launch of a share buyback program.

This share buyback program of up to CHF 2 billion will start in November 2022, subject to the necessary regulatory approvals. Under this program, Holcim plans to repurchase up to 40 million shares until May 2023, to be approved for cancellation at the Annual General Meeting on 4 May 2023. The share buyback will be executed on a 2nd trading line on the SIX Swiss Exchange. The share buybacks will depend on market conditions.

Changes in Group organisation

In line with “Strategy 2025 – Accelerating Green Growth,” Holcim is further evolving the efficiency of its organisational model. The Board of Directors has decided to integrate key markets that share similar growth dynamics into one Asia, Middle East & Africa (AMEA) region. Martin Kriegner, current Region Head Asia Pacific, is appointed to take over the responsibility of the broader AMEA region.

Miljan Gutovic will continue to lead the Europe region. In addition, he will take over the Group's Operational Excellence organisation, with a focus on decarbonisation. In this capacity he will lead the company’s increase of renewable and green energy use; the expansion of green formulation with innovative low-emission raw materials such as calcined clay and construction & demolition waste; the acceleration of green mobility to improve efficiencies and reduce the environmental impact of logistics; and the deployment of next-generation technologies such as carbon capture utilisation and storage as well as the digitalisation of plants.

The company’s profit & loss responsibility is now assigned to the five leaders of Region AMEA, Region Europe, Region North America, Region Latin America and the Solutions & Products Global Business Unit.

Outlook and guidance 2022

Holcim upgrades its 2022 net sales and Recurring EBIT guidance with:

  • Net sales growth guidance upgraded from at least 10% like-for-like to at least 12% like-for-like, net sales reaching CHF 29 billion
  • Double-digit net sales growth in Solutions & Products upgraded to achieve net sales of above CHF 5.5 billion
  • Recurring EBIT guidance upgraded from positive growth like-for-like to mid-single digit growth like-for-like
  • Free Cash Flow4 above CHF 3 billion before divestments and resolution with the US Department of Justice
  • Debt leverage of around 1x
  • Strengthened sustainability profile with reduction in CO2 per million of net sales by 30% in 2022

Read the article online at: https://www.worldcement.com/europe-cis/31102022/holcim-announces-continued-record-performance/

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