LafargeHolcim reports increase in net sales and EBITDA for 3Q18
Published by Lucy Stewardson,
It has been reported that LafargeHolcim’s 3Q18 net sales have increased by 5.8%, compared on a like-for-like basis with 3Q17. The company has also reported a like-for-like increase of 8.1% in recurring EBITDA.
It has also been reported that like-for-like net sales grew by 5.1% for the first nine months compared to the 2017 period. It is thought that this growth was driven by increased demands, as well increases in sale prices. The company has stated that steep cost inflation in energy and logistics was more than offset by its volume growth, alongside the effectiveness of its pricing and efficiency programmes. LafargeHolcim has noted that all four of its business segments contributed to this increase in net sales.
A robust contribution, supported by favourable market conditions and successful commercial initiatives, was delivered by the company’s North America region. The Latin America region posted lower results in Q318, compared to a very strong performance in Q317. It is thought that this was impacted by weakening demand in several countries. In the Europe region, there were positive overall results, with continued good momentum from most key markets. Signs of stabilisation in key markets were shown by the Middle East Africa region and the Asia Pacific region had another strong quarter, being supported by contributions from China and India, as well as improved performance in Southeast Asia.
LafargeHolcim is in the process of executing its ‘Building for Growth’ strategy for 2022, focusing on four value drivers. These include growth, simplification and performance, financial strength, and vision and people.
The company has stated that its accelerated sales growth and over-proportional increase in recurring EBITDA demonstrates the strength of its Building for Growth strategy. It is expected that this positive momentum will continue in 4Q18 with underlying market trends, such as continued growth in North America, softer cement demand in Latin America, strong markets in Europe, challenging but stabilising conditions in the Middle East Africa region, and continued demand growth in Asia.
Based on these trends, the company’s net sales guidance for 2018 has been adjusted to 4 - 6% on a like-for-like basis, as compared to the 3 - 5% that was previously guided. The recurring EBITDA growth guidance for 2018 has been adjusted to 3 - 5% on a like-for-like basis.
The company has noted that continued headwinds from cost inflation remain challenging. However, its volume growth, solid pricing, and efficiency programmes are expected to result in further growth in recurring EBITDA in 4Q18.
“In 3Q18 we were able to increase our positive momentum and to continue delivering on our Strategy 2022 – ‘Building for Growth’,” said Jan Jenisch, CEO of LafargeHolcim. “Despite headwinds from steep cost inflation, we delivered stronger net sales and our earnings grew even faster. I am very satisfied with our growth in volumes, our solid pricing, and the impact of our cost and efficiency programmes. We are executing at full speed on our Strategy 2022 – ‘Building for Growth’.”
LafargeHolcim operates four business segments: cement, aggregates, ready mix concrete, and solutions and products, including precast concrete, asphalt, mortar, and building solutions.
Read the article online at: https://www.worldcement.com/the-americas/26102018/lafargeholcim-reports-increase-in-net-sales-and-ebitda-for-3q18/
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