Holcim deliver excellent first-half performance

Results for six months ended 30 June reflect strengthened earnings profile of the Group

HOLCIM have reported an excellent first-half performance with net sales of CHF13,067 million, up 7.4% on an organic basis compared with the prior year, with growth reflecting the strengthened earnings profile of the Group as it moves its portfolio towards businesses with superior growth and profitability.

Recurring EBIT for the first half of 2023 grew over-proportionately compared with net sales, with organic growth of +13.4% compared with the prior year, reaching CHF2,043 million. Profitability increased sharply in the second quarter of 2023 with a record recurring EBIT margin of 21.1%. As a result, Holcim say they are well on track to deliver an industry-leading margin of above 16% in 2023.

Earnings per share in the first half of 2023 were CHF2.19, 15.3% higher than in the prior-year period and reaching an all-time high since the 2015 acquisition. Free cash flow after leases was CHF79 million in the first half, compared with CHF275 million in the same period of 2022.

The company is continuing to invest in profitable growth with CHF1.8 billion in the first half of 2023 for 18 value-accretive acquisitions – CHF1.3 billion for eight acquisitions in the high-growth Solutions & Products segment and CHF0.5 billion for 10 highly synergistic acquisitions to grow Aggregates and Ready-Mix, focusing on Europe and North America.

Holcim chairman and chief executive officer Jan Jenisch said: ‘I thank all members of the Holcim family for delivering excellent results in the first half. I am excited about our record EBIT margin in the second quarter, putting us well on track to deliver industry-leading margins in 2023. This confirms Holcim’s strong positions across all markets, delivering superior profitability and growth with leading sustainable building solutions and brands.

‘Our excellent financial results, from net sales and recurring EBIT to our record earnings per share, confirm the strength of our strategy, with continued profitable expansion in the attractive North American market and accelerated green growth in Europe and Latin America. We continued the fast- paced execution of our transformation with 18 value-accretive acquisitions, continuing to expand our Solutions & Products business while strengthening our Aggregates and Ready-Mix segments.’