Holcim: Profitable Growth Continues, Record Q3
-
Good momentum continues, Q3 net sales
CHF 7,286m , +5.0% LFL -
Record Q3 Recurring EBIT of
CHF 1,534m , +4.7% LFL - Progress with expansion of Solutions & Products
- 2050 net-zero targets validated by Science Based Targets initiative
-
Guidance for FY2021 Recurring EBIT growth upgraded to at least
22% LFL
Performance overview Q3
Group (in million CHF) |
Q3 2021 |
Q3 2020 |
±% |
±%LFL |
Net sales |
7,286 |
6,455 |
+12.9 |
+5.0 |
Recurring EBIT |
1,534 |
1,445 |
+6.2 |
+4.7 |
Performance overview 9M
Group (in million CHF) |
9M 2021 |
9M 2020 |
±% |
±%LFL |
Net sales |
19,842 |
17,148 |
+15.7 |
+12.2 |
Recurring EBIT |
3,516 |
2,639 |
+33.3 |
+35.2 |
“Most importantly, our colleagues have kept their focus on our key long-term value creation drivers to become the global leader in innovative and sustainable building solutions. We are picking up momentum in our strategic portfolio transformation, with the divestment of our business in
Record Recurring EBIT in Q3
Net sales of
Recurring EBIT reached a record
Successful portfolio transformation continues
The company continues its M&A strategy, transforming its portfolio to become the global leader in innovative and sustainable building solutions.
Strengthened leadership in sustainability
Outlook
For 2021 the company will deliver the following, with upgraded guidance on Recurring EBIT growth:
-
Over-proportional growth in Recurring EBIT of at least
22% LFL (from at least18% LFL previously) -
Capex less than
CHF 1.4bn -
Return on invested capital above
8% , cash conversion above40%
Group 9M |
2021 |
2020 |
±% |
±%LFL |
Net sales |
19,842 |
17,148 |
+15.7 |
+12.2 |
Recurring EBIT |
3,516 |
2,639 |
+33.3 |
+35.2 |
Group results by segment 9M |
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
150.0 |
139.2 |
+7.8 |
+7.3 |
Net sales of Cement (CHFm) |
12,203 |
11,135 |
+9.6 |
+14.8 |
Recurring EBIT of Cement (CHFm) |
2,786 |
2,249 |
+23.9 |
+30.4 |
Recurring EBIT margin of Cement (%) |
22.8 |
20.2 |
|
|
|
|
|
|
|
Sales of aggregates (mt) |
201.4 |
190.5 |
+5.7 |
+4.0 |
Net sales of Aggregates (CHFm) |
3,018 |
2,780 |
+8.5 |
+5.9 |
Recurring EBIT of Aggregates (CHFm) |
456 |
322 |
+41.9 |
+38.5 |
Recurring EBIT margin of Aggregates (%) |
15.1 |
11.6 |
|
|
|
|
|
|
|
Sales of ready-mix concrete (m m3) |
34.6 |
31.0 |
+11.6 |
+9.5 |
Net sales of Ready-Mix Concrete (CHFm) |
3,846 |
3,391 |
+13.4 |
+10.0 |
Recurring EBIT of Ready-Mix Concrete (CHFm) |
101 |
0 |
n.m. |
n.m. |
Recurring EBIT margin of Ready-Mix Concrete (%) |
2.6 |
0 |
|
|
|
|
|
|
|
Net sales of Solutions & Products (CHFm) |
2,566 |
1,418 |
+80.9 |
+8.4 |
Recurring EBIT of Solutions & Products (CHFm) |
173 |
71 |
+143.5 |
+20.1 |
Recurring EBIT margin of Solutions & Products (%) |
6.7 |
5.0 |
|
|
Regional performance Q3
Region
The
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
15.9 |
16.2 |
-1.7 |
-1.7 |
Sales of aggregates (mt) |
9.0 |
7.4 |
+21.7 |
+13.6 |
Sales of ready-mix concrete (m m3) |
2.0 |
1.8 |
+8.9 |
+8.9 |
Net sales to external customers (CHFm) |
1,404 |
1,341 |
+4.7 |
+3.1 |
Recurring EBIT (CHFm) |
307 |
317 |
-3.2 |
-6.0 |
Region
The
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
12.8 |
12.7 |
+0.5 |
+0.5 |
Sales of aggregates (mt) |
30.8 |
31.5 |
-2.1 |
-2.6 |
Sales of ready-mix concrete (m m3) |
5.1 |
5.0 |
+1.2 |
-0.4 |
Net sales to external customers (CHFm) |
2,156 |
1,992 |
+8.3 |
+2.8 |
Recurring EBIT (CHFm) |
414 |
397 |
+4.2 |
+1.5 |
Region
The region delivered Recurring EBIT margin expansion in Q3. Volume growth was significant in all business segments, with strong demand in
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
7.2 |
7.0 |
+2.6 |
+2.6 |
Sales of aggregates (mt) |
1.8 |
1.3 |
+36.9 |
+36.9 |
Sales of ready-mix concrete (m m3) |
1.2 |
1.1 |
+8.9 |
+8.9 |
Net sales to external customers (CHFm) |
675 |
623 |
+8.4 |
+16.3 |
Recurring EBIT (CHFm) |
238 |
217 |
+9.7 |
+19.0 |
Region Middle East Africa
The Middle East Africa region showed a solid performance in the quarter with good demand trends in
Middle East Africa Q3 |
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
9.3 |
8.9 |
+4.9 |
-2.5 |
Sales of aggregates (mt) |
1.2 |
1.0 |
+13.2 |
+13.2 |
Sales of ready-mix concrete (m m3) |
1.0 |
0.8 |
+30.5 |
+1.8 |
Net sales to external customers (CHFm) |
653 |
602 |
+8.5 |
+10.7 |
Recurring EBIT (CHFm) |
102 |
106 |
-4.2 |
+8.0 |
Profitable growth continues in the
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
6.0 |
6.0 |
+0.2 |
+0.2 |
Sales of aggregates (mt) |
35.6 |
35.6 |
+0.1 |
-0.6 |
Sales of ready-mix concrete (m m3) |
3.1 |
3.0 |
+1.9 |
+0.8 |
Net sales to external customers (CHFm) |
2,291 |
1,791 |
+27.9 |
+3.4 |
Recurring EBIT (CHFm) |
568 |
504 |
+12.7 |
+5.9 |
Regional performance 9M
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
51.7 |
44.2 |
+17.0 |
+17.1 |
Sales of aggregates (mt) |
25.8 |
20.5 |
+26.0 |
+12.9 |
Sales of ready-mix concrete (m m3) |
5.9 |
5.4 |
+8.7 |
+8.7 |
Net sales to external customers (CHFm) |
4,402 |
3,754 |
+17.3 |
+17.8 |
Recurring EBIT (CHFm) |
1,020 |
754 |
+35.3 |
+35.6 |
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
35.0 |
33.7 |
+4.1 |
+4.1 |
Sales of aggregates (mt) |
86.9 |
83.3 |
+4.3 |
+4.4 |
Sales of ready-mix concrete (m m3) |
15.0 |
13.3 |
+12.9 |
+11.0 |
Net sales to external customers (CHFm) |
6,043 |
5,265 |
+14.8 |
+9.9 |
Recurring EBIT (CHFm) |
883 |
685 |
+28.9 |
+25.4 |
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
20.5 |
17.3 |
+18.0 |
+18.0 |
Sales of aggregates (mt) |
4.7 |
3.5 |
+35.0 |
+35.0 |
Sales of ready-mix concrete (m m3) |
3.5 |
2.8 |
+26.7 |
+26.7 |
Net sales to external customers (CHFm) |
1,944 |
1,603 |
+21.3 |
+36.2 |
Recurring EBIT (CHFm) |
663 |
492 |
+34.7 |
+52.4 |
Middle East Africa 9M |
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
27.2 |
24.5 |
+11.1 |
+6.5 |
Sales of aggregates (mt) |
3.2 |
2.4 |
+30.3 |
+30.3 |
Sales of ready-mix concrete (m m3) |
2.4 |
2.0 |
+22.3 |
+5.6 |
Net sales to external customers (CHFm) |
1,815 |
1,780 |
+2.0 |
+13.6 |
Recurring EBIT (CHFm) |
299 |
243 |
+23.3 |
+46.7 |
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
15.1 |
14.9 |
+1.5 |
+1.5 |
Sales of aggregates (mt) |
80.8 |
80.8 |
-0.0 |
-0.7 |
Sales of ready-mix concrete (m m3) |
7.8 |
7.5 |
+3.1 |
+2.1 |
Net sales to external customers (CHFm) |
5,275 |
4,357 |
+21.1 |
+2.3 |
Recurring EBIT (CHFm) |
948 |
764 |
+24.1 |
+14.7 |
Reconciliation to Group accounts
Reconciling measures of profit and loss to the Holcim Group’s consolidated statement of income:
In million CHF |
9M 2021 (unaudited) |
9M 2020 (unaudited) |
Recurring EBITDA |
5,201 |
4,326 |
Depreciation of right-of-use assets |
(270) |
(269) |
Recurring EBITDA after leases |
4,931 |
4,057 |
Depreciation and amortization |
(1,414) |
(1,419) |
Recurring EBIT |
3,516 |
2,639 |
Restructuring, litigation, implementation and other non-recurring costs |
(181) |
(64) |
Impairment of operating assets |
(24) |
(173) |
Operating profit |
3,312 |
2,401 |
Non-GAAP definitions
Some non-GAAP measures are used in this release to help describe the performance of
A full set of these non-GAAP definitions can be found on our website.
Additional information
Analyst presentation
The analyst presentation of the results is available on our website at www.holcim.com.
Media conference: |
Analyst conference: |
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Important disclaimer – forward-looking statements:
This document contains forward-looking statements. Such forward-looking statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets, as the case may be, including with respect to plans, initiatives, events, products, solutions and services, their development and potential. Although
This document contains inside information within the meaning of the Market Abuse Regulation (EU) (No 596/2014).
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