Holcim: Record Results, Strategy 2022 Achieved One Year in Advance
-
Record financial performance with over-proportional Recurring EBIT growth of +
25.7% LFL, EPS1 ofCHF 3.98 , +30% and ROIC of8.9% -
Record Free Cash Flow2 at
CHF 3,264m -
Board proposes
10% increase in dividend toCHF 2.20 -
Expansion of Solutions & Products with milestone acquisitions of Firestone,
Malarkey and PRB Group - Outlook 2022: growth momentum to continue in all regions
Ad Hoc Announcement Pursuant to Art. 53 of the SIX Exchange Regulation Listing Rules
Performance overview
Group (in million CHF) |
2021 |
2020 |
±% |
±%LFL |
Net sales |
26,834 |
23,142 |
+16.0 |
+11.3 |
Recurring EBIT |
4,612 |
3,676 |
+25.5 |
+25.7 |
Recurring EBIT margin (%) |
17.2 |
15.9 |
|
|
Net income, Group share |
2,298 |
1,697 |
+35.4 |
|
Net income before impairment and divestments3 |
2,448 |
1,900 |
+28.8 |
|
EPS in CHF |
3.73 |
2.74 |
+36.1 |
|
EPS before impairment and divestments in CHF |
3.98 |
3.07 |
+29.6 |
|
Free Cash Flow2 |
3,264 |
3,249 |
+0.4 |
|
Net financial debt |
9,977 |
8,483 |
+17.6 |
|
“We delivered record financial performance across all our key metrics with net sales of
“We delivered our Strategy 2022 one year in advance, setting solid foundations for our next era of growth. Putting sustainability at the core of our strategy, we accelerated the deployment of our green building solutions, from ECOPact green concrete and ECOPlanet green cement to smart roofing and energy efficiency systems. My sincere thanks goes to our 70,000 people who made all of this possible while keeping safety top of mind at all times.”
Record Financial Performance
Recurring EBIT reached a record
Earnings per share1 increased by +
Free Cash Flow after leases amounted to
Net debt amounted to
Return on
Accelerating Expansion of Solutions & Products
With the acquisition of
The milestone acquisition of Firestone was followed by the acquisitions of
Further strengthening leadership in sustainability
In 2021,
Change in Executive Committee
The Board of Directors appointed
Toufic joined the Group in 1998 as Director Strategy & Development in the US. He has a strong track record of leading Holcim’s ready-mix concrete, aggregates and cement businesses in
He succeeds
Outlook and Guidance 2022
- Double-digit net sales growth in Solutions & Products
- Accelerated progress towards 2025 sustainability targets
-
Growth in net sales of above
6% like-for-like - Positive growth in Recurring EBIT like-for-like
-
Free cash flow2 above
CHF 3 billion
In light of the company’s record 2021 financial performance and confidence in the future, the Board of Directors proposes a
Group Q4 (in million CHF) |
2021 |
2020 |
±% |
±%LfL |
Net sales |
6,992 |
5,994 |
+16.7 |
+8.6 |
Recurring EBIT |
1,096 |
1,037 |
+5.6 |
+1.3 |
Recurring EBIT margin (%) |
15.7 |
17.3 |
|
|
Group Full Year (in million CHF) |
2021 |
2020 |
±% |
±%LfL |
Net sales |
26,834 |
23,142 |
+16.0 |
+11.3 |
Recurring EBIT |
4,612 |
3,676 |
+25.5 |
+25.7 |
Recurring EBIT margin (%) |
17.2 |
15.9 |
|
|
Net income, Group share |
2,298 |
1,697 |
+35.4 |
|
Net income before impairment and divestments3 |
2,448 |
1,900 |
+28.8 |
|
EPS before impairment and divestments (CHF) |
3.98 |
3.07 |
+29.6 |
|
Cash flow from operating activities |
5,045 |
4,618 |
+9.3 |
|
Free Cash Flow after leases |
3,264 |
3,249 |
+0.4 |
|
Net financial debt |
9,977 |
8,483 |
+17.6 |
|
Group results by segment (in million CHF) |
2021 |
2020 |
±% |
±%LfL |
Sales of cement (mt) |
200.8 |
190.4 |
+5.5 |
+5.0 |
Net sales of Cement |
16,399 |
15,043 |
+9.0 |
+13.3 |
Recurring EBIT of Cement |
3,587 |
3,112 |
+15.3 |
+20.3 |
Recurring EBIT margin of Cement (%) |
21.9 |
20.7 |
|
|
|
|
|
|
|
Sales of aggregates (mt) |
269.9 |
256.3 |
+5.3 |
+3.9 |
Net sales of Aggregates |
4,037 |
3,713 |
+8.7 |
+6.1 |
Recurring EBIT of Aggregates |
618 |
432 |
+43.0 |
+39.8 |
Recurring EBIT margin of Aggregates (%) |
15.3 |
11.6 |
|
|
|
|
|
|
|
Sales of ready-mix concrete (m m3) |
46.5 |
42.3 |
+10.0 |
+7.3 |
Net sales of Ready-Mix Concrete |
5,167 |
4,610 |
+12.1 |
+8.8 |
Recurring EBIT of Ready-Mix Concrete |
155 |
32 |
+389.0 |
+439.2 |
Recurring EBIT margin of Ready-Mix Concrete (%) |
3.0 |
0.7 |
|
|
|
|
|
|
|
Net sales of Solutions & Products |
3,612 |
1,893 |
+90.8 |
+10.1 |
Recurring EBIT of Solutions & Products |
252 |
100 |
+151.1 |
+13.8 |
Recurring EBIT margin of Solutions & Products (%) |
7.0 |
5.3 |
|
|
Regional performance
Region
The
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
69.7 |
63.0 |
+10.7 |
+10.7 |
Sales of aggregates (mt) |
34.6 |
28.1 |
+23.3 |
+12.2 |
Sales of ready-mix concrete (m m3) |
7.9 |
7.4 |
+6.0 |
+6.0 |
Net sales to external customers (CHFm) |
5,947 |
5,243 |
+13.4 |
+13.5 |
Recurring EBIT (CHFm) |
1,330 |
1,103 |
+20.5 |
+19.9 |
Recurring EBIT margin (%) |
22.4 |
21.0 |
|
|
Region
The
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
46.0 |
44.6 |
+3.3 |
+3.3 |
Sales of aggregates (mt) |
115.9 |
111.9 |
+3.5 |
+3.6 |
Sales of ready-mix concrete (m m3) |
20.0 |
18.1 |
+10.2 |
+7.6 |
Net sales to external customers (CHFm) |
8,032 |
7,061 |
+13.8 |
+9.2 |
Recurring EBIT (CHFm) |
1,114 |
927 |
+20.2 |
+17.7 |
Recurring EBIT margin (%) |
13.7 |
13.0 |
|
|
Region
The
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
27.3 |
23.9 |
+14.1 |
+14.1 |
Sales of aggregates (mt) |
6.4 |
4.8 |
+31.8 |
+31.8 |
Sales of ready-mix concrete (m m3) |
4.7 |
4.0 |
+19.8 |
+19.8 |
Net sales to external customers (CHFm) |
2,611 |
2,225 |
+17.4 |
+30.2 |
Recurring EBIT (CHFm) |
865 |
696 |
+24.3 |
+38.9 |
Recurring EBIT margin (%) |
32.7 |
31.0 |
|
|
Region Middle East Africa
A strong performance in the Middle East Africa region was driven by strong market growth in
Middle East Africa |
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
36.2 |
33.3 |
+8.7 |
+4.1 |
Sales of aggregates (mt) |
4.2 |
3.5 |
+21.9 |
+23.2 |
Sales of ready-mix concrete (m m3) |
3.5 |
2.7 |
+28.8 |
+8.5 |
Net sales to external customers (CHFm) |
2,430 |
2,349 |
+3.5 |
+14.0 |
Recurring EBIT (CHFm) |
388 |
330 |
+17.4 |
+37.9 |
Recurring EBIT margin (%) |
15.2 |
13.8 |
|
|
|
2021 |
2020 |
±% |
±%LFL |
Sales of cement (mt) |
20.6 |
19.8 |
+3.8 |
+3.8 |
Sales of aggregates (mt) |
108.8 |
108.0 |
+0.8 |
+0.1 |
Sales of ready-mix concrete (m m3) |
10.4 |
10.0 |
+3.6 |
+2.6 |
Net sales to external customers (CHFm) |
7,316 |
5,749 |
+27.3 |
+4.6 |
Recurring EBIT (CHFm) |
1,333 |
1,033 |
+29.1 |
+16.5 |
Recurring EBIT margin (%) |
18.1 |
18.0 |
|
|
Other Profit & Loss Items
Restructuring, litigation and other non-recurring costs stood at
Net financial expenses for 2021 showed double-digit improvement this year, at
The income tax rate excluding impairment and divestments was
Net income (Group share) increased by +
Net capital expenditure for 2021 was
Reconciliation to Group accounts
Reconciling measures of profit and loss to the Holcim Group’s consolidated statement of income:
In million CHF |
2021 |
2020 |
Net sales |
26,834 |
23,142 |
Recurring operating costs |
(20,747) |
(17,974) |
Share of profit of joint ventures |
474 |
448 |
Recurring EBITDA after leases |
6,562 |
5,616 |
Depreciation and amortization of property, plant and equipment, intangible and long-term assets |
(1,949) |
(1,940) |
Recurring EBIT |
4,612 |
3,676 |
Restructuring, litigation and other non-recurring costs |
(194) |
(89) |
Impairment of operating assets |
(17) |
(215) |
Operating profit |
4,401 |
3,371 |
In million CHF |
2021 |
2020 |
Recurring EBITDA after leases |
6,562 |
5,616 |
Depreciation of right-of-use assets |
370 |
360 |
Recurring EBITDA |
6,932 |
5,976 |
In million CHF |
2021 |
2020 |
Net income |
2,681 |
2,002 |
Impairment of goodwill and long-term assets* |
(14) |
(203) |
Loss on disposals of Group companies* |
(135) |
(14) |
Net income before impairment and divestments |
2,830 |
2,218 |
Net income before impairment and divestments, Non-controlling interests |
382 |
318 |
Net income before impairment and divestments, Group share |
2,448 |
1,900 |
EPS before impairment and divestments in CHF |
3.98 |
3.07 |
*Adjustments disclosed net of taxation. |
|
|
Reconciliation of Free Cash Flow after leases to the Holcim Group’s Consolidated Statement of Cash Flows
In million CHF |
2021 |
2020 |
Cash flow from operating activities |
5,045 |
4,618 |
Purchase of property, plant and equipment |
(1,532) |
(1,114) |
Disposal of property, plant and equipment |
112 |
88 |
Repayment of long-term lease liabilities |
(362) |
(342) |
Free Cash Flow after leases |
3,264 |
3,249 |
Reconciliation of Net financial debt to the Holcim Group’s consolidated statement of financial position:
In million CHF |
2021 |
2020 |
Current financial liabilities |
2,391 |
2,064 |
Long-term financial liabilities |
14,514 |
11,710 |
Cash and cash equivalents |
(6,682) |
(5,190) |
Short-term derivative assets |
(186) |
(30) |
Long-term derivative assets |
(59) |
(70) |
Net financial debt |
9,977 |
8,483 |
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.
Measures |
Definition |
Like-for-like |
Factors out changes in the scope of consolidation (such as divestments and acquisitions occurring in the current and the prior year) and currency translation effects (current year figures are converted with prior year exchange rates in order to calculate the currency effects). |
Recurring operating costs |
It is defined as: +/- Recurring EBITDA after leases - Net sales and - Share of profit of joint ventures. |
Recurring EBITDA |
It is defined as: +/– Operating profit/loss (EBIT) - Depreciation, amortization and impairment of operating assets and - Restructuring, litigation and other non-recurring costs. |
Recurring EBITDA after leases |
The Recurring EBITDA after leases is defined as Recurring EBITDA less the depreciation of right-of-use assets. |
Recurring EBIT |
The Recurring EBIT is defined as Operating profit/loss (EBIT) adjusted for restructuring, litigation and other non-recurring costs and for impairment of operating assets. |
Recurring EBIT Margin |
Recurring EBIT divided by net sales. |
Restructuring, litigation and other non-recurring costs |
Significant items that, because of their exceptional nature, cannot be viewed as inherent to the Group's ongoing performance, such as strategic restructuring, major items relating to antitrust fines and other business-related litigation cases. |
Profit/loss on disposals and other non-operating items |
Comprises capital gains or losses on the sale of Group companies and of material property, plant and equipment and other non-operating items that are not directly related to the Group's operating activities such as revaluation gains or losses on previously held equity interests, indemnification provisions, disputes with non-controlling interest and major lawsuits. |
Operating profit/loss (EBIT) before impairment |
It is defined as: +/- Operating profit/loss - Impairment of goodwill and long-term assets. |
Net income before impairment and divestments |
It is defined as: +/- Net income/loss - Gains and losses on disposals of Group companies and - Impairment of goodwill and long-term assets. |
EPS (Earnings Per Share) before impairment and divestments |
It is defined as:
Net income/loss before impairment and divestments attributable to the shareholders of |
“Capex” or “Capex Net” (Net Maintenance and Expansion Capex) |
It is defined as: + Expenditure to increase existing or create additional capacity to produce, distribute or provide services for existing products (expansion) or to diversify into new products or markets (diversification) + Expenditure to sustain the functional capacity of a particular component, assembly, equipment, production line or the whole plant, which may or may not generate a change of the resulting cash flow – Proceeds from sale of property, plant and equipment. |
Free Cash Flow after leases |
It is defined as: +/– Cash flow from operating activities – Net Maintenance and expansion Capex and – Repayment of long-term lease liabilities. |
Cash conversion |
Cash conversion is defined as: Free Cash Flow after leases divided by Recurring EBITDA after leases. |
Green Capex (million CHF)
|
The Sustainability Capital Expenditures with significant positive impact on Process Decarbonization, Clean Energy, |
Construction and Demolition Waste (CDW) Recycled (million tons) |
CDW Recycled volume is generated from construction, renovation, repair and demolition of houses, large building structures, roads, bridges, piers and dams. This includes alternative raw materials, recycled aggregates, asphalt and return concrete reused in Cement, Aggregates, Ready-mix concrete, Asphalt and Concrete Products. |
Net financial debt (“Net debt”) |
It is defined as: + Financial liabilities (short-term and long-term) including derivative liabilities – Cash and cash equivalents – Derivative assets (short-term and long-term). |
Debt leverage |
The Net financial debt to Recurring EBITDA ratio is used as an indicator of financial risk and shows how many years it would take the Group to pay back its debt. |
|
It is defined as: + Total shareholders’ equity + Net financial debt – Assets classified as held for sale + Liabilities classified as held for sale – Current financial receivables and – Long-term financial investments and other long-term assets |
Net Operating Profit/loss After Tax (“NOPAT”)* |
It is defined as: +/– Net Operating Profit/loss (being the Recurring EBIT and share of profits of associates) – Standard Taxes (being the taxes applying the Group's tax rate to the Net Operating Profit/loss as defined above) |
ROIC ( |
It is defined as:
Net Operating Profit/loss After Tax (NOPAT) divided by the average |
Ton |
Ton refers to a Metric ton, or 1,000 kg. |
Additional information
Analyst presentation and Integrated Annual Report
The analyst presentation of the results and the
The Full Year 2021 Results Media conference at
In order to participate in the media conference please register through this link: https://ccwebcast.eu/links/holcim220225_0900/indexl.html
In order to participate in the analysts and investors conference please register through this link: https://ccwebcast.eu/links/holcim220225_1100/indexl.html
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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).
__________________________
1 before impairment and divestments
2 after leases
3 Group share
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