Holcim reports record profitability growth in H1

Miljan Gutovic, CEO: “I thank all members of the Holcim family for achieving record profitability in the first half of 2024. With our deeply rooted culture of performance, our teams are focused on efficiently meeting the needs of our customers. Our leading sustainable building solutions, from ECOPact low-emission concrete to Elevate energy-efficient roofing systems, position us as the first choice partner for large-scale projects such as infrastructure and data centers.

“We delivered broad-based, profitable growth in the first half of the year, delivering an enhanced earnings profile with a record recurring EBIT margin of 23.2% in the second quarter and are on track to achieve free cash flow in excess of CHF 3 billion in 2024. With our track record of creating superior value across all market conditions and economic cycles, we are committed to delivering another year of record performance, leveraging the strong fundamentals of our markets.

“We continued our disciplined M&A execution, completing 11 high-value acquisitions to accelerate circular construction and scale our ECOCycle^® technology, while expanding Solutions & Products and strengthening our aggregates and ready-mix concrete. By supporting climate action, we have reduced CO₂ on net sales by 7%”.

Profitable growth continues

Net sales of CHF 12,813 million in the first half of 2024 increased by 1.6% in local currency compared to the previous year.

Recurring EBIT for H1 2024 increased more than proportionally to net sales to a record CHF 2,210 million, up 12.7% in local currency compared to the prior-year period. Profitability improved sharply in Q2 2024 with a record recurring EBIT margin of 23.2%, reflecting Holcim’s strategic focus on high-value solutions. As a result, Holcim is well on track to once again deliver industry-leading margins for the full year.

Holcim’s earnings per share before impairment charges and asset sales in the first half of 2024 amounted to CHF 2.44, 10% higher than in the same period of the previous year.

Free cash flow after leasing was CHF 48 million in H1 2024, compared to CHF 79 million in H1 2023, in line with the full-year 2024 guidance of more than CHF 3 billion.

Investing in the most attractive markets

Holcim continues to invest in profitable growth with 11 value-adding acquisitions, mostly of family-owned businesses, that deliver significant synergy benefits.

Europe has seen four highly profitable acquisitions that accelerate the development of circular construction – in Belgium, Switzerland, the UK and Germany – scaling up Holcim’s ECOCycle programme^® recycling technology; three acquisitions in Europe and Latin America to expand Solutions & Products; and bolt-on acquisitions in North America, Latin America and Europe to strengthen aggregates and ready-mix concrete. Holcim also closed four divestitures in H1.

A leader in sustainable development

Customer demand for Holcim’s sustainable building solutions has increased. In the first half of the year, net sales of Holcim’s ECOPact low-emission concrete and ECOPlanet low-emission cement accounted for 28% and 26% of net sales of ready-mix and net sales of cement, respectively, up significantly from 19% in each case at the end of December 2023.

By supporting climate action, Holcim has reduced its CO emissions₂ on net sales by 7% compared to the prior-year period. In Q2, Holcim started two major Carbon Capture, Utilization and Storage (CCUS) projects with partners in Germany and Belgium.

Perspectives and tips

Holcim’s strategy continues to deliver excellent results. Building on the record EBIT margin in Q2, Holcim updates its full-year guidance for 2024 with:

• Low single-digit net sales growth in local currency.
• Above-proportionate growth in recurring operating profit before interest, tax, depreciation and amortization and operating profit.
• Increase in recurring EBIT margin to over 18.5%.
• Free cash flow exceeding CHF 3 billion.
• 20% increase in recycled construction and demolition materials to 10 million tonnes.
• Progress Toward U.S. Stock Exchange Listing of North American Companies.

The planned listing of Holcim’s North American business on the US stock exchange is expected to be completed in the first half of 2025. The aim is to usher in a new era of value creation for all stakeholders.

Holcim commenced its previously announced share buyback on 18 March 2024 to purchase up to CHF 1 billion by year-end. By 30 June 2024, 5.2 million shares had been repurchased for CHF 413 million. Holcim remains committed to maintaining a strong investment grade credit rating.

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