Holcim: record start to the year

• Record Net Sales of CHF 6,440m, total growth of +20.1% in Swiss francs, driven by strong demand, acquisitions and pricing
• Record Recurring EBIT of CHF 614m, total growth of +16.3% in Swiss francs
• Strong contribution from Roofing business with 17% Recurring EBIT margin
• Successful closing of Malarkey acquisition and 4 bolt-on acquisitions
• Upgrade by Standard & Poor’s to BBB+
• Launch of industry-first Climate Report
• Outlook 2022 upgraded, Net Sales growth of at least 8% LFL and at least 10% in Swiss francs

Outlook

Despite volatile market conditions and geopolitical uncertainty, Holcim expects growth momentum to continue in all regions. The record start to the year and the positive demand outlook globally gives Holcim the confidence to upgrade its guidance with:

• Growth in Net Sales of at least 8% LFL and 10% in Swiss francs
• Double-digit Net Sales growth in Solutions & Products to achieve Net Sales of CHF 5 billion
• Accelerated progress towards 2025 sustainability targets
• Positive growth in Recurring EBIT LFL and in Swiss francs
• Free Cash Flow above CHF 3 billion

Cement volumes reached 46.1Mt in the 1Q22, down 2.6 per cent,  sales of aggregates reached 51.5Mt, up 6.1 per cent, ready-mix volumes increased to 10.9Mm³, a rise of 8.1 per cent.

European cement sales totalled 9.1Mt, a rise of 0.3 per cent on the 1Q21 results. Aggregate sales in Europe totalled 26.6Mt, up nine per cent. Ready-mix volumes grew to 4.8Mm³, a rise of 6.9 per cent. 

Asia-Pacific saw cement volumes reach 18Mt, down from 18.9Mt in the 1Q21, a fall of 4.7 per cent. Aggregate volumes in the region also slipped to 7.5Mt from 7.6Mt in the 1Q21, while ready-mix volumes fell to 1.9Mm³ from 2Mm³ in the same period a year ago.

Latin American sales saw cement volumes decline to 6.4Mt from 6.5Mt in the 1Q21, while aggregates grew to 1.8Mt from 1.4Mt in the 1Q21, a rise of 29.8 per cent. Ready-mix sales also increased to 1.3Mm³ from 1.1Mm³ in the same period a year ago. 

Middle East cement volumes rose to 8.9Mt in the 1Q22 from 8.6Mt in the 1Q21, up 1.6 per cent. Aggregate volumes grew to 1Mt from 0.9Mt in the 1Q21, an increase of 14.2 per cent. Ready-mix volumes also grew to 0.9Mm³ in the 1Q22, up 45.8 per cent from the 0.6Mm³ recorded in the 1Q21.

North American cement sales totalled 3.9Mt in the 1Q22, up 13.6 per cent from the 3.4Mt recorded in the 1Q21. Aggregate sales rose to 14.6Mt from 14.3Mt recorded in the 1Q21, a rise of two per cent. Ready-mix deliveries reached 2Mm³, up 4.9 per cent from the 1.9Mm³ achieved in the 1Q21.

Recurring EBITDA totalled CHF1164m up from CHF1077m in the 1Q21. Recurring EBIT totalled CHF614m up from CHF528m in the 1Q21. Operating profit grew to CHF574m from CHF484m in the 1Q21.