LafargeHolcim - October 2019

LafargeHolcim has reported net sales of CHF7142m (US$7181m) for the third quarter of 2019, compared to CHF7362m in the same period a year earlier, marking a 4.9 per cent uptick on a life-for-like (LfL) basis. Recurring EBITDA over the same period stood at CHF1881m, up 6.4 per cent LfL from the CHF1867m reported in the 3Q18. 

“Q3 is the fifth consecutive quarter of over-proportional growth in profitability and we are on track to achieve all targets for 2019,” said Jan Jenisch, CEO, LafargeHolcim, commenting on the results. “We expect the positive dynamics to continue into the fourth quarter and we are confident that we will deliver a strong full-year performance and achieve a new level of balance sheet strength.”

According to the company, growth was achieved in all regions during the quarter and in all four business segments, supported by solid global market demand, especially in mature markets. Recurring EBITDA during the 3Q19 advanced in all business segments and in four out of five regions. In North America and Europe recurring EBITDA improved by 6.9 and 7.1 per cent, respectively, driven by volumes and positive price momentum.

The regional performance saw the European market report good demand with further margin improvement driven by positive price momentum and operational efficiency. North America achieved strong results with good volume growth, although there was a softer market environment in Canada. The Latin America market was led by Colombia and Brazil, with a softer performance in Mexico and Ecuador. There was strong margin improvement in the Asia Pacific region, particularly in India, Australia and China. The Middle East saw challenging conditions persisting in Algeria and Egypt but performance improvements in South Africa, Iraq and Jordan.

For full-year 2019 net sales growth of 3-5 per cent on a LfL basis is expected. Pre-IFRS 16 recurring EBITDA is forecast to expand by at least five per cent on a LfL basis.