Like-for-like net sales were up 3.1 per cent to CHF5.83bn, driven by growth in cement volumes, LafargeHolcim reported in its 1Q results release. In the quarter, the company sold 47.7Mt of cement, 49.8Mt of aggregates and 11.1Mm3 of ready-mix concrete. While cement sales were up 3.2 per cent on a like-for-like basis, aggregate and ready-mix concrete sales slipped by 1.4 and 1.1 per cent, respectively.
Recurring EBITDA was down 7.7 per cent on a like-for-like basis, affected by a harsh winter in North America and Europe.
The latest results continue the underlying market trends seen at the end of 2017. Top and bottom line growth in Latin America was maintained while in North America, the group is well positioned to take advantage of good market conditions despite the harsh winter, said the company in the statement. Challenging conditions in the Middle East and Africa region impacted performance in that part of the company’s global operations. Although underlying demand was good in Europe, the region was affected by adverse weather, fewer working days and higher maintenance activity.
Jan Jenish, Group CEO of LafargeHolcim, commented: "Q1 was a good start to the year. The continued growth in the top line is encouraging and confirms the positive outlook for our businesses. Though the quarter was affected by several headwinds, we expect the strength of our portfolio and the benefits of our new strategy to become increasingly visible over the full year. That makes us confident we will deliver on our 2018 targets."
The company expects a 3-5 per cent net sales growth in 2018 and aims to increase recurring EBITDA by at least five per cent on a like-for-like basis.
