LafargeHolcim's revenue grew 6.2 per cent in the 2Q18, with total net sales of CHF7442m (US$7468m). For the first six months net sales grew 4.8 per cent on a like-for-like basis.
Over the first six months, recurring EBITDA was down -1.4 per cent on a like-for-like basis but earnings increased in the second quarter, with recurring EBITDA up by 1.5 per cent, largely offsetting a soft first quarter.
Jan Jenisch, CEO of LafargeHolcim, said: "I am very satisfied with the sales growth we achieved in the first half of the year, especially as we gained momentum in the second quarter. Increasing energy prices and cost inflation have been challenging. Operational issues in some markets have been addressed and we expect to deliver increasing margins as we capture the upward trend in demand through the second half of 2018.
"We remain focussed on delivering Strategy 2022 – ‘Building for Growth'. Recent bolt-on acquisitions in the US and France demonstrate our focus on capturing the growth opportunities in our most attractive markets. The beneficial effects of simplification and cost reduction are also becoming more visible. We continue to focus on delivering our 2018 targets."
Outlook 2018 and regional updates
The group confirms its targets for 2018 for net sales growth of three to five per cent and an over-proportional increase in recurring EBITDA of at least five per cent on a like-for-like basis.
Asia-Pacific
Strong net sales and earnings growth have been achieved despite mixed market conditions. China was a key driver in the first half, with a continued rise in profits supported by pricing momentum and sustained benefit from the vertically-integrated waste recycling business. India delivered growth in net sales and profits driven by solid volumes, supported by sustained market demand and higher sales of premium products. Conditions in southeast Asia remained challenging, although encouraging trends were observed in the Philippines and Indonesia. Revenue grew particularly in the second quarter.
Europe
Top line and profit grew throughout the 1H18. Strong market trends in most European countries led to improving volumes in all segments compared to the first half of 2017 on a like-for-like basis, with strong momentum in the second quarter. Net sales growth accelerated in Germany and France, although production constraints temporarily affected earnings growth. Volumes in the UK were broadly stable, but profits were lower on the back of higher costs. Eastern and central Europe also showed strong performance.
Latin America
Strong growth in top line and earnings have been achieved, supported by solid performance in Mexico. Performance in Argentina was also good despite higher costs to fulfil demand and currency volatility. Performance in Brazil was impacted by the national transport strike in May.
Middle East & Africa
Conditions in several countries of Middle East and Africa remained challenging, notably Algeria and Iraq. Egypt's performance was solid in the face of an increasingly volatile environment. Top line trends in Nigeria continued to improve, driven by higher market demand and commercial initiatives. Results in South Africa were impacted by current operational issues.
North America
Earnings improved with volumes in the US, accelerating throughout the first half of 2018 supported by positive market conditions as well as successful commercial initiatives. The contribution from Canada was solid despite persistent difficult conditions in the Prairies. Earnings for the region overall were constrained by higher logistics costs and maintenance activities to cope with demand growth.
