LafargeHolcim 3Q18 sales grow by 5.8%
LafargeHolcim reports that its 3Q18 results saw like-for-like net sales grow by 5.8 per cent and by 5.1 per cent in the first nine months of 2018 compared to the prior-year period. Growth was driven by increased demand as well as sales price increases.
Recurring EBITDA grew over-proportionally by a very strong 8.1 percent in 3Q18 compared to 3Q17. Steep cost inflation in energy and logistics was more than offset by the company’s volume growth as well as the effectiveness of its pricing and efficiency programmes, said the company.
The North America region delivered a robust contribution supported by favourable market conditions and successful commercial initiatives. Results from the Latin America region were lower in 3Q18 compared to the very strong performance in the prior-year period, impacted by weakening demand in several countries. Europe delivered positive results overall, with continued good momentum from most key markets. The Middle East and Africa showed signs of stabilisation in key markets. The Asia-Pacific region had another strong quarter, supported by contributions from China and India as well as improved performance in southeast Asia.
Jan Jenisch, LafargeHolcim CEO, said: "In 3Q we were able to increase our positive momentum and to continue delivering on our Strategy 2022 – 'Building for Growth'. Despite headwinds from steep cost inflation, we delivered stronger net sales and our earnings grew even faster. I am very satisfied with our growth in volumes, our solid pricing and the impact of our cost and efficiency programmes. We are executing at full speed on our Strategy 2022 – 'Building for Growth'.”
This positive momentum is expected to continue in 4Q18 with the following underlying market trends:
• Continued growth in North America
• Softer cement demand in Latin America
• Strong markets in Europe
• Challenging but stabilising conditions in Middle East/Africa
• Continued demand growth in Asia.
Based on the above trends and positive momentum, the net sales guidance for 2018 is adjusted upwards to 4-6 per cent on a like-for-like basis (compared to 3-5 per cent as previously guided). Recurring EBITDA growth guidance for 2018 is adjusted to 3-5 per cent on a like-for-like basis.
