LafargeHolcim presented a full overview of its 'Strategy 2022 – Building for Growth' programme at its Capital Markets Day held at the Belfry Hotel and Resort, Birmingham, UK, yesterday.
Jan Jenisch, LafargeHolcim CEO, said, "Our performance in 2018 shows that execution of 'Strategy 2022 – Building for Growth' is at full speed. We have simplified the organisation and are ahead of target with our SG&A savings programme. With the recent divestment of our Indonesia operations we reached a major milestone in focussing our portfolio which allowed us to accelerate deleveraging. At the same time we aggressively move forward in aggregates and ready-mix concrete. These results are strong proof points for our Strategy 2022 and we will continue delivering across all value drivers."
LafargeHolcim reported that its net sales growth of 4-6 per cent on a like-for-like basis was forecast for the 2018 full year. Recurring EBITDA growth of 3-5 per cent on a like-for-like basis could also be expected.
In 2019 the solid global market demand is expected to continue. Full-year targets for 2019 included
net sales growth of 3-5 per cent on a like-for-like basis. Recurring EBITDA growth would have a minimum target in 2019 of five per cent growth on a like-for-like basis.
The company also highlighted that it would accelerate deleveraging to achieve two times or less net-debt-to-recurring-EBITDA ratio by the end of 2019.
LafargeHolcim outlined its 'Strategy 2022 – Building for Growth' in break-out sessions, including:
• Shifting gears through growth
• Close the gap to best-in-class performance
• Simplification and performance
• Financial strength
• Vision and people
• The future today – digital transformation.
Capital Market Day attendees also had the opportunity to visit Europe's largest aggregates quarry at Bardon Hill, near Coalville, Leicestershire. LafargeHolcim subsidiary Aggregate Industries is currently extending the granite quarry as part of a GBP26m investment to add 30 more years to the quarry's life time. The Aggregate Industries' quarry produces aggregate for asphalt, concrete and the Broadstone range of paving stones, roof tiles and concrete blocks.
