LafargeHolcim's FY19 net sales total CHF26.7bn
LafargeHolcim's reported that its FY19 net sales reached CHF26.72bn (US$27.49bn), up 3.1 per cent on a like-for-like basis compared to the prior year, driven by good growth in Europe and North America, good price dynamics across all business segments and higher prices in most markets.
Recurring EBITDA amounted to CHF6,153m, up 6.5 per cent like-for-like for the full year, driven by good pricing, improvement in efficiencies and the company's Strategy 2022 'Building for Growth'. Record Net income of CHF2072m increased by 32 per cent compared to 2018 (CHF1569m), driven by less restructuring costs, lower financial expenses as well as a decrease in the tax rate. Net debt was substantially reduced by CHF4.7bn (-35 per cent) to CHF8.8bn at year-end 2019.
Sales of cement fell to 207.9Mt compared to 221.9Mt in 2018, a drop of -6.3 per cent. Aggregate sales were also down to 269Mt in 2019 from 273.8Mt in 2018, a decline of -1.4 per cent. Ready-mix sales fell to 47.4Mm3 in 2019 from 50.9Mm3 in 2018, down -6.3 per cent. Net sales of Solutions and Products totalled CHF2248m in 2019, down from CHF2396m in 2018, a drop of -6.2 per cent.
Regional results
Asia-Pacific
Cement sales in Asia-Pacific were down 18.1 per cent to 73.5Mt from 89.7Mt in 2018. Aggregate sales were also down in 2019 at 27.3Mt from 31.4Mt in 2018, a dip of 13 per cent. Ready-mix cement sales reached 9.6Mm3 in 2019 down from 12.5Mm3 in 2018.
Europe
European cement sales rose to 46.3Mt in 2019 up from 45.3Mt in the previous year, a rise of 2.3 per cent. Aggregates sales fell to 118.7Mt in 2019, down from 120.4Mt in 2018, a drop of -1.4 per cent. Sales of ready-mix remained unchanged at 19.3Mm3 in 2019, compared to 2018.
Latin America
Cement sales in Latin America for the group reached 24.7Mt, down -1.5 per cent on 25.1Mt in 2018. Sales of aggregates in 2019 totalled 4.1Mt, a rise of 14.6 per cent on the 3.6Mt reached in 2018. Sales of ready-mix concrete reached 4.9Mm3, down 10.7 per cent on the 5.5Mm3 achieved in 2018.
Middle East & Africa
Cement sales in the Middle East for the group totalled 35.6Mt in 2019 marginally up by -0.8 per cent on the 35.9Mt sold in 2018. Sales of aggregates slipped to 6.3Mt in 2019, down -28.1 per cent on the 8.7Mt sold in 2018. Ready-mix concrete sales totalled 3.8Mm3, down -10.1 per cent on the 8.7Mm3 achieved in 2018.
North America
North American cement sales increased to 20.8Mt in 2019, up 5.3 per cent on the 19.8Mt sold in 2018. Sales of aggregates also rose to 113.5Mt , up from 109Mt in 2018, a rise of three per cent. Sales of ready-mix concrete rose to 10.2Mm3 in 2019, up from 9.4Mm3 in 2018, a rise of 7.6 per cent.
Outlook
For 2020, LafargeHolcim anticipates a continued solid market environment with growth in North America, continued growth across most European countries and improving market conditions in Latin America. The company expects challenging markets in the Middle East, China and Africa with demand growing in India. The company has targeted net sales growth of 3-5 per cent on a like-for-like basis in 2020 and recurring EBITDA growth of at least seven per cent with net debt recurring EBITDA below two times by the end of 2022.
