LafargeHolcim records net sales of CHF10.7bn in 1H20

LafargeHolcim recorded net sales of CHF10.693bn (US$11.7m), a decline of18.1 per cent compared to the prior year of CHF13.059bn, reflecting the severe impact of the implementation of strict lockdowns of construction sites in several major operating countries. The strong appreciation of the Swiss franc against all currencies accounted for 6.2 per cent of the absolute decrease. Following the easing of the lockdowns, net sales in all five regions resumed prior-year levels by the end of June.

Recurring EBIT reached CHF1.194bn, a decrease of 22 per cent LfL for the half year. Swift implementation of the 'HEALTH, COST & CASH' action plan helped to offset the earnings impact of the crisis. Net debt amounted to CHF10.7bn as at 30 June 2020, down by 15.8 per cent compared to CHF12.7bn as at 30 June 2019. Free cash flow reached a record CHF749m in the six-month period, up 198 per cent compared to CHF252m in the 1H19.

Jan Jenisch, CEO, said: "I'm very proud of our teams' rapid and agile response to the crisis since the beginning of January. We were quick to respond and take all necessary measures to protect the health of our people while supporting our communities, from donating materials to build emergency field hospitals all the way to supplying essential goods, touching the lives of over four million people around the world.
 
"Our half-year results demonstrate the great resilience of our business. I’m encouraged by our team's agility to weather the storm with the rapid execution of our 'HEALTH, COST & CASH' action plan, effectively driving cost savings ahead of expectations, improving net working capital and delivering record free cash flow.
 
"The peak of the crisis is behind us. We expect a solid second half of the year based on June's full recovery, the trend of our order book and upcoming government stimulus packages."