LafargeHolcim FY20 net sales dip to CHF23,142m

LafargeHolcim announced FY20 net sales of CHF23,142m (US$25,588m), down 5.6 per cent on a like-for-like basis (LfL) compared to the prior year and down 13.4 per cent on a reported basis. The LfL decline mainly results from the pandemic-related disruption, mostly in the 1H20, before returning to prior-year levels in the 2H20. 

Recurring EBIT reached CHF3676m, down 10.4 per cent in total and a decline of 1.9 per cent LfL for the full year, with a largely ‘V-shaped’ recovery across all regions delivering a 4Q20 improvement of 14.1 per cent LfL compared to the prior-year period.

Net income was CHF1900m, 7.5 per cent lower than in 2019 reflecting the recurring EBIT decline, partly offset by the reduction of restructuring, litigation and other non-recurring costs, along with the continuous improvement of the financial expenses and income tax rate.

Net debt amounted to CHF8.5bn at year-end 2020, a reduction of CHF1.6bn compared to the prior year. The ratio of net debt to recurring EBITDA now stands at 1.4, over-delivering on the 2022 target.

Jan Jenisch, LafargeHolcim CEO, said: "2020 was an unprecedented year for everyone, challenging us to be more resilient, while stepping up to take care of those around us. 

"This crisis has really proven the resilience of our strategy and business model. By the 4Q20 we were back to growth, with a 1.5 per cent increase in net sales and over-proportional recurring EBIT of 14.1 per cent. We are emerging stronger from the crisis, reaching a new level of financial performance this year. We delivered a record free cash flow of CHF3.2bn and reduced our net debt by CHF1.6bn. Staying focussed on our growth agenda, we completed eight bolt-ons in 2020 and signed an agreement to acquire Firestone Building Products, the leader in flat-roofing systems in the US.

"We are going into 2021 with strong momentum. We expect further demand in 2H21 from a broad range of stimulus programmes. We are firmly on track to become the global leader in innovative and sustainable building materials and solutions."

In addition, LafargeHolcim stated the company is ready to support these programmes around the world, from the CHF2trn 'Build Back Better' plan in the USA, to the nearly CHF2trn expected from India's 'National Infrastructure Pipeline' plan and the UK's CHF 800bn infrastructure plan.