LafargeHolcim 4Q20 regional results see net sales of CHF5994m

Group net sales for the 4Q20 totalled CHF5994m (US$6628m), down 8.1 per cent from CHF6521m in the 4Q19. In the 4Q20 LafargeHolcim recorded cement sales of 51.2Mt, slipping 0.5 per cent from 51.5Mt in the 4Q19. Aggregate sales decreased to 65.8Mt in the 4Q20, down 2.5 per cent from 67.5Mt in the 4Q19. Ready-mix sales reached 11.3Mm³ in the 4Q20, a decline of 2.4 per cent from 11.6Mm³ in the 4Q19.  The company also reported on its results for the full-year 2020, which saw a 5.6 per cent decline in net sales.

The Asia-Pacific region returned net cement sales to external customers of CHF1489m in the 4Q20, down 7.7 per cent from CHF1613m in the 4Q19. Recurring EBIT totalled CHF349m in the 4Q20, a drop of 2.4 per cent from CHF358m in the 4Q19.

In Europe growth returned by the 4Q20, with volumes approaching 2019 levels. Pricing trends were strong overall though demand recovery was mixed, with western European countries rebounding most strongly, central Europe largely resilient and a comparatively softer performance from eastern European markets. The UK was more heavily impacted by strict lockdown measures as well as Brexit. Net sales to external customers totalled CHF1796m, down from CHF1834m in the 4Q19. Recurring EBIT totalled CHF242m, up 8.6 per cent from CHF223m in the 4Q19.

Latin America delivered an outstanding 2020 performance. Q4 volumes in all business segments were significantly ahead of last year, with cement demand growth in major markets for the year. Growth was driven by strong branded products sales in retail and distribution channels, resulting in another quarter of outstanding recurring EBIT margin improvement. The group’s 4Q20 net sales to external customers reached CHF622m, down 3.9 per cent from CHF647m in the 4Q19. Recurring EBIT grew to CHF204m, an increase of 17.7 per cent from CHF173m in the 4Q19.

In the Middle East and Africa, resilient cement volumes were supported by strongly-branded products sales and good growth in Nigeria. The group’s 4Q20 net sales of cement to external customers in the region totalled CHF569m, a decline of 20.2 per cent from CHF714m in the 4Q19. Recurring EBIT totalled CHF88m in the 4Q20, down 9.3 per cent from CHF96m in the 4Q19.

North America showed strong improvement in its recurring EBIT margin. Volumes recovered across all business segments in the 4Q in the region, supported by excellent execution of the 'Health, Cost & Cash' action plan and effective price management. This strong performance was partially offset by a slowdown in Canada West, which was affected by the decline in the oil and gas industry. Net cement sales to external customers totalled CHF1392m, down 10.6 per cent from CHF1557m in the 4Q19.