Holcim records net sales of CH6834m in 2021

Holcim recorded net sales of CH6834m (US$7367m) for 2021 were up 11.3 per cent on a like-for-like (LfL) basis and 16 per cent higher in Swiss francs, compared to the prior year. The record growth in net sales was driven by volume growth in all regions and business segments and strong pricing.

Cement sales in 2021 totalled 200.8Mt, up from 190.4 per cent in 2020, a rise of five per cent LfL. Aggregate sales reached 269.9Mt up from 256.3Mt in 2021, or 3.9 per cent higher LfL. Ready-mix sales grew from 43.3Mm³ in 2020 to 46.5Mm³ in 2021. 

Recurring EBIT reached a record CHF4612m for 2021, up 25.7 per cent on a LfL basis and 25.5 per cent higher in Swiss francs, compared to 2020. Recurring EBIT has grown over-proportionally in all regions and business segments.

Net debt amounted to CHF9977m. Return on invested capital was 8.9 per cent in 2021, over-achieving Holcim’s Strategy 2022 target of above eight per cent.

Jan Jenisch, Holcim CEO, said: "We delivered record financial performance across all our key metrics with net sales of CHF26.8bn and over-proportional Recurring EBIT growth of 25.7 per cent LFL, reaching CHF4.6bn, and a debt leverage ratio of 1.4x."

The company's regional results in 2021 saw growing returns in all regions for cement, aggregates and ready-mix sales.

Asia Pacific
The Asia Pacific region delivered an excellent performance in 2021, with strong results in India and the successful expansion of the aggregates business in China. In India new production lines opened in Marwar Mundwa and Ametha. Cement sales totalled 69.7Mt, up from 63Mt in 2020. Aggregate sales rose to 34.6Mt, up from 28.1Mt in 2021. Ready-mix sales rose from 28.1Mm³ in 2020 to 34.6Mm³ in 2021.

Europe
The Europe region delivered higher profitability, with good demand overall in western Europe and strong growth in eastern Europe. Cement sales grew to 46Mt from 44.6Mt in 2020. Aggregate sales rose to 115.9Mt from 111.9Mt in 2020. Ready-mix sales grew to 20Mm³ up from 18.1Mm³ in 2020.

Latin America
The Latin America region achieved strong profitable growth on the back of good market demand driven by residential and infrastructure in all key markets. Cement sales increased to 27.3Mt from 23.9Mt in 2020. Sales in aggregates rose to 6.4Mt from 4.8Mt in 2020 and ready-mix sales rose to 4.7Mm³ from 4Mm³ in 2020. 

Middle East Africa
A strong performance in the Middle East Africa region was driven by strong market growth in Nigeria and Kenya. Sales of cement totalled 36.2Mt up from 33.3Mt in 2020. Sales of aggregates increased to 4.2Mt, up from 3.5Mt in 2020. Ready-mix sales grew to 3.5Mm³, up from 2.7Mm³ in 2020.

North America
North America achieved good market growth in the region supported volume growth across all business segments. Cement sales grew to 20.6Mt up from 19.8Mt. Sales of aggregates reached 108.8Mt, marginally, up from 108Mt in 2020 and ready-mix sales grew to 10.4Mm³, up from 10Mm³ in 2020.

Outlook and guidance 2022
Holcim expects growth momentum to continue in all regions with double-digit net sales growth in solutions and products, accelerated progress towards 2025 sustainability targets, growth in net sales of above six per cent LfL, positive growth in recurring EBIT LfL and free cash flow above CH3bn.