Holcim reports on record results in 1H22

Holcim has reported record sales on CHF14,681m (US$15,273m) in the first half of 2022, marking a 16.9 per cent increase YoY, driven by sales growth in all segments. Net sales in the second quarter alone were up 13.6 per cent YoY to CHF8240m. Record recurring EBIT was also seen in the 1H22, coming in at CHF2173m, up 9,6 per cent YoY. This was attributed to a robust improvement in profitability in the company's Solutions & Products segment and strong recurring EBIT margin expansion in North America. Operating profit in the 1H22 advanced 15.2 per cent YoY to CHF2067m, while earnings per share improved by 39.7 per cent YoY to CHF1.90. In the 1H22 cement sales came in at 95.3Mt, down from 99Mt in the same period a year earlier. Sales of aggregates slipped 0.3 per cent YoY to 122.7Mt, while sales of ready-mixed concrete (RMC) saw a 7.2 per cent improvement to 23.7Mm³.

Asia-Pacific
In the Asia-Pacific region, a recovery in demand in India and strong orderbook in Australia helped to partially offset cost inflation and negative price over cost. Cement demand was softer in China and the Philippines compared to the 1H21, but this was somewhat offset by expansion of the aggregates and RMC businesses in China. Cement sales in the region slipped 1.3 per cent YoY to 35.3Mt, sales of aggregates declined 4.7 per cent to 16.1Mt, while sales of RMC advanced 2.8 per cent to 4Mm³.  

Europe
In Europe growth was boosted by bolt-on acquisitions along with an expansion of the Solutions & Products business. Strong price momentum was seen, helping to offset inflation, while an accelerated execution of green capex drove an increase in the use of alternative fuels. Cement sales for the region contracted by 9.5 per cent YoY to 20.1Mt, while sales of aggregates improved by 0.7 per cent YoY to 56.5Mt and sales and RMC saw a 2.2 per cent improvement to 10.1Mm³. 

Latin America
Robust pricing, good market demand, especially in Argentina and Colombia, increased use of alternative fuels, and expansion of the aggregates business in Colombia, Ecuador and El Salvador, led to strong profitable growth in the 1H22. Although cement sales dipped by 0.2 per cent YoY to 13.3Mt, sales of aggregates saw a 32.2 per cent YoY advance to 3.8Mt, while RMC sales improved by 20.3 per cent to 2.7Mm³. 

Middle East Africa
Solid market demand in Nigeria and Iraq was partially offset by softer demand in Egypt. Strong growth in aggregates saw a 9.8 per cent advance in sales to 2.2Mt, while RMC sales advanced by 22.1 per cent YoY to 1.8Mm³. Cement sales, meanwhile, contracted by 3.1 per cent YoY to 17.3Mt. 

North America
The North American market saw cement sales increase by 9.6 per cent YoY to 10Mt. Sales of aggregates declined by 2.3 per cent to 44.1Mt, while sales of RMC improved by 10.3 per cent YoY to 5.1Mm³. According to the company, market demand was excellent, supported by a significant contribution from the roofing business. Price momentum was also strong with a full orderbook and robust demand in all end-markets.