Holcim reports 8% organic growth in 1Q23
Holcim has reported organic sales growth of eight per cent to CHF5725m (US$6401m) in the first quarter of 2023. Over the same period, recurring EBIT came in at CHF493m, marking 12 per cent organic growth.
“This profitable growth was led by strong performances across our building materials businesses. Our teams continued our fast-paced execution, with 12 value-accretive acquisitions, including Duro-Last, completing our range of flat roofing systems. With strong underlying trends across all our businesses, we are confident we will close the full year strong,” said Jan Jenisch, CEO, Holcim. The group has now upgraded its guidance for 2023 with projections of organic net sales growth in excess of six per cent and organic recurring EBIT growth of over 10 per cent.
The North America region delivered a strong start to the year in cement, aggregates and ready-mix concrete, with strong market demand in both the USA and Canada. Roofing volumes were impacted by inventory normalisation. Holcim’s roofing offer was further strengthened in the quarter with the closing of Duro-Last, alongside two other acquisitions in aggregates. Order books are strong in all business segments.
The first quarter of 2023 in Latin America was the region’s eleventh consecutive quarter of profitable organic growth, with performance driven by Mexico, Colombia and Argentina. The company expanded the Solutions & Products business in roofing and waterproofing in Argentina and in Mexico. Holcim expects these strong results to continue with an excellent pipeline of infrastructure projects ahead.
In Europe, Holcim delivered strong results across the region, with margin expansion driven by high-value solutions. Holcim closed two acquisitions in Solutions & Products and five in Aggregates and Ready-Mix. The company expects strong results to continue.
The Asia Middle East & Africa region showed profitable organic growth with significant margin expansion. Performance was driven by Australia, Algeria and Egypt. Decarbonising its operations, the region delivered a significant increase in alternative fuels. Order books for the region are good and the recovery in China is progressing.
Holcim has also upgraded its climate action targets, as set out in its second Climate Report. Holcim reduced its CO2 per net sales by 21 per cent in 2022 and intends to reduce it by over 10 per cent in 2023. Holcim has also committed to invest a cumulative CHF2bn by 2030 in mature technologies to capture more than 5Mt of CO2 per year. Driving circular construction across its business, Holcim launched its proprietary ECOCycle® circular technology platform in April to accelerate recycling of construction and demolition materials. The company is on track to exceed its target to recycle 10Mt of construction and demolition materials by 2025.
Continuing its focus on sustainable construction, ECOPact low-carbon concrete represented 16 per cent of ready-mix net sales in the first quarter of 2023, continuing to make progress towards its objective of reaching 25 per cent by 2025. ECOPlanet low-carbon cement is now available in 27 markets, with the first calcined clay production in France and Mexico with up to 50 per cent less CO2.
