Holcim has reported net sales of CHF5586m (US$6117m) in the opening quarter of 2024, down 2.4 per cent from the CHF5725m seen in the 1Q23. In local currency, sales were up 3.4 per cent YoY. Recurring EBIT in the 1Q24 came in at CHF532m, marking 7.8 per cent YoY growth, or 17.1 per cent growth in local currency. According to the company, the quarter saw a strong contribution from its Solutions & Products business with roofing sales advancing by 67 per cent YoY in local currency.
North America delivered margin expansion with a 3.9 per cent increase in local currency recurring EBIT, driven by strong underlying market demand. Net sales in the region came in at CHF1134m, down 5.8 per cent on the same period in the previous year. While the 1Q24 was impacted by fewer shipping days and adverse weather conditions, strong performance is expected to continue in 2024.
In Latin America Holcim achieved record 1Q net sales of CHF691m and recurring EBIT of CHF252m, along with a strong margin expansion to above 36 per cent. The nearshoring trend in Mexico accelerated during the quarter and the region has a strong pipeline of infrastructure projects ahead, says Holcim.
Europe delivered double-digit 1Q recurring EBIT growth, with an increase in the recurring EBIT margin of 1.5 percentage points – the sixth consecutive quarter of margin improvement. Net sales in Europe were down 5.5 per cent YoY to CHF1595m. Meanwhile, in Asia, Middle East and Africa, profitable growth in local currency continued with an expansion in recurring EBIT margin of 1.7 percentage points, although net sales saw a 14 per cent YoY decline to CHF874m. The region also recorded a significant increase in alternative fuels usage, advancing decarbonisation.
Solutions & Products posted strong results, with recurring EBIT more than doubling compared to the previous year and margin expansion of two percentage points. Net sales in the business advanced 18.8 per cent YoY to CHF1190m, mainly driven by roofing. In 1Q24 Holcim acquired ZinCo, a global leader in advanced green roofing systems based in Germany, and Tensolite, a leading manufacturer of innovative precast and pre-stressed concrete construction systems with a strong presence in fast-growing Latin American markets.
Holcim also made three acquisitions in aggregates, ready-mix and construction demolition materials, while closing the divestments of Russia, South Africa, Tanzania and Uganda.
The company is actively accelerating sales of its branded solutions with net sales of its low-carbon ECOPact concrete accounting for 26 per cent of ready-mix sales, and net sales of low-carbon ECOPlanet cement representing 26 per cent of cement sales in the 1Q24, up significantly from 16 per cent in each case in the prior year period.
In terms of climate action, Holcim reduced its CO2 per net sales by a further five per cent YoY and hosted the groundbreaking of its carbon capture and utilisation project in Germany.
