LafargeHolcim report continued earnings growth in Q2
Company delivers fifth consecutive quarter of operating EBITDA adjusted growth
THE second quarter (Q2) of 2017 saw LafargeHolcim deliver their fifth consecutive quarter of earnings growth with operating EBITDA adjusted for merger, restructuring and other one-offs up 10.1% to CHF1,735 million on a like-for-like basis, driven by pricing, cost discipline and synergies. Net sales for the quarter were up 3.6%, like for like, to CHF7,280 million.
The Group’s Middle East Africa, Latin America and North America regions were all said to have contributed to earnings momentum with the US, Nigeria and Mexico among the notable performers.
Earnings in Europe were marginally down for the quarter, although the underlying trends in the region are still positive.
However, despite positive results in India, LafargeHolcim said the Asia Pacific region was weighed down by persistent challenging market conditions in Indonesia, Malaysia and the Philippines.
Synergies of CHF121 million were achieved in Q2, and by the end of the quarter the Group was close to delivering CHF1 billion of total synergies, well ahead of its accelerated target of year-end 2017.
Net debt was CHF15.7 billion at the end of Q2, down approximately CHF2.4 billion compared with the same period last year, largely due to divestments.
Commenting on the Q2 results, Beat Hess (pictured), chairman and interim chief executive officer, said: ‘LafargeHolcim delivered positive earnings growth for the fifth consecutive quarter supported by favourable pricing, cost discipline and synergies.
‘The unique strengths of our balanced portfolio are once again evident in our results with key countries such as the US, India, Nigeria and, notably this quarter, Mexico making significant contributions to earnings, more than offsetting headwinds in some of our markets.
‘On that basis, and with our performance to date, we remain confident that we will achieve our full-year guidance and our 2018 targets. In addition, our continued efforts to transform our commercial capability and improve our cost base put us in a strong position to fully capitalize on market growth.’
Meanwhile, Jan Jenisch, whose appointment as Group CEO of LafargeHolcim was reported by Agg-Net in May, will now take over the role on 1 September 2017, slightly earlier than previously announced.
