Holcim report record first-half results
Volume growth in all business segments sees new records set in recurring EBIT and free cash flow
HOLCIM have reported record half-year results for the six months ended 30 June 2021, with net sales up 16.6% on a like-for-like basis at CHF12,556 million, compared with the previous year (CHF10,693 million), largely driven by volume growth in all regions and segments.
Recurring EBIT reached a record CHF1,983 million for the first half of 2021, up 72.2% on a like-for-like basis (CHF1,194 million), driven by significant margin improvement in all business segments.
Meanwhile, free cash flow after leases was up 8.6% at CHF814 million in the first half of 2021 (CHF749 million), as measures taken to protect the business during the global pandemic continued to deliver efficiencies.
In the first six months of 2021, sales of cement were up 13.2%, like-for-like, at 99 million tonnes, compared with the previous year (87.2 million tonnes), whilst sales of aggregates were up 6.2% at 123 million tonnes (113.8 million tonnes), and ready-mixed concrete was up 13.9% at 22.1 million cubic metres (19.2 million cubic metres).
Chief executive officer Jan Jenisch said: ‘At this time last year I said that Holcim would emerge stronger from this crisis. These half-year results prove it.
‘In the first half of 2021 we set new records in recurring EBIT, free cash flow and earnings per share. I congratulate our teams for this remarkable achievement and for giving me the confidence to revise our 2021 guidance for recurring EBIT growth to at least 18% like for like.’
Looking ahead, Holcim say they expect the growth momentum to continue in all regions, supported by various stimulus programmes.