LafargeHolcim maintain momentum in Q3
Company reports continued growth momentum and over-proportional increase in profitability in third quarter
LafargeHolcim have reported a 4.9% increase in net sales to CHF7,142 million during the third quarter (Q3) of 2019, compared with the same period last year. Recurring EBITDA was up 6.4% in the quarter to CHF1,881 million.
According to the company, growth was achieved in all regions and in all four business segments, supported by solid global market demand, especially in mature markets.
The Europe region had another very strong quarter, with good market demand across the region. Further margin improvement was driven by positive price momentum and operational efficiency. The UK market was resilient despite signs of weaker market demand due to current political uncertainty.
North America achieved strong results, with good volume growth in all business segments. Positive price momentum and easing cost inflation further supported profitable growth in the US, while there was a softer market environment in Canada.
The Latin America region stabilized in Q3, with good performance in Colombia and cement volume growth in Brazil. Markets in Mexico and Ecuador were softer while effective cost and price management partially mitigated these challenges.
The Asia Pacific region showed strong margin improvement in Q3. The good progress in India was driven by price and easing cost inflation despite softer demand. Effective turnaround initiatives supported resilient performance in Australia, while China continued to deliver another positive contribution in Q3.
Ongoing turnaround efforts in the Middle East Africa region partially offset a challenging environment in key markets, and while difficult market conditions persist in Algeria and Egypt, there were performance improvements in South Africa, Iraq and Jordan.
Commenting on the results, chief executive officer Jan Jenisch said: ‘Q3 is the fifth consecutive quarter of over-proportional growth in profitability and we are on track to achieve all targets for 2019. I would like to congratulate all employees for executing Strategy 2022 with high speed and impressive results.
‘Our financial discipline is generating value and we are making significant progress in cash conversion and in deleveraging our balance sheet. We expect the positive dynamics to continue into the fourth quarter and we are confident that we will deliver a strong full-year performance and achieve a new level of balance sheet strength.’