Holcim in 1H2021: new records in Recurring EBIT, free cash flow and earnings per share

Holcim in 1H2021: new records in Recurring EBIT, free cash flow and earnings per share

• Growth momentum continues, net sales +16.6% LFL
• Significant margin increase in all regions, Recurring EBIT +72.2% LFL
• Record Free Cash Flow1 of CHF 814m, +9%
• 7 bolt-on acquisitions, successful start of Firestone Building Products
• Guidance for FY2021 Recurring EBIT growth upgraded to at least 18% LFL
• ECOPlanet launched globally and ECOPact now in all regions

(PRESS RELEASE) ZUG, 30-Jul-2021 — /EuropaWire/ — Holcim (SWX: HOLN), a global leader in innovative and sustainable building solutions, has announced the results for the H1 2021.

Performance overview H1

Jan Jenisch, CEO: “As we close H1 under our new Group identity, I sincerely thank all members of the Holcim family for the teamwork and resilience they continue to demonstrate to navigate the challenges of the pandemic. I am proud of how our 70,000 colleagues around the world are protecting our people and communities, with health and safety top of mind, while supporting our customers.

“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 share³. 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.

“I’m pleased by the strong start of the Firestone business, with its double-digit volume growth and expansion into Latin America. Also, our growth momentum continued in mature markets, fueled by seven bolt-on acquisitions. Advancing our vision to become the global leader in innovative and sustainable building solutions, we launched our global green cement range ECOPlanet following the success of ECOPact green concrete, accelerating sustainable construction around the world.”

Record Recurring EBIT, EPS³ and Free Cash Flow¹ growth in H1

Net sales of CHF 12,556 million for the first half of 2021 were up 16.6% on a like-for-like basis (LFL) compared to the prior year. The record increase was driven by volume growth in all regions and segments. Net sales in the second quarter alone were CHF 7,194 million, or 25.5% higher LFL than the prior-year period.

Recurring EBIT reached a record CHF 1,983 million for the first half of 2021, up 72.2% on a like-for-like basis compared to the prior-year period. This record result was driven by significant margin improvement in all business segments.

Earnings per share³ increased by 77.8% to reach CHF 1.43 for the first half of 2021 versus CHF 0.80 for H1 2020.

Free Cash Flow after leases was at CHF 814 million in the first half of 2021 versus CHF 749 million in H1 2020, up 8.6%, as the measures taken to protect the business during the global pandemic continued to deliver efficiencies.

Firestone Building Products starts strong; 7 bolt-on acquisitions in H1 to fuel future growth

With the acquisition of Firestone Building Products officially closed as of 31 March 2021, the company experienced strong demand in all product lines and regions with volumes up 21% in Q2. Firestone Building Products has already begun to leverage the Holcim global procurement and sales network, notably in Latin America, where Holcim Mexico introduced GacoFlex TechoProtec. Holcim also continued to develop its portfolio through seven bolt-on acquisitions in the first half of 2021, building capacity in mature European and North American markets, primarily in aggregates and ready-mix concrete.

Pursuing its ongoing portfolio optimization, in H1 Holcim entered agreements to divest operations in Zambia, Malawi and the Indian Ocean. Closing of all transactions is expected by year-end.

Leadership in green building solutions continues with ECOPlanet and ECOPact

Holcim continued to progress in its sustainability ambitions by introducing ECOPlanet, an innovative range of green cement that delivers at least 30% lower carbon footprint with equal to superior performance. ECOPlanet will be distributed across 15 markets in 2021. This builds on the success of ECOPact, the world’s broadest range of green concrete, which is now available in 24 markets across all regions.

Change in Executive Committee

The Board of Directors appointed Matthias Gaertner as Head of Legal and Compliance and member of the Group Executive Committee, effective 1 September 2021.

Matthias Gaertner, previously General Counsel of Honeywell Building Technologies, is a proven senior legal leader in innovation-driven building solutions with a strong track record in international mergers & acquisitions and compliance.

He succeeds Keith Carr who decided to pursue new opportunities outside of Holcim. He will continue to serve the company until the end of the year to ensure a seamless transition. The Board and Executive Committee sincerely thank Keith for his many contributions to the company’s success.

Outlook

Holcim expects the growth momentum to continue in all regions, supported as of H2 2021 from various stimulus programs. The company expects to continue the growth of Firestone Building Products and pursue further bolt-on acquisitions, while accelerating progress towards its 2030 sustainability targets.

For 2021 the company will deliver the following, with upgraded guidance on Recurring EBIT growth:

• Over-proportional growth in Recurring EBIT of at least 18% LFL (from at least 10% LFL previously)
• Capex less than CHF 1.4bn
• Return on invested capital above 8%

Moreover, Holcim expects to achieve all Strategy 2022 targets one year in advance.

Full release: https://www.holcim.com/h1-2021-results

Media relations Holcim
media@holcim.com
Zug: ​+41 (0) 58 858 87 10

Investor relations Holcim
investor.relations@holcim.com
Zug: +41 (0) 58 858 87 87

SOURCE: HOLCIM