Holcim’s net sales for the first half of 2022 were up by 16.9 per cent in Swiss francs, driven by sales growth in all regions.
Net sales in the second quarter alone were CHF 8,240 million ($12,305 million), which is a 13.6 per cent increase on a like-for-like basis compared to the previous year.
Recurring EBIT was CHF 2,173 million ($3,244 million), for the first half of 2022, up 9.6 per cent in Swiss francs and 5.7 per cent on a like-for-like basis compared to the prior-year period.
Recurring EBIT growth for the standalone second quarter was 7 per cent on a like-for-like basis, with strong price over cost.
According to Holcim, this is a record result and is driven by robust improvement of profitability in the solutions and products segment and strong recurring EBIT margin expansion in North America.
Holcim’s net income group share reached CHF 1,157 million ($1,727 million), up 38 per cent compared to the prior-year period.
Free cash flow after leases was at CHF 275 million in the first half of 2022 versus CHF 814 million (($1,215 billion) compared to the previous year.
Holcim reported strong progress on its portfolio transformation with the continued expansion of roofing, insulation, and specialty building solutions and eight bolt-ons in the first half of 2022.
The solutions and products segment made up 18 per cent of the Group’s total net sales in H1, up from 8 per cent for 2020,
Profitability of solutions and products also improved significantly, with a Recurring EBIT margin of 15 per cent for Q2 2022, up from 8.8 per cent in the prior year.
Roofing and insulation businesses are on track to reach pro-forma net sales of CHF 3.5 billion in 2022, while specialty building solutions pro-forma net sales are estimated to reach CHF 600 million.
Holcim has signed divestments for its businesses in India, Brazil, and Zimbabwe with expected proceeds of above USD 7 billion ($10 billion).
Holcim’s ECOPact green concrete reached10 per cent of ready-mix concrete net sales in H1 2022. This is in line with Holcim’s strategic target of 25 per cent of ready-mix sales by 2025.
ECOPlanet green cement also achieved significant net sales growth and is now available in 16 markets.
Driving circular construction, Holcim recycled 2.9 million tons of construction & demolition waste in its products in H1 2022, on track to reach 10 million tons by 2025.
Despite volatile market conditions and geopolitical uncertainty, Holcim expects growth momentum to continue.
“Our record results, from net sales to Recurring EBIT and earnings per share, are setting solid foundations to deliver our ‘Strategy 2025 – Accelerating Green Growth’,” Holcim chief executive Jan Jenisch said.
“Our roofing and insulation businesses stood out as growth engines, on track to reach pro-forma net sales of CHF 3.5 billion ($5,225 billion) in 2022.
“This remarkable achievement gives us the confidence to revise our 2022 guidance to at least 10 per cent net sales growth on a like-for-like basis.”