Holcim is reporting record net sales of CHF$14,681 million for the first half of 2022, up 16.9% in Swiss francs and 12.7% on a like-for-like basis compared to the prior year. The increase was driven by sales growth in all segments. Net sales in the second quarter alone were CHF$8,240 million, or 13.6% higher like-for-like than the prior-year period.
An outstanding performance was delivered in North America, led by double-digit growth. Market demand was excellent, supported by a significant contribution from the roofing business. Price momentum was also strong with a full order book and robust demand in all end-markets. Sales of aggregates were flat from the first half of 2021.
Holcim is making 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 & Products segment reached 18% of the group’s total net sales in H1, up from 8% for 2020, putting the company on track to reach its strategic goal of 30% of net sales from Solutions & Products by 2025.
Holcim continued to progress in its sustainability ambitions with ECOPact green concrete reaching 10% of ready-mix concrete net sales in the first half of 2022, on its way to delivering the strategic target of 25% 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 the first half of 2022, on track to reach 10 million tons by 2025.
Despite volatile market conditions and geopolitical uncertainty, Holcim expects growth momentum to continue with:
- Growth in net sales of at least 10% LFL, upgraded from 8%, and at least 10% in Swiss francs.
- Double-digit net sales growth in Solutions & Products to achieve net sales of above CHF$5 billion.
- Accelerated progress toward 2025 sustainability targets.
- Positive growth in Recurring EBIT like-for-like and in Swiss francs.
- Free Cash Flow above CHF$3 billion.
CEO Jan Jenisch said: “I would like to thank all members of the Holcim family for their continued resilience and outstanding performance in spite of our challenging times. Our teams are going above and beyond to keep our people and communities safe, while firmly leading our decarbonization journey. I am encouraged by how we are engineering scalable Carbon Capture Utilization and Storage technologies, which are receiving innovation grants in the EU to advance their impact.
“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.’ Our roofing and insulation businesses stood out as growth engines, on track to reach pro-forma net sales of CHF$3.5 billion in 2022. This remarkable achievement gives us the confidence to revise our 2022 guidance to at least 10% net sales growth on a like-for-like basis.”