In the third quarter of 2022, Holcim delivered another quarter of record results with net sales of CHF$8,045 million, up 16.3% on a like-for-like basis (LFL) compared to the prior year, or +10.4% of absolute growth. Net sales over the first nine months of 2022 were CHF$22,725 million, or 13.9% higher LFL than the prior-year period.
Recurring EBIT reached a record CHF$1,551 million in the third quarter of 2022, up 7.7% LFL compared to the prior-year period, or +1.2% of absolute growth. Recurring EBIT for the nine months was also a record at CHF$3,724 million, an increase of 6.5% LFL over the prior-year period.
The third quarter of 2022 was a quarter of successful transformation for Holcim, driven by its portfolio changes, the continued expansion of Solutions & Products, its strengthened geographic footprint and improved sustainability profile.
In the third quarter of 2022, Holcim strengthened its footprint in the North America region, representing 40% of the group’s net sales and 41% of Recurring EBIT. With this fast expansion, Holcim’s net sales in mature markets with resilient earnings profiles are projected to increase from 59% in 2019 to 77% in 2022 on a pro forma basis.
Holcim CEO Jan Jenisch said, “I thank all members of the Holcim family for delivering another quarter of record results while navigating challenging times. The third quarter of 2022 was a quarter of record performance and successful transformation for Holcim. We continued to expand Solutions & Products with four acquisitions and delivered ten bolt-ons in aggregates and ready-mix this year. We also completed the divestments of India and Brazil with cash proceeds of US$7.3 billion. Solutions & Products is already reaching 25% of our net sales in 20221, driven by the roofing business, which is delivering a record Recurring EBIT margin of 20%. We strengthened our footprint in the attractive North America market, accounting for 40% of sales and 41% of Recurring EBIT. With these achievements we are accelerating our decarbonization and significantly improving our sustainability profile this year. These record results give us the confidence to upgrade our 2022 guidance for net sales, Recurring EBIT and leverage, and launch a share buyback program.”
This quarter, Holcim continued to transform its portfolio with four acquisitions in Solutions & Products. In Europe, the group acquired Cantillana in Belgium and Izolbet in Poland, leaders in specialty building solutions. In the United States, Holcim acquired SES Foam, a leader in bio-based insulation systems, and Polymers Sealants North America, a leader in coating, adhesive and sealant solutions.
In addition, the company signed a total of 10 bolt-on acquisitions in the nine-month period in its aggregates and ready-mix concrete segments. In the third quarter of 2022, Holcim also successfully closed the sale of its businesses in India and Brazil, resulting in cash proceeds of $7.3 billion.
Strengthening its sustainability profile, Holcim’s carbon emissions per million of net sales will be 30% lower in 2022 on a pro forma basis compared to prior year.
Accelerating green growth in the third quarter of 2022, Holcim reached 15% of the group’s total sales of ready-mix concrete with ECOPact, the world’s broadest range of green concrete. Sales of ECOPlanet green cement also grew significantly and is now available in 26 markets worldwide. In Europe, the EU Innovation Fund awarded Holcim two grants for carbon capture, utilization and storage projects in Germany and Poland.
At New York Climate Week in September, Holcim announced the launch of the world’s first 1.5°C science-based framework to decarbonize its industry, resulting from its partnership with the Science Based Targets initiative (SBTi). This framework was independently developed by the SBTi, in collaboration with an Expert Advisory Group representing academia, civil society and industry.