Holcim reported net sales of CHF $5,725m and organic growth of 8% in the first quarter of 2023.
The North America region delivered a strong start to the year in Cement, Aggregates and Ready-Mix Concrete, with strong market demand in both the United States and Canada.
Roofing volumes were impacted by inventory normalization. Holcim’s roofing offer was further strengthened in the quarter with the closing of Duro-Last, alongside two other acquisitions in Aggregates. Order books are strong in all business segments.
The first quarter of 2023 in Latin America was the region’s 11th consecutive quarter of profitable organic growth, with performance driven by Mexico, Colombia and Argentina. The company expanded the Solutions & Products business in roofing and waterproofing in Argentina and in Mexico. Holcim expects these strong results to continue with an excellent pipeline of infrastructure projects ahead.
In Europe, Holcim delivered strong results across the region, with margin expansion driven by high-value solutions. Holcim closed two acquisitions in Solutions & Products and five in Aggregates and Ready-Mix. The company expects strong results to continue.
The Asia Middle East & Africa region showed profitable organic growth with significant margin expansion. Performance was driven by Australia, Algeria and Egypt. Decarbonizing its operations, the region delivered a significant increase in alternative fuels. Order books for the region are good and the recovery in China is progressing.
“I thank all members of the Holcim family for this strong start to the year,” said Jan Jenisch, CEO. “This quarter’s performance demonstrates the strength of our portfolio and regional footprint, delivering broad-based profitable growth, driven by high-value solutions, from ECOPact to ECOPlanet, supporting our customers in achieving their sustainability goals.
“In the first quarter of 2023, net sales grew organically by 8% and Recurring EBIT by 12%,” Jenisch continued. “This profitable growth was led by strong performances across our building materials businesses. Our teams continued our fast-paced execution, with 12 value-accretive acquisitions, including Duro-Last, completing our range of flat roofing systems. With strong underlying trends across all our businesses, we are confident we will close the full year strong. We are upgrading our guidance accordingly to achieve organic net sales growth of above 6% and organic Recurring EBIT growth of above 10%, while delivering an industry-leading Recurring EBIT margin of above 16%.
“We accelerated climate action with upgraded 1.5°C targets, as shared in our second Climate Report while expanding our range of sustainable building solutions. We reached 16% of ready-mix net sales with ECOPact low-carbon concrete and expanded our ECOPlanet range with two calcined clay production facilities in France and Mexico, delivering low-carbon cement with up to 50% less CO2. Scaling up circular construction, we launched our ECOCycle technology, recycling construction demolition materials into new building solutions, to exceed our 2025 target of 10 million tons,” Jenisch concluded.