Holcim reported that profitable growth continued in the third quarter 2023 despite economic headwinds. Net sales were CHF 7,340 million, up 4.3% organically compared to the prior-year period. Net sales over the first nine months of 2023 were CHF 20,407 million, or 6.2% higher organically than in the prior-year period.
In the first nine months, North America delivered record net sales of CHF 5.07 billion and recurring EBIT, leading to a recurring EBIT margin of 21.7%. There was an over-proportional organic growth of 19.8% in recurring EBIT over the same timeframe, with good performance expected to continue in the fourth quarter.
Jan Jenisch, chairman and CEO said, “I thank all members of the Holcim family for delivering profitable growth in the third quarter despite challenging economic conditions, marked by softer demand in some markets and foreign exchange headwinds. This is a testimony to our teams’ resilience and efforts across all our markets to lead the transition to sustainable building.
“The third quarter confirms Holcim’s strong earnings profile, with broad-based growth drivers delivering another increase in profitability. This performance gives us the confidence to upgrade our 2023 guidance to an industry-leading recurring EBIT margin of above 17% for the year, and advance our roofing systems ambition to reach above $6 billion in net sales and $1.3 billion in EBIT by 2026.
“Leading the transition to sustainable building, we reduced our CO₂ per net sales by 20% in the first nine months of the year. We continue to build momentum with our sustainable brands generating billions in net sales, from ECOPact low-carbon concrete to Elevate advanced roofing systems. Driving circular construction, we increased our recycling of construction demolition materials by 17% in the first nine months and are scaling up our ECOCycle technology. As part of our net zero journey, we continue to advance our carbon capture, utilization and storage projects and secured a sixth European Union innovation fund grant, partnering to scale up our impact.”
Decarbonizing its building solutions, Holcim has reduced its CO₂ per net sales by 43% since 2020. Accelerating green growth, ECOPact low-carbon concrete accounted for 19% of Holcim’s ready-mix net sales in the first nine months, and is on track to be a CHF 1 billion brand this year. ECOPlanet low-carbon cement accounted for 19% of cement net sales in the first nine months, on course to becoming a CHF 2 billion brand this year. Holcim increased its recycling of construction demolition materials by 17% in the first nine months compared to the prior-year period, and is driving circular construction with the scale-up of its ECOCycle technology.
In the third quarter, Holcim secured a sixth European Union innovation fund grant for the development of carbon capture, utilization and storage technology. The grant was awarded to Holcim’s plant in Milaki, Greece, which aims to capture 1 million tons of CO₂ per annum as of 2029. This is a further step on Holcim’s decarbonization journey, and its commitment to invest CHF 2 billion by 2030 in carbon capture, utilization and storage technology and to capture 5 million tons of CO₂ annually by 2030.