Holcim released its financial results for fourth-quarter and full-year 2023. In the fourth quarter, recurring EBIT rose 17.9% organically compared to the prior-year period to reach a record CHF 1,117 million. Fourth-quarter net sales of CHF 6,602 million rose 5.5% on an organic basis versus the fourth quarter of 2022.
Holcim’s profitable growth more than offset strong foreign exchange effects, with fourth-quarter net sales up 2.1% and recurring EBIT up 8.7% in Swiss franc versus the prior-year period.
Full-year net sales of CHF 27,009 million for 2023 were up 6.1% on an organic basis compared to the prior year. Recurring EBIT reached a record CHF 4,760 million for 2023, up 14.7% organically compared to the prior year. This record result was driven by positive price over cost in cement, aggregates and ready-mix.
“With record results in 2023, Holcim is stronger than ever, achieving Strategy 2025 two years ahead of plan. Thanks to our empowered and accountable performance culture, our 63,448 colleagues worldwide went above and beyond to deliver advanced branded solutions for our customers,” said Chairman and CEO Jan Jenisch. “Our ‘multi-billion Swiss franc brands’ from ECOPact and Elevate to Fuerte now represent 30% of our net sales. We accelerated our leadership in sustainability, reducing our CO2 per net sales by 20% compared to 2022, while making decarbonization a driver of profitable growth and driving fast-paced growth in circular construction, with a 24% increase in recycled construction demolition materials in 2023.
Jenisch continued, “Moving our business from volume to value, we have successfully shifted to the most attractive markets with strong growth drivers and margins. Through our disciplined M&A approach for superior value creation, Holcim delivered 97 value-accretive transactions since 2018, including six major acquisitions in Solutions & Products and 72 bolt-ons, of which 80% were family-owned companies bringing significant synergy upside, while closing 19 divestments.
“Thanks to our broad-based, profitable organic growth, we achieved a superior earnings profile, with industry-leading margins including a recurring EBIT margin of 17.6% and record free cash flow of CHF 3.7 billion. As we move forward in 2024, we are committed to another year of record results and value creation for all of our stakeholders. I sincerely thank all our colleagues around the world for making Holcim the great company it is today,” he concluded.