Holcim is reporting first-quarter 2024 net sales of CHF $5.586 billion, a 2.4% decline from CHF$5,725 in 2023.
North America delivered margin expansion with a 3.9% increase in local currency recurring EBIT driven by strong underlying market demand. While the first quarter was impacted by fewer shipping days and adverse weather conditions, strong performance is expected to continue in 2024.
In Latin America, Holcim achieved record first-quarter net sales and recurring EBIT, along with a strong margin expansion to above 36%. The nearshoring trend in Mexico accelerated during the quarter and the region has a strong pipeline of infrastructure projects ahead.
Europe delivered double-digit first-quarter recurring EBIT growth, with an increase in the recurring EBIT margin of 1.5 percentage points: the sixth consecutive quarter of margin improvement. The strong results are set to continue, the company stated.
In Asia Middle East and Africa, profitable growth in local currency continued with an expansion in recurring EBIT margin of 1.7 percentage points. The region recorded a significant increase in alternative fuels usage, advancing decarbonization.
Solutions & Products posted strong results, with recurring EBIT more than doubling versus the prior year period and margin expansion of 2 percentage points. Growth in net sales was mainly driven by roofing, with normalization of demand after destocking. Sales in roofing were up 67% in local currency, of which 38% came from organic growth and 22% from the acquisition of Duro-Last.
Holcim continued its M&A execution during the quarter, making five acquisitions of family-owned businesses and closing four divestments.
In Solutions & Products, Holcim acquired ZinCo, a global leader in advanced green roofing systems based in Germany, and Tensolite, a leading manufacturer of innovative precast and pre-stressed concrete construction systems with a strong presence in fast-growing Latin American markets.
Holcim made three acquisitions in aggregates, ready-mix and construction demolition materials, while closing the divestments of Russia, South Africa, Tanzania, and Uganda.
Jan Jenisch, chairman and CEO stated, “I thank all members of the Holcim family for driving the strong start to the year. This quarter’s performance, with a significant contribution from Solutions & Products, demonstrates the strength of our market-leading positions.
“In the first quarter of 2024, we delivered over-proportional recurring EBIT growth of 17.1% in local currency, which more than offset the strength of the Swiss franc. We continued to execute value-accretive transactions, making five acquisitions and closing four divestments, with net M&A adding more than 3% to our net sales in the first quarter. With the further expansion of our industry-leading recurring EBIT margin, I confidently confirm our full-year guidance for 2024.
“During the quarter, we accelerated our advanced branded solutions, with ECOPact and ECOPlanet reaching 26% of total ready-mix and cement sales, respectively. Advancing climate action, we reduced CO2 per net sales by a further 5% year-on-year and hosted the groundbreaking of our carbon capture and utilization project with our partners in Germany,” Jenisch concluded.