LafargeHolcim reports positive 2018

LafargeHolcim has announced that its net sales increased 5.1 per cent on a like-for-like basis to CHF27,466m (US$27,344m) for 2018. Recurring EBITDA finished at CHF6016m, up 3.6 per cent like-for-like for the full-year period, after a positive performance by the company’s cement, aggregates and ready-mix concrete segments. Net income advanced 10.8 per cent YoY to CHF1569m, compared with CHF1417m of 2017.

Group sales of cement rose 4.4 per cent like-for-like at 221.9Mt, while aggregates showed 1.2 per cent growth to 273.8Mt.

"Our momentum accelerated in the second half of 2018 during which we exceeded our sales targets while profitability increased over-proportionally. We completed a very successful 2018 with a double-digit EPS growth and progressed significantly towards our deleveraging target. I am very proud of the fast roll-out of Strategy 2022 – ‘Building for Growth’ and congratulate all employees and teams on the impressive results. We are well-positioned and I am expecting a further acceleration of our growth and earnings dynamic in 2019," said Jan Jenisch, CEO.

Asia-Pacific
The Asia-Pacific region benefited from favourable market conditions in most countries, leading to strong net sales and recurring EBITDA growth of 8.3 and 22.5 per cent on a like-for-like basis, respectively. Total cement sales reached 89.7Mt, a fall of 3.1 per cent YoY compared with 92.6Mt in 2017. China was a key driver of higher profitability, India’s solid demand was driven by infrastructure and rural housing, whereas in the Philippines demand was mainly supported by the public sector.

Europe
Increased public infrastructure spending in eastern and central Europe combined with a rebound in construction and residential segments resulted in a positive year for the region. Net sales were up 7.8 per cent YoY to CHF7554m from CHF7008m, while cement sales showed a 5.2 per cent increase to 45.3Mt.

Latin America
After a strong first half of 2018, the Latin America region suffered an overall softening of cement demand in the last six months, according to a press release. In total, cement sales increased 3.5 per cent like-for-like to 25.1Mt. Net sales for the segment improved 9.4 per cent on a like-for-like basis, as a result of price increases.

The 1H18 performance was boosted by large infrastructure projects in Mexico, solid demand in Argentina and economic acceleration in Brazil. However, in the second half of the year, the company saw a decline in volumes due to the post-election slowdown in Mexico, Argentina's economic collapse and a generally weaker demand in Ecuador and Central America.

Middle East & Africa
Consolidated cement volumes grew by 0.4 per cent on a like-for-like basis to 35.9Mt. However, despite the increase in volumes net sales for the region declined 4.3 per cent to CHF3080m. This decrease has been attributed to price pressure and lower volumes in oversupplied markets, particularly Algeria, Iraq and Jordan, amid a slowdown in Lebanon and Egypt in the 2H18. Meanwhile, net sales developed favourably in Nigeria, Egypt and east African countries.

North America
A positive growth strategy and bolt-on acquisitions contributed to positive results for the region in 2018. Net sales rose by three per cent LfL to CHF5875m, supported both by the US and Canada. Cement sales were also up 3.1 per cent to 19.8Mt.