Holcim posts record results in 2023

Holcim posts record results in 2023
28 February 2024

Holcim has posted record results in 2023 with full-year net sales of CHF27,009m (US$30,662m), compared to CHF29,189m in the previous year. Recurring EBIT over the same period advanced from CHF4752m to CHF4760m, while operating profit improved from CHF3221m to CHF4577m. Earnings per share declined from CHF5.48 in 2022 to CHF5.37 a year later. According to the company, the record results were driven by positive price over cost in cement, aggregates and ready-mix. 

Commenting on the results, Jan Jenisch, chairman and CEO, said, “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 per cent were family-owned companies bringing significant synergy upside, while closing 19 divestments.”

In 2023 Holcim grew fast in the most attractive markets. North America accounted for 39 per cent of group net sales and Europe for 34 per cent, up from 22 per cent and 28 per cent, respectively, in 2018. Solutions & Products has expanded rapidly to account for 21 per cent of group net sales in 2023, up from nine per cent in 2018, and putting the company on track to reach its strategic goal of 30 per cent of net sales from the segment by 2025. Net sales to external customers in Solutions & Products reached CHF5608m in 2023. 

Solutions & Products grew further in 2023 through 11 acquisitions, including the iconic Duro-Last brand. Holcim continued to expand its aggregates and ready-mix concrete portfolio with 17 bolt-on acquisitions, delivering significant growth and synergies. In addition to these 28 acquisitions, Holcim signed agreements to sell its businesses in Uganda, South Africa and Tanzania to further sharpen its geographic footprint. 

Holcim has also continued to advance decarbonisation as a driver of profitable growth, reducing CO2 per net sales by 20 per cent in 2023 and by a total of 42 per cent since 2020. 2023 also saw Holcim announce its goal to offer 8Mta of net-zero cement by 2030. This will be enabled by Holcim’s carbon capture, utilisation and storage projects, six of which have now been selected for grants from the European Union Innovation Fund to capture 5Mta of CO2 per by 2030. 

Published under Cement News