(Boursier.com) — Holcim published a net turnover for the 3rd quarter of 7,340 million CHF, or +4.3% organic growth. Recurring EBIT reached a record level in the 3rd quarter of CHF 1,600 million.
New Roofing Systems’ ambition to achieve net revenue above USD 6 billion and EBIT above USD 1.3 billion by 2026 is reaffirmed.
The group highlights the 20% reduction in CO emissions? by net turnover over 9 months 2023.
Profitability is among the best in the sector, raising full-year forecasts for recurring EBIT margin to over 17%.
Jan Jenisch, Chairman and CEO, said: “I thank all members of the Holcim family for achieving profitable growth in the third quarter despite challenging economic conditions, marked by slowing demand in some markets and lower rates of return. unfavorable changes. It is a testament to the resilience and efforts of our teams in all our markets to lead the transition to sustainable building.
The third quarter confirms Holcim’s strong profit profile, with broad-based growth drivers driving a further increase in profitability. This performance gives us the confidence to raise our 2023 guidance to a peak recurring EBIT margin above 17% for the year, and advance our roofing systems ambition to reach over $6 billion in sales net income and $1.3 billion in EBIT by 2026.
Leading the transition to sustainable construction, we have reduced our CO emissions? by net turnover of 20% during the first 9 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. By promoting circular construction, we increased our recycling of construction demolition materials by 17% in the first 9 months and we are developing our ECOCycle technology. As part of our net zero emissions journey, we continue to advance our carbon capture, utilization and storage projects and have secured a sixth grant from the European Union Innovation Fund, partnering to increase our impact.
Continued profitable growth
Profitable growth therefore continued in the third quarter of 2023 despite economic difficulties. Net sales amounted to CHF 7,340 million, an organic increase of 4.3% compared to the same period of the previous year. Net sales for the first 9 months of 2023 amounted to CHF 20,407 million, an organic increase of 6.2% compared to the same period of the previous year.
Recurring EBIT reached a record level of CHF 1,600 million in the third quarter of 2023, an organic increase of 14.1% compared to the same period of the previous year. The absolute increase in recurring EBIT of CHF 49 million compared to the same period of the previous year was achieved despite a slowdown in demand in some markets and a negative currency effect of CHF 157 million. Recurring EBIT for the 9 months amounted to CHF 3,643 million, an organic increase of 13.8%. Holcim’s recurring EBIT margin for the first nine months reached a record high of 17.9%, up 1.5 percentage points. Holcim raised its full-year 2023 recurring EBIT margin guidance to over 17% from over 16%.
New ambition for roofing systems
Strengthening its leadership in roofing systems, Holcim announced its new ambition to achieve net sales above USD 6 billion and EBIT above USD 1.3 billion by 2026, at its investor day in September. This new ambition is driven by Holcim’s above-market growth and disproportionate increase in profitability.
Accelerate climate action
By decarbonizing its construction solutions, Holcim has reduced its CO emissions? by net sales of 43% since 2020. Accelerating green growth, ECOPact low-carbon concrete accounted for 19% of Holcim’s net sales in the first 9 months and is poised to become a leading brand a billion francs this year. ECOPlanet low-carbon cement accounted for 19% of net cement sales in the first nine months, on track to become a CHF2 billion brand this year. Holcim increased its recycling of construction demolition materials by 17% in the first 9 months compared to the year-ago period and is driving circular construction with the scaling of its ECOCycle technology.