Holcim report record financial performance
Company achieves 11.3% growth in net sales and over-proportional recurring EBIT growth of +25.7% in 2021
HOLCIM have reported a record financial performance for the year ended 31 December 2021. The year closed with double-digit growth and the company expects growth momentum to continue in all regions in 2022.
Net sales of CHF26,834 million were up a record 11.3% on a like-for-like basis, compared with 2020, driven by volume growth in all regions and business segments and strong pricing.
Recurring EBIT grew over-proportionally in all regions and business segments and reached a record CHF4,612 million for 2021, up +25.7% on a like-for-like basis, compared with the prior year.
Free cash flow after leases amounted to CHF3,264 million for 2021 versus CHF3,249 million in 2020 – the third consecutive year in which free cash flow after leases has exceeded CHF3 billion, generating CHF9.5 billion in total over that time.
Net debt amounted to CHF9,977 million and the company maintained its strong balance sheet with a ratio of net debt to recurring EBITDA at 1.4 times. Return on invested capital was 8.9% in 2021, over-achieving on Holcim’s Strategy 2022 target of above 8.0%.
Chief executive officer Jan Jenisch said: ‘2021 was a record year for Holcim, reaching new levels of performance across our financial and ESG targets. What makes me most proud is how we navigated the Covid pandemic with such extraordinary resilience and agility, working tirelessly to keep our people and communities safe.
‘We delivered record financial performance across all our key metrics with net sales of CHF26.8 billion and over-proportional recurring EBIT growth of +25.7% like for like, reaching CHF4.6 billion, and a debt leverage ratio of 1.4 times.’
He added: ‘We achieved these unprecedented results while accelerating the expansion of Solutions & Products, advancing our vision to become the global leader in innovative and sustainable building solutions. My sincere thanks go to our 70,000 people who made all this possible while always keeping safety top of mind.’
Looking ahead, Holcim expect growth momentum to continue in all regions in 2022 with double-digit net sales growth in Solutions & Products, growth in net sales of more than 6% like-for-like, positive growth in recurring EBIT like-for-like, and free cash flow above CHF3 billion.