LafargeHolcim deliver strong first half in 2019

Higher cement volumes and pricing management help boost net sales and growth in all regions 

LafargeHolcim have reported net sales grew 3.5%, on a like-for-like basis, to CHF13,059 million in the first half of 2019, compared with the same period last year. 

Recurring EBITDA (pre-IFRS16) reached CHF2,662 million during the first half of the year, up 10.8% on a like-for-like basis, versus the comparable period in 2018, with all business segments, including cement, aggregates and ready-mixed concrete, contributing to the growth in profitability.

LafargeHolcim said the increase in net sales on a like-for-like basis was driven by successful pricing management and higher cement volumes. Net sales grew across all of the Group’s operating regions, in particular Europe and North America.

Free cash flow improved significantly and reached CHF262 million in the first half of the year (2018: –CHF473 million), reflecting the improvement in EBITDA and net working capital, lower income tax and interest paid, while net debt was reduced by around CHF4,787 million to CHF11,340 million (2018: CHF16,127 million).

Commenting on the results, chief executive officer Jan Jenisch (pictured) said: ‘We have achieved a strong first half of the year and successfully continued our profitable growth strategy. All business segments have contributed to this success and to the continued over-proportional growth in profitability.

‘Our financial discipline resulted in strong progress in cash flow and a significant reduction in debt. We are executing our Strategy 2022 – ‘Building for Growth’ at full speed and we are confident that we will achieve our targets for 2019.’