LafargeHolcim report accelerating earnings momentum

2016 results show significant improvements in EBITDA, cash flow and earnings per share

ACCORDING to LafargeHolcim’s latest annual results, 2016 was a year of accelerating earnings momentum for the company, with significant improvements and EBITDA and cash flow. 

While net sales were down 1.7%, on a like-for-like basis, at CHF26.9 billion (2015: CHF29.5 billion) for the full year ended 31 December 2016, adjusted operating EBITDA rose 8.7%, like-for-like, to CHF5.8 billion and adjusted operating EBITDA margin reached 21.6%, up from 19.5% in 2015.

Cash flow from operating activities was up 46.2% to CHF3.3 billion in 2016, on a like-for-like basis (2015: CHF2.5 billion), while net debt reduced by CHF2.5 billion from CHF17.2 billion in 2015 to CHF14.7 billion last year.

Commenting on the results, Eric Olsen, chief executive officer of LafargeHolcim, said: ‘2016 was a year of accelerating earnings momentum. We delivered significant improvements in EBITDA, cash flow and earnings per share with outperformance on synergies and excellent progress on cost and pricing.

‘Our strong execution was visible across our five regions which all grew earnings for…the year. This performance underlines the strength of our diversified portfolio, which has a good balance of mature and developing markets.

‘I am also pleased with the positive trajectory of markets such as the US, Nigeria, India and key countries in Europe, which we have singled out as important drivers for growth in 2017 and beyond.

‘We have demonstrated our earnings potential in 2016. Looking ahead, we expect to deliver top-line improvement and strong growth in adjusted operating EBITDA, cash flow and earnings per share in 2017, and we are on track to reach our 2018 targets.

‘This will support our commitments to a solid investment-grade rating, an attractive dividend policy and returning excess cash to shareholders.’