Record 2023 results for Holcim
Company reports strong organic net sales growth, recurring EBIT up 14.7% and record free cash flow of CHF3.7 billion
HOLCIM have reported a record financial performance for the year ended 31 December 2023.
Net sales of CHF 27,009 million for 2023 were up 6.1% on an organic basis, compared with 2022, whilst recurring EBIT reached a record CHF4,760 million for 2023, up 14.7% organically, compared to the prior year. These record results, say Holcim, were driven by positive price over cost in cement, aggregates, and ready-mixed concrete.
Free cash flow after leases amounted to CHF3,705 million for 2023 versus CHF2,765 million in 2022, with a record cash conversion ratio of 58%. During 2023, Holcim’s recurring EBIT margin reached an industry-leading 17.6%, which reflected the Group’s successful shift from volume to value.
Holcim’s net financial debt was CHF7,896 million at the end of 2023 for a net debt leverage ratio of 1.2x, whilst the Group’s return on invested capital (ROIC) for 2023 was 10.6%. With these results, Holcim say, they are achieving their Strategy 2025 two years ahead of schedule.
Jan Jenisch, chairman and chief executive officer of Holcim, said: ‘With record results in 2023, Holcim is stronger than ever, achieving Strategy 2025 two years ahead of plan. Thanks to our empowered and accountable performance culture, our 63,448 colleagues worldwide went above and beyond to deliver advanced branded solutions for our customers.
‘Our ‘multi-billion Swiss franc brands’ from ECOPact and Elevate to Fuerte now represent 30% of our net sales. We accelerated our leadership in sustainability, reducing our CO2 per net sales by 20% compared to 2022, while making decarbonization a driver of profitable growth and driving fast-paced growth in circular construction, with a 24% increase in recycled construction demolition materials in 2023.’
