Strong Q3 net sales growth for LafargeHolcim

Company reports accelerated growth momentum with 5.8% increase in net sales in third quarter

LafargeHolcim say like-for-like net sales grew by 5.8%, to CHF7.3 billion, for the third quarter (Q3) of 2018 and by 5.1%, to CHF20.6 billion, in the first nine months, compared with the equivalent prior-year period, with growth driven by increased demand as well as sales price increases, and all four business segments contributing to the increase.

Recurring EBITDA grew over-proportionally by 8.1% in Q3, to CHF1.8 billion, compared with the prior-year period on a like-for-like basis, demonstrating strong momentum, whilst steep cost inflation in energy and logistics was more than offset by the company’s volume growth as well as the effectiveness of its pricing and efficiency programmes.

The North America region delivered a robust contribution supported by favourable market conditions and successful commercial initiatives, whilst results from the Latin America region were lower in Q3 2018 compared with the very strong performance in the prior-year period, impacted by weakening demand in several countries.

The Europe region delivered positive results overall, with continued good momentum from most key markets, whilst the Middle East Africa region showed signs of stabilization in key markets. The Asia Pacific region had another strong quarter, supported by contributions from China and India as well as improved performance in South East Asia.

Jan Jenisch (pictured), chief executive officer of LafargeHolcim, said: ‘In Q3 we were able to increase our positive momentum and continue delivering on our Strategy 2022 – ‘Building for Growth’. Despite headwinds from steep cost inflation, we delivered stronger net sales and our earnings grew even faster.

‘I am very satisfied with our growth in volumes, our solid pricing and the impact of our cost and efficiency programmes. We are executing at full speed on our Strategy 2022 – ‘Building for Growth’.’