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    HOLN   CH0012214059

HOLCIM LTD

(HOLN)
  Report
Delayed Quote. Delayed Swiss Exchange - 09/22 11:30:49 am
45.38 CHF   +1.61%
09/20HOLCIM : JP Morgan is now Neutral
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09/17HOLCIM : Credit Suisse Lowers Price Target on Holcim, Maintains Outperform Recommendation
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09/17HOLCIM : Credit Suisse reiterates its Buy rating
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EQS-Adhoc : Profitable growth continues, record results in H1

07/30/2021 | 12:32am EDT
EQS Group-Ad-hoc: Holcim Group Services Ltd / Key word(s): Half Year Results 
Profitable growth continues, record results in H1 
30-Jul-2021 / 06:31 CET/CEST 
Release of an ad hoc announcement pursuant to Art. 53 LR 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
  . Growth momentum continues, net sales +16.6% LFL 
  . Significant margin increase in all regions, Recurring EBIT +72.2% LFL 
  . Record Free Cash Flow[1] of CHF 814m, +9% 
  . 7 bolt-on acquisitions, successful start of Firestone Building Products 
  . Guidance for FY2021 Recurring EBIT growth upgraded to at least 18% LFL 
  . ECOPlanet launched globally and ECOPact now in all regions 
Performance overview H1 
Group (in million CHF)                        H1 2021 H1 2020 ±%     ±%LFL 
Net sales                                      12,556  10,693 +17.4  +16.6 
Recurring EBIT                                1,983   1,194   +66.1  +72.2 
Recurring EBIT margin (%)                     15.8    11.2 
Operating profit (EBIT)                       1,794   1,005   +78.6 
Net income[2]                                 839     347     +142.1 
Net income before impairment and divestments2 881     501     +76.0 
EPS before impairment and divestments (CHF)   1.43    0.80    +77.8 
Free Cash Flow1                               814     749     +8.6 
Net financial debt                            12,438  10,652  +16.8 

Jan Jenisch, CEO: 'As we close H1 under our new Group identity, I sincerely thank all members of the Holcim family for the teamwork and resilience they continue to demonstrate to navigate the challenges of the pandemic. I am proud of how our 70,000 colleagues around the world are protecting our people and communities, with health and safety top of mind, while supporting our customers.

'At this time last year I said that Holcim would emerge stronger from this crisis. These half-year results prove it. In the first half of 2021 we set new records in Recurring EBIT, free cash flow and earnings per share[3]. I congratulate our teams for this remarkable achievement and for giving me the confidence to revise our 2021 guidance for Recurring EBIT growth to at least 18% like for like.

'I'm pleased by the strong start of the Firestone business, with its double-digit volume growth and expansion into Latin America. Also, our growth momentum continued in mature markets, fueled by seven bolt-on acquisitions. Advancing our vision to become the global leader in innovative and sustainable building solutions, we launched our global green cement range ECOPlanet following the success of ECOPact green concrete, accelerating sustainable construction around the world.' Record Recurring EBIT, EPS3 and Free Cash Flow1 growth in H1

Net sales of CHF 12,556 million for the first half of 2021 were up 16.6% on a like-for-like basis (LFL) compared to the prior year. The record increase was driven by volume growth in all regions and segments. Net sales in the second quarter alone were CHF 7,194 million, or 25.5% higher LFL than the prior-year period.

Recurring EBIT reached a record CHF 1,983 million for the first half of 2021, up 72.2% on a like-for-like basis compared to the prior-year period. This record result was driven by significant margin improvement in all business segments.

Earnings per share3 increased by 77.8% to reach CHF 1.43 for the first half of 2021 versus CHF 0.80 for H1 2020.

Free Cash Flow after leases was at CHF 814 million in the first half of 2021 versus CHF 749 million in H1 2020, up 8.6%, as the measures taken to protect the business during the global pandemic continued to deliver efficiencies. Firestone Building Products starts strong; 7 bolt-on acquisitions in H1 to fuel future growth

With the acquisition of Firestone Building Products officially closed as of 31 March 2021, the company experienced strong demand in all product lines and regions with volumes up 21% in Q2. Firestone Building Products has already begun to leverage the Holcim global procurement and sales network, notably in Latin America, where Holcim Mexico introduced GacoFlex TechoProtec. Holcim also continued to develop its portfolio through seven bolt-on acquisitions in the first half of 2021, building capacity in mature European and North American markets, primarily in aggregates and ready-mix concrete.

Pursuing its ongoing portfolio optimization, in H1 Holcim entered agreements to divest operations in Zambia, Malawi and the Indian Ocean. Closing of all transactions is expected by year-end. Leadership in green building solutions continues with ECOPlanet and ECOPact

Holcim continued to progress in its sustainability ambitions by introducing ECOPlanet, an innovative range of green cement that delivers at least 30% lower carbon footprint with equal to superior performance. ECOPlanet will be distributed across 15 markets in 2021. This builds on the success of ECOPact, the world's broadest range of green concrete, which is now available in 24 markets across all regions.

Change in Executive Committee

The Board of Directors appointed Matthias Gaertner as Head of Legal and Compliance and member of the Group Executive Committee, effective 1 September 2021.

Matthias Gaertner, previously General Counsel of Honeywell Building Technologies, is a proven senior legal leader in innovation-driven building solutions with a strong track record in international mergers & acquisitions and compliance.

He succeeds Keith Carr who decided to pursue new opportunities outside of Holcim. He will continue to serve the company until the end of the year to ensure a seamless transition. The Board and Executive Committee sincerely thank Keith for his many contributions to the company's success. Outlook

Holcim expects the growth momentum to continue in all regions, supported as of H2 2021 from various stimulus programs. The company expects to continue the growth of Firestone Building Products and pursue further bolt-on acquisitions, while accelerating progress towards its 2030 sustainability targets.

For 2021 the company will deliver the following, with upgraded guidance on Recurring EBIT growth: . Over-proportional growth in Recurring EBIT of at least 18% LFL (from at least 10% LFL previously) . Capex less than CHF 1.4bn . Return on invested capital above 8%

Moreover, Holcim expects to achieve all Strategy 2022 targets one year in advance. Key Group figures

Group Q2                                          2021      2020    ±%    ±%LfL 
Net sales (CHFm)                                   7,194     5,400  33.2  25.5 
Recurring EBIT (CHFm)                              1,455    932     56.1  55.8 
Recurring EBIT margin (%)                         20.2      17.3 
 
Group H1 (in million CHF)                         2021      2020    ±%    ±%LfL 
Net sales                                          12,556    10,693 17.4  16.6 
Recurring EBIT                                    1,983     1,194   66.1  72.2 
Recurring EBIT margin (%)                         15.8      11.2 
Operating profit (EBIT)                           1,794     1,005   78.6 
Net income^2                                      839       347     142.1 
Net income before impairment and divestments^2    881       501     76 
EPS before impairment and divestments (CHF)       1.43      0.8     77.8 
Free Cash Flow after leases                       814       749     8.6 
Net financial debt                                12,438    10,652  16.8 
 
Group results by segment                          H1 2021   H1 2020 ±%    ±%LfL 
Sales of cement (mt)                              99        87.2    13.5  13.2 
Net sales of Cement (CHFm)                        7,932     7,029   12.9  20.3 
Recurring EBIT of Cement (CHFm)                   1,654     1,131   46.3  57.5 
Recurring EBIT margin of Cement (%)               20.9      16.1 
 
Sales of aggregates (mt)                          123       113.8   8.1   6.2 
Net sales of Aggregates (CHFm)                      1,864     1,699 9.7   7.2 
Recurring EBIT of Aggregates (CHFm)               217       101     115.2 107 
Recurring EBIT margin of Aggregates (%)           11.6      5.9 
 
Sales of ready-mix concrete (m m^3)               22.1      19.2    15.6  13.9 
Net sales of Ready-Mix Concrete (CHFm)              2,462     2,103 17.1  14.3 
Recurring EBIT of Ready-Mix Concrete (CHFm)       40        -47     184   183.9 
Recurring EBIT margin of Ready-Mix Concrete (%)   1.6       -2.2 
 
Net sales of Solutions & Products (CHFm)          1,423     819     73.8  8.7 
Recurring EBIT of Solutions & Products (CHFm)     72        6       n.m.  n.m. 
Recurring EBIT margin of Solutions & Products (%) 5.1       0.8 

Region Asia Pacific

The Recurring EBIT margin expansion for the first six months of 2021 of 5.7pp was the highest of all the regions. This strong performance was driven by robust cement volume growth across the region and the good performance in Australia, which benefited from government stimulus programs. India delivered outstanding margin improvement despite a second wave of COVID-19 infections and inflationary pressure. Marwar Mundwa cement capacity expansion in India will commence operations in Q3 2021.

Asia Pacific                            H1 2021 H1 2020 ±%    ±%LFL 
Sales of cement (mt)                    35.8    28.0    +27.9 +28.0 
Sales of aggregates (mt)                16.9    13.1    +28.4 +12.5 
Sales of ready-mix concrete (m m3)      3.9     3.6     +8.6  +8.6 
Net sales to external customers (CHFm)  2,998   2,413   +24.3 +25.9 
Recurring EBIT (CHFm)                   713     437     +63.1 +65.8 
Recurring EBIT margin (%)               23.8    18.1 

Region Europe

(MORE TO FOLLOW) Dow Jones Newswires

July 30, 2021 00:31 ET (04:31 GMT)

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Financials
Sales 2021 26 582 M 28 675 M 28 675 M
Net income 2021 2 490 M 2 686 M 2 686 M
Net Debt 2021 9 966 M 10 750 M 10 750 M
P/E ratio 2021 11,3x
Yield 2021 4,48%
Capitalization 27 759 M 30 100 M 29 946 M
EV / Sales 2021 1,42x
EV / Sales 2022 1,26x
Nbr of Employees 67 409
Free-Float 86,1%
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Number of Analysts 22
Last Close Price 45,38 CHF
Average target price 65,03 CHF
Spread / Average Target 43,3%
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Managers and Directors
Jan Jenisch Chief Executive Officer & Director
GÚraldine Picaud Chief Financial Officer
Beat W. Hess Chairman
Keith Carr Head-Legal & Compliance
Adrian W. Loader Independent Director
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