LafargeHolcim boosts earnings in third quarter of 2020
LafargeHolcim’s like-for-like net sales fell by 2.6 per cent year-on-year to Euro 6.04 billion in the third quarter of 2020 from Euro 6.68 billion in the same period in 2019. However, its recurring earnings before interest and taxation (EBIT) rose by 10 per cent to Euro1.35 billion from Euro 1.33 billion. It attributed recurring EBIT margin growth to margin increase in its cement business and cost management under the ‘Health, Cost & Cash’ action plan. For the first nine months of 2020 net sales fell by 7.9 per cent year-on-year to Euro 16.0 billion from Euro 18.9 billion in the same period in 2019. Its EBIT decreased by 7.2 per cent to Euro 2.47 billion from Euro 2.88 billion.
“Our third quarter results demonstrate the resilience of our business and the strength of our decentralised, empowered operating model,” said chief executive officer (CEO) Jan Jenisch. “In addition, the Group saw an increase in revenues from its branded products, which are sold across its broad distribution and retail network. For example, the company recorded a volume increase of 5 per cent in its cement bag sales.”
Third quarter sales and earnings were either stable in improved in most regions with the exception of North America and Middle East Africa. In North America volumes were reduced by coronavirus and a slowdown in the oil and gas industry in western Canada. Overall sales fell in Middle East Africa but earnings were aided by sales volume growth in Nigeria. Elsewhere, cement market recovery was noted in Mexico and Brazil and weaker markets mentioned in the Philippines and Australia.