Strong Q1 Performance for LafargeHolcim Amid Economic Challenges

LafargeHolcim reported a robust start to 2024, overcoming economic adversities to post significant gains in key financial metrics. Despite a slight decline in net sales in Swiss francs by 2.4%, local currency adjustments revealed a 3.4% increase, suggesting strong underlying market performance.

The company's recurring EBIT saw notable gains, rising 17.1% in local currency and 7.8% in Swiss francs. These figures indicate a successful strategy in operation efficiency and profitability, with an increased EBIT margin of 0.9 percentage points. This growth was partly fueled by a 67% increase in roofing sales under its Solutions & Products sector, reflecting robust demand and effective market adaptation.

LafargeHolcim also continued its strategic mergers and acquisitions, executing five acquisitions and four divestments which contributed over 3% to net sales growth in Q1. These actions support the company's ongoing focus on core growth areas and optimizing its portfolio amidst dynamic market conditions.

In its environmental efforts, LafargeHolcim emphasized its commitment to sustainability by enhancing its low-carbon product lines, ECOPact and ECOPlanet, which now represent 26% of ready-mix and cement sales respectively—a significant increase from the previous year. This aligns with its broader goal of reducing CO2 emissions, with a 5% decrease per net sales year-on-year and the initiation of a major carbon capture project in Germany.

With these results, LafargeHolcim not only confirms its guidance for 2024 but also projects continuous growth with an optimistic financial outlook, including expectations of increased EBIT margin and substantial free cash flow above CHF 3 billion.