|
Holcim Group Services Ltd / Key word(s): Annual Results
Record performance in 2024, well positioned for 2025
28-Feb-2025 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
- Full-year net sales of CHF 26,407m
Recurring EBIT of CHF 5,049m, +10.8% in local currency, +6.1% in CHF
- Expansion of industry-leading recurring EBIT margin to 19.1%, +150bps
- Earnings per share1 of CHF 5.70, up 5.3%
- Free cash flow after leases of CHF 3,801 million, up 2.6%
- Proposed 11% increase in dividend to CHF 3.10
- 20% recycled construction demolition materials to 10.2 million tons
- Planned listing of North American business on track to occur by end of H1 2025, strong 2025 outlook
Performance overview
|
Group Q4
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales (CHFm)
|
6,473
|
6,602
|
-1.9
|
+1.6
|
+0.9
|
|
Recurring EBIT (CHFm)
|
1,165
|
1,117
|
+4.4
|
+9.9
|
+9.6
|
Miljan Gutovic, CEO: “I thank all members of the Holcim family for delivering record performance in 2024. Executing on our strategic priorities, Holcim achieved record results across all key financial metrics, from recurring EBIT above CHF 5 billion for the first time, to free cash flow of CHF 3.8 billion.
“During 2024, we further expanded our industry-leading EBIT margin to 19.1% driven by our differentiated value strategy. Our advanced branded solutions meeting our customers’ most ambitious needs, from ECOPact and ECOPlanet to Elevate, grew to 36% of total net sales. Decarbonization and circular construction continued to drive profitable growth, with a 20% rise in recycled construction demolition materials to above 10 million tons. We continued our momentum in value-accretive M&A, closing 27 transactions to grow in the most attractive markets.
“Consistently delivering superior shareholder value, we completed a CHF 1 billion share buyback and the Board has proposed a double-digit dividend increase to a record CHF 3.10 per share.
“The next step in our growth and value creation is on track, with the planned listing of our North American business expected to occur by the end of H1 2025. With a strong outlook across all business segments, we are well positioned for 2025. I am confident we will deliver another year of profitable growth.”
Delivering record results
In the fourth quarter, recurring EBIT rose 9.9% in local currency compared to the prior-year period to reach a record CHF 1,165 million. Fourth-quarter net sales of CHF 6,473 million rose 1.6% in local currency versus the fourth quarter of 2023.
Full-year net sales of CHF 26,407 million for 2024 were up 1.3% in local currency compared to the prior year. Recurring EBIT reached a record CHF 5,049 million for 2024, up 10.8% in local currency compared to the prior year. Holcim’s performance more than offset strong foreign exchange effects, with full-year recurring EBIT up 6.1% in Swiss franc versus the prior-year period.
Free cash flow after leases for the full year rose 2.6% to reach a record CHF 3,801 million, with a cash conversion ratio of 57%.
|
Group Full-Year 2024
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales (CHFm)
|
26,407
|
27,009
|
-2.2
|
+1.3
|
+0.2
|
|
Recurring EBIT (CHFm)
|
5,049
|
4,760
|
+6.1
|
+10.8
|
+10.5
|
|
Recurring EBIT margin (%)
|
19.1
|
17.6
|
|
|
|
|
Operating profit (CHFm)
|
4,642
|
4,577
|
+1.4
|
|
|
|
Net income, Group share (CHFm)
|
2,926
|
3,060
|
-4.4
|
|
|
|
Net income before impairment and divestments, Group share (CHFm)
|
3,185
|
3,089
|
+3.1
|
|
|
|
EPS (CHF)
|
5.24
|
5.37
|
-2.3
|
|
|
|
EPS before impairment and divestments (CHF)
|
5.70
|
5.42
|
+5.3
|
|
|
|
Free Cash Flow after leases (CHFm)
|
3,801
|
3,705
|
+2.6
|
|
|
|
Net financial debt (CHFm)
|
8,448
|
7,896
|
+7.0
|
|
|
Further expansion of industry-leading margin
With its differentiated value strategy, Holcim further expanded its industry-leading recurring EBIT margin by 150 basis points to a record 19.1% in 2024. Holcim’s multi-billion advanced branded solutions, from ECOPact and ECOPlanet to Elevate, increased to 36% of total net sales in 2024, up from 30% in 2023. ECOPact reached 29% of ready-mix concrete net sales by the end of the year,
with ECOPlanet at 26% of cement net sales – each up from 19% of their respective categories a year earlier.
Decarbonization and circular construction drove profitable growth, with a 20% rise in recycled construction demolition materials to 10.2 million tons, with Holcim achieving its 2025 target of
10 million tons a year in advance.
Portfolio optimization through value-accretive M&A continued in 2024, with 27 transactions to focus on the most attractive markets. Holcim closed five additional bolt-ons in the fourth-quarter, with an acquisition in Bulgaria, Croatia and France, as well as two acquisitions in Switzerland. For the full year, Holcim continued to expand in Solutions & Products, acquiring OX Engineered Products, a U.S. leader in advanced insulation systems for commercial and residential applications. Growing across attractive markets, Holcim’s acquisitions included four in Latin America, and four in the fast-growing circular construction market in Europe.
Driving superior shareholder value
Since 2018, Holcim has made seven transformative acquisitions in Solutions & Products and 93 value-accretive bolt-on acquisitions, while investing CHF 4 billion in growth CAPEX. During the same period, Holcim has completed CHF 3 billion in share buyback programs and returned CHF 8 billion to shareholders via progressive dividends. This capital allocation for growth and shareholder returns is made possible by Holcim’s strong balance sheet with its investment grade credit ratings of BBB+ and Baa1.
In light of the company’s record 2024 financial performance and confidence in the future, the Board of Directors proposes a 11% increase in dividend to CHF 3.10 per registered share.
Planned listing of North American business on track to occur by end of H1
Holcim is on track to unlock new value for all stakeholders with the planned full capital market separation of its North American business, to be named Amrize, planned by way of a 100% spin-off.
Amrize has publicly filed its Form 10 Registration Statement with the U.S. Securities and Exchange Commission (link to media release). Holcim’s Board of Directors appointed Jan Jenisch as designated Chairman and CEO of Amrize and 9 designated independent directors to Amrize’s Board.
Amrize is to be listed on the New York Stock Exchange with an additional listing on the SIX Swiss Exchange. Amrize plans to comply with SEC rules applicable to US domestic issuers, reporting in U.S. GAAP and seeking inclusion in relevant U.S. equity indices.
Holcim plans to host an Investor Day for Amrize on 25 March 2025 in New York City and for Holcim on 28 March 2025 in Zurich. At these two dedicated events, investors will have the opportunity to learn more about both companies’ distinct strategies, capital structures, capital allocation priorities and financial targets.
Holcim shareholders will vote on this next step in growth and value creation at Holcim’s Annual General Meeting on 14 May 2025, with the listing of Amrize expected on the NYSE and SIX by
the end of the first half of 2025.
Board of Directors changes
After 12 years on Holcim’s Board of Directors, Hanne Sørensen will not stand for re-election at Holcim’s Annual General Meeting in May. Hanne was entrusted by the Board with the role of Vice-Chairwoman. She also chaired the Nomination, Compensation & Governance Committee and,
as the Board’s Lead Independent Director, ensured strong independent checks and balances.
Jan Jenisch and Jürg Oleas will also not stand for re-election to the Holcim Board of Directors at the AGM, after being proposed to serve on the Board of the planned North American company. The Board thanks Jan, Hanne and Jürg for their dedicated service and their outstanding accomplishments.
The Holcim Board of Directors has proposed two Board nominees for election at this year's Annual General Meeting: Adolfo Orive, President & Chief Executive Officer of Tetra Pak, and Sven Schneider, Chief Financial Officer of Infineon. Both nominees are highly accomplished executives from engineering and technology-driven industries, who will bring deep expertise to advance Holcim’s
next era of growth.
Outlook and guidance
Building on its record full-year performance, Holcim has a strong outlook across all of its business segments as follows:
• North America: Infrastructure modernization and reshoring of manufacturing to drive growth in 2025
• Latin America: Public and private sectors to drive infrastructure and commercial investments
• Europe: Continued strong demand for sustainable building solutions expected to drive profitable growth
• Asia, Middle East & Africa: Strong domestic demand in North Africa, positive outlook in Australia, price recovery in China
• Solutions & Products: Favorable outlook for both new construction and repair & refurbishment market
Well positioned for 2025, Holcim expects continued profitable growth with:
• Mid-single digit Net Sales growth in local currency
• Over proportional growth in recurring EBIT
• Further expansion of recurring EBIT margin
• Free cash flow of above CHF 3.5 billion
• Continued double-digit growth in recycled construction demolition materials
Key Group figures
|
Group Q4
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales (CHFm)
|
6,473
|
6,602
|
-1.9
|
+1.6
|
+0.9
|
|
Recurring EBIT (CHFm)
|
1,165
|
1,117
|
+4.4
|
+9.9
|
+9.6
|
|
Recurring EBIT margin (%)
|
18.0
|
16.9
|
|
|
|
|
Group
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales (CHFm)
|
26,407
|
27,009
|
-2.2
|
+1.3
|
+0.2
|
|
Recurring EBIT (CHFm)
|
5,049
|
4,760
|
+6.1
|
+10.8
|
+10.5
|
|
Recurring EBIT margin (%)
|
19.1
|
17.6
|
|
|
|
|
Operating profit (CHFm)
|
4,642
|
4,577
|
+1.4
|
|
|
|
Net income, Group share (CHFm)
|
2,926
|
3,060
|
-4.4
|
|
|
|
EPS (CHF)
|
5.24
|
5.37
|
-2.3
|
|
|
|
EPS before impairment and divestments (CHF)
|
5.70
|
5.42
|
+5.3
|
|
|
|
Free Cash Flow after leases (CHFm)
|
3,801
|
3,705
|
+2.6
|
|
|
|
Net financial debt (CHFm)
|
8,448
|
7,896
|
+7.0
|
|
|
|
Group Full Year Results by Product Line
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales of Cement (CHFm)
|
13,159
|
13,758
|
-4.4
|
+0.6
|
+1.6
|
|
Recurring EBIT of Cement (CHFm)1
|
3,474
|
3,301
|
+5.2
|
+11.0
|
+11.2
|
|
Recurring EBIT margin of Cement (%)
|
26.4
|
24.0
|
|
|
|
|
|
|
|
|
|
|
|
Net sales of Aggregates (CHFm)
|
4,335
|
4,402
|
-1.5
|
+0.2
|
-0.4
|
|
Recurring EBIT of Aggregates (CHFm)1
|
665
|
644
|
+3.3
|
+5.6
|
+6.3
|
|
Recurring EBIT margin of Aggregates (%)
|
15.3
|
14.6
|
|
|
|
|
|
|
|
|
|
|
|
Net sales of Ready-Mix Concrete (CHFm)
|
5,601
|
5,979
|
-6.3
|
-4.0
|
-5.8
|
|
Recurring EBIT of Ready-Mix Concrete (CHFm)1
|
251
|
241
|
+4.3
|
+7.6
|
+4.0
|
|
Recurring EBIT margin of Ready-Mix Concrete (%)
|
4.5
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
Net sales of Solutions & Products (CHFm)
|
5,939
|
5,632
|
+5.5
|
+7.4
|
+1.9
|
|
Recurring EBIT of Solutions & Products (CHFm)1
|
659
|
574
|
+14.7
|
+17.3
|
+13.8
|
|
Recurring EBIT margin of Solutions & Products (%)
|
11.1
|
10.2
|
|
|
|
|
1 Recurring EBIT by product line includes corporate costs.
|
Segment performance
North America
North America delivered double-digit local currency growth in recurring EBIT to a record CHF 1,624 million in challenging market conditions. The recurring EBIT margin expanded by 330bps to 24.9%. Holcim has now secured 200+ infrastructure projects in the region for the coming years. Infrastructure modernization and the reshoring of manufacturing expected to drive growth in 2025.
|
North America Full Year
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales to external customers (CHFm)
|
6,360
|
6,711
|
-5.2
|
-2.8
|
-2.9
|
|
Recurring EBIT (CHFm)
|
1,624
|
1,483
|
+9.5
|
+12.2
|
+12.4
|
|
Recurring EBIT margin (%)
|
24.9
|
21.7
|
|
|
|
Latin America
Latin America delivered its 18th consecutive quarter of profitable growth. Recurring EBIT reached a new record while the margin rose 190bps to an outstanding 36.0%. During the year, there were
four synergistic acquisitions to enter the new market of Peru and expand in Mexico and Guatemala. Both the public and private sectors are expected to drive infrastructure and commercial investments
in 2025.
|
Latin America Full Year
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales to external customers (CHFm)
|
2,882
|
2,861
|
+0.7
|
+4.0
|
+2.4
|
|
Recurring EBIT (CHFm)
|
1,044
|
985
|
+6.0
|
+9.7
|
+9.3
|
|
Recurring EBIT margin (%)
|
36.0
|
34.1
|
|
|
|
Europe
Sustainable building solutions drove profitable growth in Europe. Recurring EBIT rose +12.1% in local currency to reach a record, with a 200bps expansion in margin to 17.8%. Holcim acquired 13 bolt-ons in the region during the year to expand its footprint in the most attractive markets. Continued profitable growth is expected to come from increasing customer demand for sustainable building solutions.
|
Europe Full Year
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales to external customers (CHFm)
|
7,198
|
7,284
|
-1.2
|
-0.1
|
-1.8
|
|
Recurring EBIT (CHFm)
|
1,335
|
1,202
|
+11.0
|
+12.1
|
+11.3
|
|
Recurring EBIT margin (%)
|
17.8
|
15.8
|
|
|
|
Asia, Middle East & Africa
Profitable growth in the region was led by Australia and North Africa. There was a strong 170bps expansion of the recurring EBIT margin over the year to 22.8%. Four divestments were closed in 2024. The outlook for the year includes strong domestic demand in North Africa, a positive outlook in Australia, and price recovery in China.
|
Asia, Middle East & Africa Full Year
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales to external customers (CHFm)
|
3,612
|
3,982
|
-9.3
|
+3.2
|
+8.2
|
|
Recurring EBIT
|
878
|
898
|
-2.3
|
+11.7
|
+13.5
|
|
Recurring EBIT margin (%)
|
22.8
|
21.2
|
|
|
|
Solutions & Products
Profitable growth continued with a strong Net Sales increase driven by advanced roofing systems. Recurring EBIT grew by double digits, with margin expansion of 100bps. Holcim made four acquisitions as it focused on expanding its commercial and residential offering. The outlook for both new construction and the repair and refurbishment markets is favorable.
|
Solutions & Products Full Year
|
2024
|
2023
|
±%
|
±%
LC growth
|
±%
organic growth
|
|
Net sales to external customers (CHFm)
|
5,915
|
5,608
|
+5.5
|
+7.4
|
+1.9
|
|
Recurring EBIT (CHFm)
|
707
|
614
|
+15.2
|
+17.6
|
+14.3
|
|
Recurring EBIT margin (%)
|
11.9
|
10.9
|
|
|
|
Other Profit & Loss Items
Restructuring, litigation and other non-recurring costs for 2024 stood at CHF 205 million,
compared to CHF 84 million in 2023.
Net financial expenses for 2024 were CHF 525 million versus CHF 499 million in the prior year.
The effective income tax rate before impairment and divestments was 23% for 2024.
Net income Group share decreased by 4.4% to CHF 2,926 million and EPS, before impairment and divestments, was up 5.3% from CHF 5.42 to CHF 5.70 for 2024.
Net capital expenditure for 2024 was CHF 1,477 million.
Reconciliation to Group accounts
Reconciling measures of profit and loss to the Holcim Group’s consolidated statement of income:
|
Million CHF
|
2024
|
2023
|
|
Net sales
|
26,407
|
27,009
|
|
Recurring Operating costs
|
(19,994)
|
(20,935)
|
|
Share of profit of joint ventures
|
264
|
304
|
|
Recurring EBITDA after leases
|
6,677
|
6,378
|
|
Depreciation and amortization of property, plant and equipment, intangible and other long-term assets
|
(1,628)
|
(1,618)
|
|
Recurring EBIT
|
5,049
|
4,760
|
|
Restructuring, litigation and other non-recurring costs
|
(205)
|
(84)
|
|
Impairment of operating assets
|
(202)
|
(99)
|
|
Operating profit
|
4,642
|
4,577
|
|
Million CHF
|
2024
|
2023
|
|
Recurring EBITDA after leases
|
6,677
|
6,378
|
|
Depreciation of right-of-use assets
|
389
|
359
|
|
Recurring EBITDA
|
7,066
|
6,737
|
|
Million CHF
|
2024
|
2023
|
|
Net income before taxes, impairment and divestments
|
4,299
|
4,218
|
|
Impairment of goodwill and long-term assets
|
(202)
|
(99)
|
|
Gain (loss) on disposals of Group companies
|
(75)
|
55
|
|
Net income before taxes
|
4,022
|
4,174
|
|
Million CHF
|
2024
|
2023
|
|
Net income before impairment and divestments Group share
|
3,185
|
3,089
|
|
Net income before impairment and divestments Non-controlling interests
|
112
|
116
|
|
Net income before impairment and divestments
|
3,297
|
3,205
|
|
Impairment of goodwill and long-term assets, net of taxation
|
(160)
|
(82)
|
|
Gain (loss) on disposals of Group companies, net of taxation
|
(95)
|
53
|
|
Net income
|
3,042
|
3,176
|
|
EPS before impairment and divestments in CHF
|
5.70
|
5.42
|
Reconciliation of Free Cash Flow after leases to the Holcim Group’s consolidated statement
of cash flows:
|
Million CHF
|
2024
|
2023
|
|
Cash flow from operating activities
|
5,667
|
5,470
|
|
Purchase of property, plant and equipment
|
(1,650)
|
(1,505)
|
|
Disposal of property, plant and equipment
|
173
|
96
|
|
Repayment of long-term lease liabilities
|
(389)
|
(357)
|
|
Free Cash Flow after leases
|
3,801
|
3,705
|
Reconciliation of Net financial debt to the Holcim Group’s consolidated statement of financial position:
|
Million CHF
|
2024
|
2023
|
|
Current financial liabilities
|
1,842
|
1,416
|
|
Long-term financial liabilities
|
12,014
|
12,665
|
|
Cash and cash equivalents
|
(5,347)
|
(6,082)
|
|
Short-term derivative assets
|
(55)
|
(13)
|
|
Long-term derivative assets
|
(6)
|
(90)
|
|
Net financial debt
|
8,448
|
7,896
|
Alternative Performance Measures definitions
Some Alternative Performance Measures are used in this release to help describe the performance of Holcim. A full set of these Alternative Performance definitions can be found on our website.
|
Measures
|
|
Definition
|
|
Organic growth
|
|
Organic growth information factors out changes in the scope of consolidation (such as divestments and acquisitions occurring in the current year and the prior year) and currency translation effects (current year figures are converted with prior year exchange rates in order to calculate the currency effects).
|
|
Growth in local currency
|
|
Growth in local currency factors in organic growth and acquisitions and divestments by excluding currency translation effects.
|
|
Recurring operating costs
|
|
The recurring operating costs indicator represents all recurring costs. It is defined as:
+/– Recurring EBITDA after leases
– Net sales
– Share of profit of joint ventures
|
|
Recurring EBITDA
|
|
The Recurring EBITDA (earnings before interest, tax, depreciation and amortization) measures the performance of the Group excluding the impacts of non-recurring items. It is defined as:
+/– Operating profit/loss (EBIT)
– Depreciation, amortization and impairment of operating assets
– Restructuring, litigation and other non-recurring costs
|
|
Recurring EBITDA after leases
|
|
The Recurring EBITDA after leases (earnings before interest, tax, depreciation and amortization) measures the performance of the Group including the impacts of lease depreciation and excluding the impacts of non-recurring items. It is defined as the Recurring EBITDA less the depreciation of right-of-use assets.
|
|
Recurring EBIT
|
|
The Recurring EBIT is defined as operating profit/loss (EBIT) adjusted for restructuring, litigation, other non-recurring costs and for impairment of operating assets.
|
|
Recurring EBIT Margin
|
|
The Recurring EBIT margin measures the profitability of the Group excluding the impacts of restructuring, litigation and other non-recurring costs. It is defined as the Recurring EBIT divided by net sales.
|
|
Restructuring, litigation and other non-recurring costs
|
|
Restructuring, litigation and other non-recurring costs relate to significant items that, because of their exceptional nature, cannot be viewed as inherent to the Group’s ongoing performance, such as strategic restructuring, major items relating to antitrust fines and other business-related litigation cases.
|
|
Profit/loss on disposals and other non-operating items
|
|
Profit and loss on disposals and other non-operating items comprise gains or losses on the disposals of Group companies, associates and joint ventures, other non-operating items that are not directly related to the Group’s operating activities such as revaluation gains or losses on previously held equity interests, indemnification provisions and disputes with minority shareholders.
|
|
Operating profit/loss (EBIT) before impairment
|
|
The operating profit/loss (EBIT) before impairment measures the profit earned from the Group’s core business activities excluding impairment charges which, because of their exceptional nature, cannot be viewed as inherent to the Group’s ongoing activities. It is defined as:
+/– Operating profit/loss
– Impairment of Goodwill and long-term assets
|
|
Net income/loss before taxes, impairment and divestments
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Net income/loss before taxes, impairment and divestments excludes impairment charges and capital gains and losses arising on disposals of investments which, because of their exceptional nature, cannot be viewed as inherent to the Group’s ongoing activities. It is defined as:
+/– Net income/loss before taxes
– Gains and losses on disposals of Group companies
– Impairment of goodwill and long-term assets
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Net income/loss before impairment and divestments
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Net income/loss before impairment and divestments excludes impairment charges and capital gains and losses arising on disposals of investments which, because of their exceptional nature, cannot be viewed as inherent to the Group’s ongoing activities. This indicator is net of taxation and is defined as:
+/– Net income/loss
– Gains and losses on disposals of Group companies, net of taxation
– Impairment of goodwill and long-term assets, net of taxation
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Earnings per Share (EPS) before impairment and divestments
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Earnings per Share (EPS) before impairment and divestments measures the theoretical profitability per share of stock outstanding based on a net income/loss before impairment and divestments. It is defined as net income/loss before impairment and divestments attributable to the shareholders of Holcim Ltd divided by the weighted average number of shares outstanding.
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CapEx or net CapEx (net maintenance and expansion CapEx)
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CapEx or net CapEx (net maintenance and expansion CapEx) measures the cash spent to maintain or expand the Group’s asset base. It is defined as:
+ Expenditure to increase existing or create additional capacity to produce, distribute or provide services for existing products (expansion) or to diversify into new products or markets (diversification)
+ Expenditure to sustain the functional capacity of a particular component, assembly, equipment, production line or the whole plant, which may or may not generate a change of the resulting cash flow
– Proceeds from the sale of property, plant and equipment.
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Free Cash Flow after leases
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The Free Cash Flow after leases (also referred as Free Cash Flow) measures the level of cash generated by the Group after spending cash to maintain or expand its asset base. It is defined as:
+/– Cash flow from operating activities
– Net maintenance and expansion CapEx
– Repayment of long-term lease liabilities
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Net financial debt (“Net debt”)
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The Net financial debt (“Net debt”) measures the financial debt of the Group after deduction of the cash. It is defined as:
+ Financial liabilities (short- and long-term) including derivative liabilities
– Cash and cash equivalents
– Derivative assets (short- and long-term)
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Debt leverage
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The Net financial debt to Recurring EBITDA ratio is used as an indicator of financial risk and shows the number of years it would take the Group to repay its debt if Recurring EBITDA and net debt are held constant.
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Invested Capital
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The Invested Capital measures total funds invested by shareholders, lenders and any other financing sources.
It is defined as:
+ Total shareholders’ equity
+ Net financial debt
– Assets classified as held for sale
+ Liabilities classified as held for sale
– Current financial receivables
– Long-term financial investments and other long-term assets
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Net Operating Profit/loss After Tax (“NOPAT”)
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It is defined as:
+/– Net operating profit (loss) (i.e., Recurring EBIT and share of profit of associates)
– Income taxes (determined by applying the Group’s effective tax rate to the net operating profit/loss as defined above)
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Return on Invested Capital (ROIC)
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Return on invested Capital (ROIC) measures the Group’s ability to efficiently use Invested Capital. It is defined as Net Operating Profit (loss) After Tax (NOPAT) divided by the average Invested Capital. The average is calculated by adding the Invested Capital at the beginning of the period to that at the end of the period and dividing the sum by two (based on a rolling 12-month calculation). In case of a material change in scope during the year, the average Invested Capital is adjusted pro rata temporis.
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Cash conversion
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Cash conversion measures the Group’s ability to convert profits into available cash. It is defined as Free Cash Flow after leases divided by Recurring EBITDA after leases.
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Employees (headcount)
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Employees (headcount) refers to the number of individuals on Holcim’s payroll with an active employment contract during the reference period and regardless of employment contract type (full-time, part-time, student contracts, trainees, apprentices and interns), as well as employees on garden leave, maternity/parental leave and sick leave.
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CO₂ per net sales
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The absolute CO2 (thousand metric tons) emissions Scope 1 and Scope 2 divided by millions of net sales.
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ECOPact
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ECOPact is Holcim’s low-carbon concrete product range that delivers equal or better performance than conventional concrete and has at least 30% lower CO2 emissions compared with a local concrete using Ordinary Portland Cement (OPC, alternatively known as CEM I) in the same strength class.
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ECOPlanet
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ECOPlanet is Holcim’s range of low-carbon cement that delivers equal or better performance than conventional cement and has at least at 30% lower CO2 emissions compared to Ordinary Portland Cement (OPC, alternatively known as CEM I).
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Advanced branded solutions
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Brands that meet ambitious customer needs, serve multiple markets and account for at least CHF 1 billion in net sales.
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Green CapEx
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The Sustainability Capital Expenditures with significant positive impact on Process Decarbonization, Clean Energy, Carbon Efficient Construction, Circular Economy, Biodiversity, Air & Water and Communities such as but not limited to carbon capture, waste heat recovery, 3D printing, electrical fleet, calcined clay technology, alternative fuels & raw materials installations.
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Construction demolition materials (CDM)
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CDM recycled volume is generated from construction, renovation, repair and demolition of houses, large building structures, roads, bridges, piers and dams. This includes alternative raw materials, recycled aggregates, asphalt and return concrete reused in cement, aggregates, ready-mix concrete, asphalt and concrete products. CDM is equivalent to construction and demolition waste (CDW) as defined by the EU Waste Framework Directive.
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Additional information
Analyst presentation and Integrated Annual Report
The analyst presentation of the results and the Holcim 2024 Integrated Annual Report are available on our website.
Media conference: 09:00 CET Analyst conference: 11:00 CET
In order to participate in the analysts’ conference, please register here.
About Holcim
Holcim is a global leader in innovative and sustainable building solutions with net sales of CHF 26.4 billion in 2024. Our 65,000 employees are driven by our purpose to build progress for people and the planet across our regions to improve living standards for all. We partner with our customers to offer the broadest range of advanced solutions, from sustainable building materials ECOPact and ECOPlanet, to our circular technology ECOCycle®, all the way to Elevate’s advanced roofing and insulation systems.
Learn more about Holcim on holcim.com, and by following us on LinkedIn.
Sign up for Holcim's Building Progress newsletter here.
Important disclaimer – forward-looking statements:
This document contains forward-looking statements. Such forward-looking statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets, as the case may be, including with respect to plans, initiatives, events, products, solutions and services, their development and potential. Although Holcim believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are difficult to predict and generally beyond the control of Holcim, including but not limited to the risks described in the Holcim's annual report available on its website (www.holcim.com) and uncertainties related to the market conditions and the implementation of our plans. Accordingly, we caution you against relying on forward-looking statements. Holcim does not undertake to provide updates of these forward-looking statements.
[1] Before impairment and divestments.
About Holcim
Holcim is a global leader in innovative and sustainable building solutions with net sales of CHF 26.4 billion in 2024. Our 65,000 employees are driven by our purpose to build progress for people and the planet across our regions to improve living standards for all. We partner with our customers to offer the broadest range of advanced solutions, from sustainable building materials ECOPact and ECOPlanet, to our circular technology ECOCycle®, all the way to Elevate’s advanced roofing and insulation systems.
Learn more about Holcim on www.holcim.com, and by following us on LinkedIn.
Sign up for Holcim's Building Progress newsletter here.
Important disclaimer – forward-looking statements:
This document contains forward-looking statements. Such forward-looking statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets, as the case may be, including with respect to plans, initiatives, events, products, solutions and services, their development and potential. Although Holcim believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are difficult to predict and generally beyond the control of Holcim, including but not limited to the risks described in the Holcim's annual report available on its website (www.holcim.com) and uncertainties related to the market conditions and the implementation of our plans. Accordingly, we caution you against relying on forward-looking statements. Holcim does not undertake to provide updates of these forward-looking statements.
End of Inside Information
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