ZUG / LONDON (IT BOLTWISE) – The building materials group Holcim recorded a 2.5 percent decline in sales in the third quarter, but is sticking to its annual targets. Despite the challenges posed by the strong Swiss franc and exchange rate effects, the company remains optimistic, particularly due to the strategic acquisition of the German manufacturer Xella.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
The building materials giant Holcim recorded a decline in sales of 2.5 percent to 4.04 billion francs in the third quarter. Exchange rate effects, particularly the strong Swiss franc, had a significant impact on results. Nevertheless, the group remains optimistic and is sticking to its annual targets. Holcim was able to achieve organic growth of 4.5 percent, which underlines the strength of its operating business.
A key part of Holcim’s growth strategy is the recent acquisition of the German manufacturer Xella for 1.85 billion euros. This acquisition is intended to strengthen the Building Solutions division and generate additional sales of around 1 billion euros. With this strategic decision, Holcim is increasingly focusing on the German market, which is seen as a key region for future growth.
Recurring operating profit (EBIT) remained almost unchanged compared to the previous year at 836 million francs. However, an increase of 9.9 percent was achieved through our own efforts, which underlines the company’s operational efficiency. Analysts are pleased with Holcim’s profitability, especially given the difficult market conditions in some regions.
The Holcim share reacted positively to the latest developments and rose by 2.38 percent to 69.64 CHF. Since the beginning of the year, the share price has increased in value by over 50 percent, reflecting investors’ confidence in the company’s strategic direction. Analysts praise Holcim’s ability to achieve better-than-expected margins despite adverse circumstances.
For the current year, Holcim expects sales growth of 3 to 5 percent in local currency. Recurring operating profit is expected to increase by 6 to 10 percent. The company also plans to increase the free cash flow before leases to around 2 billion francs. Another focus is on the business with recycled construction and demolition materials, which is expected to grow by more than 20 percent.
Holcim boss Miljan Gutovic emphasized the importance of the strategic focus on Germany and expects substantial orders from the region’s infrastructure program. Despite the challenges in Latin America, which are described as a temporary phase, the company remains confident of increasing the EBIT margin in this region to over 30 percent.
*Order an Amazon credit card with no annual fee with a credit limit of 2,000 euros! a‿z
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ «KI Gadgets»
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “Holcim relies on growth in Germany despite declining sales”.