The global building materials giant's 2021 net sales of CHF 26,834mn (€25.956mn) were up 11.3% on a like-for-like basis on CHF 23,142mn (€22.385mn) in 2020. The Group's recurring EBIT (earnings before interest & taxes) reached CHF 4,612mn (€4.461mn) in 2021, up 25.7% on a like-for-like basis on CHF 3,676mn (€3,555mn) the previous year.
Commenting on Holcim's record annual figures, Group CEO Jan Jenisch said: "2021 was a record year for Holcim, reaching new levels of performance, across our financial and ESG targets. What makes me most proud is how we navigated the COVID pandemic with such extraordinary resilience and agility, working tirelessly to keep our people and communities safe.
"We delivered record financial performance across all our key metrics with net sales of CHF 26.8 billion and over-proportional Recurring EBIT growth of +25.7% LFL, reaching CHF 4.6 billion, and a debt leverage ratio of 1.4x. We achieved these unprecedented results while accelerating the expansion of Solutions & Products, advancing our vision to become the global leader in innovative and sustainable building solutions. We successfully welcomed Firestone Building Products into the Group in April and closed the year with double-digit growth. We also made good progress in the acquisitions of Malarkey and PRB Group, as further double-digit growth engines for the company."
Jenish said Holcim had delivered on the Group's Strategy 2022 one year in advance, "setting solid foundations for our next era of growth".
He continued: "Putting sustainability at the core of our strategy, we accelerated the deployment of our green building solutions, from ECOPact green concrete and ECOPlanet green cement to smart roofing and energy efficiency systems. My sincere thanks go to our 70,000 people who made all of this possible while keeping safety top of mind at all times."
In 2022, Holcim expects growth momentum to continue in all regions with double-digit net sales; growth in Solutions & Products; accelerated progress towards 2025 sustainability targets; growth in net sales of above 6% like-for-like; positive growth in Recurring EBIT (like-for-like); and free cash flow above CHF 3bn.
In 2021, Holcim became the first Group in its industry to have its 2050 net-zero targets validated by the Science Based Targets initiative, covering scope 1, 2 and 3 CO₂ emissions and cutting across its entire operations and value chain. Holcim also launched the industry's first sustainability-linked bonds in the Swiss franc market, raising a total of CHF 425 million. This represents a significant step toward the goal announced under its Strategy 2025 – Accelerating Green Growth to link over 40% of financing agreements to the Group's sustainability goals.
Holcim also made solid progress toward three other 2025 sustainability targets announced as part of its new strategy:
- 25% of ready-mix sales from ECOPact green concrete
- Ten million tons of construction & demolition waste (CDW) recycled in its products annually, and 75 million tons per year of recycled materials overall
- Green CAPEX of CHF 500 million per year by 2025
Since its global launch, the company has already sold more than 1 million m³ of ECOPact green concrete with a worldwide presence across 24 markets to date, on its way to 25% of ready-mix net sales by 2025. The company is scaling up circular construction, with a +17% increase in recycled materials, reaching 54 million tons in 2021 and 6.6 million tons of CDW recycled into new products.
Holcim's board of directors has appointed Toufic Tabbara, currently CEO US Cement, as region head North America and member of the Group Executive Committee, effective 1 March 2022.
Toufic joined the Group in 1998 as director of strategy & development in the US. He has a strong track record of leading Holcim's ready-mix concrete, aggregates and cement businesses in the United States, Canada, Egypt, Jordan, Lebanon, and Algeria. With his extensive experience, Toufic is well-positioned to ensure profitable and sustainable growth across the North America region. Toufic succeeds René Thibault, who decided to pursue new opportunities outside Holcim.
