The French-Swiss building materials giant saw its adjusted operating EBITDA rise by 15.5% in Q4 2016, with synergies of CHF 638 million delivered in 2016, well ahead of target. Operating Free Cash Flow more than doubled in Q4, up CHF 1.7 billion for the full 2016 year. Meanwhile, the company achieved a net debt reduction of CHF 2.5 billion in 2016.
LafargeHolcim expects double-digit like-for-like Adjusted Operating EBITDA growth in 2017.
For the full 2016 year, LafargeHolcim saw its adjusted operating EBITDA rise by 1.3% to CHF 5.242 billion from CHF 4.645 billion. This was despite an 8.7% fall in net sales from CHF 29.483 billion to CHF 26.904 billion.
Eric Olsen, CEO of LafargeHolcim said: “2016 was a year of accelerating earnings momentum. We delivered significant improvements in EBITDA, cash flow and earnings per share with outperformance on synergies and excellent progress on cost and pricing.
“Our strong execution was visible across our five regions which all grew earnings for the quarter and for the year. This performance underlines the strength of our diversified portfolio, which has a good balance of mature and developing markets. I am also pleased with the positive trajectory of markets such as the US, Nigeria, India and key countries in Europe which we have singled out as important drivers for growth in 2017 and beyond.
“We have demonstrated our earnings potential in 2016. Looking ahead, we expect to deliver top line improvement and strong growth in Adjusted Operating EBITDA, cash flow and earnings per share in 2017 and we are on track to reach our 2018 targets.
“This will support our commitments to a solid investment grade rating, an attractive dividend policy and returning excess cash to shareholders.”
