Net sales of CHF 7.28 billion (€6.71 billion) were achieved in the second quarter of 2016. Net income increased CHF 318 million (€293.28 million) to CHF 452 million (€416.9 million) in the first half of this year, while LafargeHolcim’s Q2 EBITDA was up 6% in Q2 2016, compared to Q2 2015. Additionally, the company’s divestment target of CHF 3.5 billion (€3.22 billion) for 2016 has already been exceeded.
Meanwhile, cement prices increased by 2.2% quarter-on-quarter, demonstrating, the company said, the effectiveness of its broad-based pricing strategy. This followed the 1.2% increase seen in the first three months of the year.
Eric Olsen, CEO of LafargeHolcim said: “Our focus on pricing and synergies is delivering visible earnings momentum, driving a 210 basis points year-on-year improvement in operating margins and a 6% increase in like for like Adjusted Operating EBITDA in Q2.
“Without the effect of Nigeria, where our plants were affected by gas shortages, adjusted operating EBITDA would have increased by 13% in the quarter. Nigeria is a high growth market and we are adapting our plants to reduce our dependency on gas to restore supply and capture growth. We expect these measures to take effect by the end of the year.”
LafargeHolcim say 2016 will be a year of progress towards its 2018 targets. A company statement, released with the Q2 and H1 2016 results, read: “In light of developments in selected countries during the first half, we expect demand in our markets to grow at between 1-3% for the full year. Based on the trends we see in pricing and synergies our full year expectations remain unchanged.”
In a busy week for LafargeHolcim, the company has also announced changes to its executive committee reflecting the ‘evolution of its portfolio’ following recent divestments, and a transition to the next phase for the Company as it closes the post Lafarge-Holcim merger integration phase.
• Pascal Casanova, currently responsible for the Latin America Region, will take responsibility for North America including Mexico
• Roland Köhler, currently responsible for the Europe Region will add Australia, New Zealand and Trading to his responsibilities.
• Martin Kriegner, currently responsible for India, will join the Executive Committee and take additional responsibility for South East Asia.
• Oliver Osswald, currently responsible for our operations in Argentina, will join the Executive Committee with responsibility for Central and South America.
As a result of these changes, the company also revealed that Alain Bourguignon and Ian Thackwray have decided to pursue new opportunities outside the Group.
As of August 5, 2016, the executive committee, chaired by Eric Olsen, will be composed of the following members:
• Urs Bleisch, Group Head of Performance & Cost
• Pascal Casanova, Region Head North America including Mexico1
• Roland Köhler, Region Head Europe & Australia / New Zealand & Trading1
• Martin Kriegner, Region Head India & South East Asia2
• Gérard Kuperfarb, Group Head of Growth & Innovation
• Caroline Luscombe, Group Head of Organization and Human Resources
• Oliver Osswald, Region Head Central & South America2
• Saâd Sebbar, Region Head Middle East & Africa
• Ron Wirahadiraksa, Chief Financial Officer
“I would like to thank Alain and Ian for their contribution towards building our new culture and footprint and putting our synergies well on track. I wish them every success in their future endeavours,” said Eric Olsen.
“I am happy to welcome Martin and Oliver as new members of the Executive Committee. Together with Pascal and Roland they bring valuable extensive experience in retail, commercial transformation and performance management. They will be key assets for the new team.”
