Holcim Shares Gain On Growth In FY24 Recurring EBIT, Dividend Hike, Positive Outlook

(RTTNews) - Shares of Holcim Group were gaining 3 percent in Switzerland after the building materials firm reported Friday higher recurring EBIT and margin in fiscal 2024, even as net profit and net sales were lower than last year.

Looking ahead, for fiscal 2025, Holcim expects continued profitable growth with over proportional growth in recurring EBIT, further expansion of recurring EBIT margin, and mid-single digit net sales growth in local currency.

Further, the Board of Directors has proposed a dividend increase of 11 percent to 3.10 Swiss francs per share.

Miljan Gutovic, CEO, said, "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."

Holcim is on track with the planned full capital market separation of its North American business, to be named Amrize, planned by way of a 100 percent spin-off. Holcim's Board appointed Jan Jenisch as designated Chairman and CEO of Amrize, along with 9 designated independent directors to its Board.

Amrize will be listed on the New York Stock Exchange with an additional listing on the SIX Swiss Exchange.

Further, Holcim announced that Vice Chairwoman Hanne Sørensen, after 12 years on the Board, will not stand for re-election at the Annual General Meeting in May.

Jan Jenisch and Jürg Oleas will also not stand for re-election to the Holcim Board at the AGM, after being proposed to serve on the Board of the planned North American company.

The Holcim Board has proposed Adolfo Orive, President & Chief Executive Officer of Tetra Pak, and Sven Schneider, Chief Financial Officer of Infineon, as Board nominees for election at this year's AGM.

In fiscal 2024, Holcim's net income, Group share dropped 4.4 percent to 2.93 billion francs from last year's 3.06 billion francs. Earnings per share were 5.24 francs, down 2.3 percent from 5.37 francs a year ago.

Adjusted earnings per share were 5.70 francs, compared to prior year's 5.42 francs.

Recurring EBIT, however, grew 6.1 percent from last year to 5.05 billion francs, and Recurring EBIT margin improved to 19.1 percent from 17.6 percent a year ago.

Holcim noted that its multi-billion advanced branded solutions, from ECOPact and ECOPlanet to Elevate, increased to 36 percent of total net sales in 2024, higher than 30 percent in 2023. ECOPact reached 29 percent of ready-mix concrete net sales, while ECOPlanet reached 26 percent of cement net sales. Both were higher than the 19 percent of their respective categories a year earlier.

Net sales, meanwhile, dropped 2.2 percent to 26.41 billion francs from 27.01 billion francs last year. Sales were up 1.3 percent in local currency compared to the prior year, and organic sales growth was 0.2 percent.

In its fourth quarter, recurring EBIT grew 4.4 percent from last year to 1.17 billion francs, and Recurring EBIT margin improved to 18.0 percent from prior year's 16.9 percent, while net sales dropped 1.9 percent to 6.47 billion francs. Net sales rose 1.6 percent in local currency.

The company noted that decarbonization and circular construction continued to drive profitable growth, with a 20 percent rise in recycled construction demolition materials in the year to 10.2 million tons. Holcim achieved its 2025 target of 10 million tons a year in advance.

In Switzerland, Holcim shares were trading at 98.50 francs, up 3 percent.

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