Holcim Reports Increase in Net Profit for First Half of 2021

Swiss building-material company, Holcim, has announced a 9% rise in net profit for the first half of the year. The growth was driven by increased sales in the North American market and improved margins.

Holcim reported a net profit of CHF 1.26 billion ($1.46 billion) for the first six months of the year, compared to CHF 1.16 billion in the same period last year. Despite a decline of 11% in first-half sales, which amounted to CHF 13.07 billion, the company witnessed organic sales growth of 7.4%.

The decrease in sales was primarily attributed to a 51% drop in the Asia, Middle East & Africa market. However, this decline was partially offset by higher sales from North American operations.

In the second quarter, Holcim recorded sales of CHF 7.34 billion, representing an 11% decrease compared to the previous year. The company reported recurring earnings before interest and taxes of CHF 1.55 billion in Q2 2021, slightly lower than the CHF 1.56 billion achieved in the same period last year.

These results align closely with the estimated sales of CHF 7.225 billion and recurring EBIT of CHF 1.45 billion proposed by market experts.

Holcim remains optimistic about its performance for the remainder of the year and has maintained its guidance of organic sales growth above 6% and organic recurring EBIT growth above 10%.