Holcim reported Friday higher profit in fiscal 2022 with srong sales, even as fourth-quarter recurring EBIT, a key earnings metric, and sales were weak.
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Further, the company lifted its dividend, and said it projects growth in profit and sales for fiscal 2023.
Separately, Holcim announced that its Board of Directors intends to propose CEO Jan Jenisch as the new Chairman at the AGM in May 2023, as Beat Hess, Chairman of the company since 2016, has decided not to seek re-election to the Board.
Jan Jenisch will continuing in his current role for a limited duration. The company plans to announce CEO successor within the next 12 months.
Further, Vice Chairperson Hanne Sorensen has been appointed as Lead Independent Director, and will continue to chair the Nomination, Compensation & Governance Committee.
The Board proposed a 14 percent increase in dividend to 2.50 Swiss francs per registered share, based on its strong 2022 financial performance and confidence in the future.
Regarding its outlook, Holcim said it has started 2023 with continued fast pace, and is confident to continue the fast-paced execution of its Strategy 2025 - Accelerating Green Growth.
Holcim expects continued profitable growth with net sales growth of 3 percent to 5 percent like-for-like, and over-proportional growth in Recurring EBIT on LFL basis.
Jan Jenisch, CEO said, "As we enter 2023, we are continuing our fast pace. We've already made seven acquisitions in the first two months of the year..... I look forward to another year of continued profitable growth and fast-paced transformation, to become the global leader in innovative and sustainable building solutions."
In the fourth quarter, recurring EBIT dropped 6.2 percent to 1.03 billion francs from 1.10 billion francs last year. Recurring EBIT margin, however, grew to 15.9 percent from 15.7 percent a year ago.
Net sales fell 7.6 percent to 6.46 billion francs from 6.99 billion francs last year. On a like-for-like basis, net sales for the quarter grew 9.5 percent.
In fiscal 2022, net income Group share reached 3.31 billion francs, up 44 percent from last year's 2.30 billion francs.
Earnings per share were 5.48 francs, a growth of 47 percent from 3.73 francs a year ago. ■