27 July 2022
Switzerland: Holcim increased its consolidated sales by 17% year-on-year to US$15.3bn in the first half of 2022 from US$13.1bn in the first half of 2021. Its recurring earnings before interest and taxation (EBIT) were US$2.26bn, up by 9.6% from US$2.06bn. Cement sales volumes fell by 3.7% to 95.3Mt from 99Mt, and decreased in all regions except North America, where they rose by 9.6% to 10Mt. Meanwhile, the sharpest drop was in Holcim’s home region of Europe, where cement sales fell by 9.5% to 20.1Mt from 22.2Mt. Group operating profit rose by 15% to US$2.15bn from US$1.86bn, while its net debt rose by 7.5% to US$13.9bn from US$12.9bn.
Holcim called market conditions “volatile,” but forecast net sales growth of 10% year-on-year on in 2022, upgraded from 8%. It also expects to end the year with accelerated progress towards its 2025 sustainability targets, positive growth in its recurring EBIT and a free cash flow above US$3.12bn.
Chief executive officer Jan Jenisch said “Our record results, from net sales to recurring EBIT and earnings per share, are setting solid foundations to deliver our Strategy 2025 - Accelerating Green Growth.”
Siam Cement Group increases first half sales in 2022 27 July 2022
Thailand: Siam Cement Group (SCG) recorded sales of US$8.29bn in the first half of 2022, up by 19% year-on-year from US$6.95bn in the first half of 2021. Cement and building materials revenues were US$2.82bn, 34% of total sales, up by 12% from US$2.52bn in the first half of 2021. The group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 24% to US$1.15bn from US$1.51bn.
SCG recorded domestic declines in demand for cement and ready-mix concrete of 5% and 7% respectively in the first half of 2022. Cement demand also fell by 10% in Cambodia and by 2% in Myanmar, but rose by 5% in Indonesia and by 1% in Vietnam. In Thailand, SCG expects cement demand to “improve” in the third quarter of 2022, but noted the possible mitigating impact of rising inflation.
UK: Breedon Group recorded sales of Euro798m in the first half of 2022, up by 12% year-on-year from Euro714m in the first half of 2021. Its earnings before interest and taxation (EBIT) increased by 22% to Euro77.9m from Euro63.9m, while its profit after tax increased by 29% to Euro70.7m from Euro54.9m.
The group said “We are optimistic for the remainder of 2022. Our customers’ order books are healthy, the mechanism for passing through cost increases has traction and enquiry levels are encouraging. We therefore expect to deliver underlying EBIT at the top end of the range of consensus expectations.”
Chief executive officer Rob Wood said “We enjoyed a strong start to 2022. Our teams are focused on getting pricing right, our end market exposure is supportive and that has produced excellent results, advancing our margins and returns towards our medium term targets. We completed two in-fill transactions during July 2022, with further mergers and acquisitions activity in the pipeline, and we have continued to progress on a broad range of sustainability initiatives, including a commitment to the Science Based Targets Initiative.”
Spain: Cement consumption grew by 2.5% year-on-year to 7.49Mt in the first half of 2022. Data from the Spanish cement association Oficemen also shows that exports fell by 21% to 2.91Mt. It said that this is the first time since 2011 that Spanish cement exports have fallen below 3Mt in the first half of the year. The association has warned of potential threats to the sector such as inflation and a recession in the second half of 2022.
Aniceto Zaragoza, the general manager of Oficemen, said “Since the Iberian Mechanism began to be applied, there has been a drop in the average price of electricity for industry, although much less significant than expected. The mechanism is capable of moderating the price of the wholesale market, but the lack of wind generation caused by the heat wave and the consequent increase in the use of combined cycles, together with the increase in the price of gas, makes a global reform necessary of the European electricity market.”
Mexico: State police have intervened during a confrontation between rival groups for control of Cruz Azul’s Tula cement plant in Hidalgo. A group of workers, allegedly numbering 1000 people, aligned to the faction that controls the majority of Cruz Azul’s cement plants travelled to the site in Jasso by bus and taxi on the evening of 26 July 2022, according to La Jornada newspaper. Another group defending the plant reportedly blocked local roads and used sticks, pipes and stones to repel the assault. The police managed to deter most of the convoy travelling to the plant. However, eight deaths occurred when some of the attackers made it through.
The Tula cement plant is the sole remaining Cruz Azul unit still controlled by former company director Guillermo ‘Billy’ Álvarez and his associates. The rest of the company is under the command of Cruz Azul’s directors José Antonio Marín and Víctor Manuel Velázquez.