JONA (dpa-AFX) - Swiss building materials firm Holcim Group (HCMLY.PK, HCMLF.PK) reported Friday lower recurring EBIT, a key earnings metric, in its first quarter with slightly weak net sales.
Recurring EBIT dropped 3.1 percent to 515 million Swiss francs from last year's 532 million francs. In local currency, recurring EBIT grew 1.7%, and the growth was 1.5% organically.
Recurring EBITDA, however, edged up to 1.011 billion francs from 1,010 billion francs a year ago.
Net sales were 5.544 billion francs, down 0.2 percent from 5.586 billion francs in the prior year. Sales fell 0.8% in local currency and 0.6% organically.
North America had a good start to the year, despite being affected by unfavorable weather conditions. Latin America delivered further profitable growth in the first quarter. In Europe, the company recorded strong over-proportional recurring EBIT growth, with continued recurring EBIT margin expansion.
Asia, Middle East & Africa realized double-digit recurring EBIT growth in local currency, led by North Africa.
Further, the company confirmed fiscal 2025 outlook, expecting 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.
The company also confirmed that the spin-off of Amrize is progressing well towards its expected listing in June.
On May 14, shareholders will vote on the special distribution, by way of a dividend-in-kind, of one Amrize share for every Holcim share.
Subject to shareholders' approval and the conditions precedent being fulfilled or waived, Holcim will effect the spin-off of Amrize. The listings of Amrize on the NYSE and SIX Swiss Exchange are expected to occur in June 2025.
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