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(Sharecast News) - Holcim said it made a "strong start" to the year, with organic sales and profits both growing despite concerns about a weaker construction market, with the Swiss cement manufacturer holding on to guidance for the full year.
Net sales totalled CHF3.52bn over the first three months of 2026, down 4.8% on a reported basis, but 3.9% higher organically when including continuing operations only, with the company noting that momentum accelerated in MarchThe consensus forecast was CHF3.42bn.
"Holcim delivered robust organic growth in net sales driven by its leading positions in highly attractive markets," said chief executive Miljan Gutovic.
Recurring earnings before interest and tax also reduced 11.2% to CHF431m as the recurring EBIT margin reduced to 12.2% from 13.3%, but profits grew 8.3% on an organic basis. Analysts had pencilled in a figure closer to CHF407m.
"Strong organic growth in recurring EBIT came from strict cost discipline, operational excellence and increased customer demand for our premium brands and sustainable offering," Gutovic said.
Holcim said that investments in AI - "a strategic accelerator of incremental value" for the business - should have a CHF200m positive impact on recurring EBIT by 2028, through cost avoidance and savings. The firm said it would be investing CHF20m per year in AI over the four core areas of production, logistics, commercial and administration.
For 2026, the company held on to its full-year guidance, targeting 3-5% organic net sales growth and 8-10% organic recurring EBIT growth.
Despite the better-than-expected headline figures, the stock was down 0.1% at CHF71.80 by 0934 BST.
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