Europe

Disciplined cost management and continued delivery of synergies helped the Europe region drive strong margin improvement and a 16.3 percent rise in Adjusted Operating EBITDA on a like-for-like basis despite a slight fall in net sales.

Most countries reported resilient performance with the positive effects of favorable weather in September visible in improved overall cement and aggregate volumes.

France experienced flat volumes in what remains a stable market. The UK contributed to growth in Adjusted Operating EBITDA helped by disciplined cost management.

Russia, which has suffered from low oil and gas prices, showed some signs of stabilization in the quarter with a better than expected upturn in activity and pricing during the important summer construction period.

Belgium returned solid growth in Adjusted Operating EBITDA on the back of a positive product mix effect in aggregates. Switzerland delivered an increase in Adjusted Operating EBITDA through decisive cost reduction actions while growing volumes.

Romania and Poland experienced tougher conditions in Q3, negatively affecting year-on-year growth in Adjusted Operating EBITDA. Both countries were impacted by delayed infrastructure projects financed from European Union funds. Spain showed little sign of improvement in Q3 as political uncertainty continued to depress levels of investment and the overall economy.

Europe – Pro forma information

 

 

July–Sept
2016

July–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

12.0

12.1

–0.8

–0.8

Sales of aggregates

million t

34.3

33.4

+2.8

+2.8

Sales of ready-mix concrete

million m3

4.8

4.9

–3.4

–3.4

Net sales

million CHF

1,890

1,999

–5.5

–1.6

Operating EBITDA

million CHF

400

360

+11.2

+16.3

Operating EBITDA adjusted1

million CHF

418

376

+11.3

+16.3

Operating EBITDA margin

%

21.2

18.0

 

 

Operating EBITDA margin adjusted1

%

22.1

18.8

 

 

Cash flow from operating activities

million CHF

431

238

+80.8

+85.3

Operating Free Cash Flow2

million CHF

371

151

+146.2

+152.4

Europe – Pro forma information

 

 

Jan–Sept
2016

Jan–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

31.6

32.2

–2.0

–2.0

Sales of aggregates

million t

93.3

92.1

+1.4

+1.4

Sales of ready-mix concrete

million m3

13.8

14.0

–1.6

–1.6

Net sales

million CHF

5,355

5,573

–3.9

–2.7

Operating EBITDA

million CHF

945

863

+9.5

+11.5

Operating EBITDA adjusted1

million CHF

993

960

+3.4

+5.2

Operating EBITDA margin

%

17.6

15.5

 

 

Operating EBITDA margin adjusted1

%

18.5

17.2

 

 

Cash flow from operating activities

million CHF

632

275

+129.7

+133.1

Operating Free Cash Flow2

million CHF

465

47

+889.0

+918.0