Holcim: Disappointing EBITDA driven by lower contribution from cost savings programmeBUY, Fair Value EUR111 (+16%)
Holcim has published Q1 EBITDA below consensus expectations (6.1% below) and our estimates (9.5% below). Cement price mix effects have improved in Q1 at 1.8% after +2.2% in Q4 and -1.0% in Q3. As for the cost-cutting programme, Holcim has achieved CHF119m in Q1 which is disappointing with regards to our estimates of CHF180m and Q4 delivery of CHF277m. The planned merger with Lafarge might have temporarily put on hold the programme, in our view, which could explain the disappointment at the EBITDA level. BUY stance is unchanged.