LafargeHolcim reported a better-than-consensus set of H1 20 results although the operational performance was weaker than that of HEI (which also published its results today). We attribute this to LHN’s larger exposure to the markets having experienced strict lock-downs and due to a weaker contingency plan versus HEI. LHN did however manage to generate excellent FCF via active NWC management. The management is optimistic about H2. We maintain our BUY recommendation.
30 Jul 2020
H1 20: excellent FCF but at the cost of H2?
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H1 20: excellent FCF but at the cost of H2?
LafargeHolcim reported a better-than-consensus set of H1 20 results although the operational performance was weaker than that of HEI (which also published its results today). We attribute this to LHN’s larger exposure to the markets having experienced strict lock-downs and due to a weaker contingency plan versus HEI. LHN did however manage to generate excellent FCF via active NWC management. The management is optimistic about H2. We maintain our BUY recommendation.