Comparing the 2024 revenues of the 4x largest multinational cement companies in 2024 is on type of rudimentary benchmarking of the financial performance of the cement companies. CRH achieved the highest sales revenue, Holcim second, Heidelberg Materials third and Cemex fourth.

To compare the financial perfoermance of cement companies of different size and scale we use ratio analysis. So the gross profits divided by the revenues gives the gross profit margin. 40.76% for CRH, 45.94% for Holcim, 36.29% for Heidelberg Materials, 39.89% for Cemex. Those margins are comparable, irrespective of the size of the sales revenue. Holcim are clearly the best for gross profit margin.

The operating or EBITDA profits divided by the revenue gives the operating or EBITDA profit margin. 18.89% for CRH, 25.26% for Holcim, 19.27% for Heidelberg Materials and 19.00% for Cemex. Holcim have stretched their lead at the operating or EBITDA profit level. CRH have fallen to the back of the peer group. SG&A costs must be higher than their peers.

EBIT profit margins are 13.84% for CRH, 18.12% for Holcim, 13.15% for Heidelberg Materials, 12.43% for Cemex. Holcim maintaining their lead at the EBIT level.

EBT profit margins are 13.25% for CRH, 14.49% for Holcim, 11.05% for Heidelberg Materials and 6.62% for Cemex. Holcim maintaining their lead while Cemex have fallen off the pace. Interest costs must be higher than their peers.

Earnings margins are 9.72% for CRH, 11.27% for Holcim, 8.25% for Heidelberg Materials and 6.65% for Cemex. Holcim clearly are the winners when it comes to benchmarking profit margins. This matters. On c.29 billion dollars revenue Holcim have generated c.3.2 billion dollars earnings. On nearly 36 billion dollars revenue CRH have only generated c.3.5 billion dollars earnings. If CRH could match Holcim’s earnings margin they would have enjoyed c.600 million dollars additional earnings.

From the range bars we can see that Holcim’s profit margins at EBITDA and Earnings levels are just above the median of cement companies. The other major multinational cement company’s profit margins are just below the median of cement companies. Some cement companies enjoy much higher profit margins at both EBITDA and Earnings levels. Those lucky, or well-managed cement companies are the topic for tomorrow’s post.